For most small businesses, administration is a necessary evil and can devour a significant portion of each business day. It is non- revenue generating and costly, once the time spent on administration functions is quantified.
Using technology effectively is one way to reduce administration time and cost.
Payroll is an administration function and can be complex. Accurately recording and maintaining annual and sick leave records, and manually calculating holiday pay entitlements is difficult.
Filing PAYE and employer deduction records manually with IRD and is error prone and clunky.
Technology is coming to the rescue – payroll management software is affordable and takes the hard work out of payroll. IRD’s “payday filing” launching in April 2019 provides an opportunity for SMEs to harness technology to simplify payroll processes and reduce administration costs.
When re-engineering your payroll processes it may be timely to consider changing the frequency of wage payments. Weekly payroll processing is twice as expensive as fortnightly payroll, and four times as expensive as monthly payroll! It’s not too hard to change, and there are ways to encourage employees to agree to a change in payroll frequency.
Proactive businesses review their systems and processes regularly. Now is a great time to review your payroll processes to improve efficiency and reduce costs.
Q2 Ltd can help you reduce your payroll management and administration costs – let us know if you would like to have a chat about this