6 ways to eliminate payroll frustrations
Everyone looks forward to payday - bank accounts digits grow, employees feel rewarded for all the hard work they’ve put in the last week, fortnight or month, and dopamine levels increase at the thought of spending that disposable income.
Despite the rewards payday brings, the amount of hard work that actually goes into ensuring people get paid accurately, and on time, is often overlooked.
All accountants and payroll professionals know that processing payroll isn’t simply a one size fits all solution. It involves tax codes, pensions, statutory sick pay; the list goes on. It’s more like fitting as many extra sides onto an already full plate of English breakfast while you grapple trying to stomach it all. Unlike the majority of employees, payday for you is a day filled with stressful deadlines, numerous calculations and repeatedly checking data to ensure it’s accurate before you hit “finalise” on a pay run.
Sadly, the culprit continuously causing this unfortunate situation to unfold are clunky, inefficient payroll systems that coexist with key pain points in the payroll process, instead of eliminating them. In our bid to help improve this situation, we’ve rounded up six pain points in the payroll process that can be eliminated with the right technology, making payroll a better day for you:
1. HMRC & tax codes
Systems that don’t automatically update tax codes via HMRC means a payroll manager needs to manually check any changes with HMRC each pay run, or run the risk of either overpaying or underpaying employees. The extra step chews up time, is easily forgotten, and can easily result in mistakes in manual data entry.
2. Pension integrations
Administrative tasks such as auto-enrolment, reporting pension payments, updating pension scheme details as well as calculating NI rebates and managing multiple pension schemes result in time consuming, manual work each pay run.
3. Restricted connections
Desktop payroll software, or cloud software without an open API creates an extra step in payroll processing. Payroll should seamlessly integrate with accounting software, without the need to manually intervene.
4. HR functionalities
Employee leave, document management and aspects of employee management that directly correlate to payroll should be managed in one system, reducing the need to manually calculate, pull reports and switch between systems.
5. Desktop issues
Those who don’t embrace the cloud will experience payroll frustration every day. Accountants using desktop software for their clients have the pain of only being able to access payroll from one device, and only as a single user at one time. This means visibility restrictions for clients and lack of flexibility for getting work done. Non-cloud software also brings the issue of unreliable data backups, which could potentially breach GDPR requirements.
6. Ever-changing legislation
Payroll legislation is always changing, and traditional payroll software isn’t quick to keep up. Desktop software is updated much less frequently than cloud software, putting users at risk of inaccurate payroll calculations and running pay runs with outdated data.
The cure that tackles these pain points is technology that employs automation to eliminate manual tasks. This allows firms to confidently run multiple pay runs at any one time with no further actions required until the next tax year, making payday a better day. You’ll also find yourselves with more time on your hands to focus on providing advisory services to clients which subsequently drives revenue.
Make payday better with Director Pays
Director Pays powered by KeyPay is a cloud-based payroll system for accountants and payroll bureaux that is designed specifically to remove the manual efforts involved with director payroll processing. With a one-off set up, accounting firms can automate pay schedules, HMRC submissions including FPS and EPS, client reporting, and journal entries to accounting platforms. Our built-in engine also automatically calculates tax and National Insurance contributions.
As a cloud solution, Director Pays can be accessed anytime, anywhere, with no data backup issues if you’re not in the office. Save time and improve efficiencies.
Try Director Pays free, or download our white paper: How accountants can use technology to make payroll profitable.
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