Five Tips for Better Payroll Management

When a company begins with a relatively small number of staff members, its payroll processes can be straightforward. There are few complications and regular, exact tasks can typically be managed with only a single member of staff. As the business begins to grow, however, expanding its operation, its number of clients, and growing the size of its workforce, these processes become more difficult to manage. As it does, risks, such as misdirected funds, missed payments, and tax office penalisation, become more likely to occur.

Most business benefit from reviewing their payroll operation and doing so annually. However, while scrutinising processes can both reveal errors and improve efficiency, understanding how to implement effective change can be difficult, even for an experienced business owner. As such, we have collected five pieces of advice aimed at improving and affecting better payroll management.

Minimise Paper

Aside from being a greener endeavour, removing as much paper as possible from your payroll process, prioritising digital and cloud-based payroll management is an incredibly effective way of simplifying your operation. Additionally, trying to organise both digital and paper-based information, working to correlating the two, is likely to result in mistakes.

Update Your Software

Payroll software is a competitive market, which is beneficial for the user. Your payroll software should work to make your process easy and efficient, with ongoing development and regular updates issued to the software. If it does not, then it may be worth considering an alternative program, one that better caters for your specific operational needs.


Depending on your current payroll structure, as well as the size of your business, it may be in your financial interest to outsource your payroll department. For many larger businesses, it is far more cost-effective to seek an external payroll company instead of maintaining and training their own internal department. The financial operation of independent contractors may also benefit, such as with umbrella payroll from People Group Services.

Train Your Staff

As tax codes change, software is updated, and businesses grow, the staff overseeing your payroll department will need to adapt. Without regular training, your staff can fall behind, leaving both you and your employees vulnerable to pitfalls and penalisation.

Those who subscribe to payroll software might be able to access certain, typically annual, courses that review the program’s operation. Elsewhere, many payroll training courses are widely available both online and locally.

Simplify Your Operation

As businesses develop, they can slowly form bad habits. Enabling various payroll schedules, such as by allowing certain payments to be made monthly while others are weekly, may lead to unnecessary complication and, in turn, business costs.

When reviewing your payroll operation, which should be done at least once a year, be sure to consolidate actions and simplify the tasks at hand. By making your payroll operation simpler, it will not only be less prone to errors, but it will be easier and more efficient to run, meaning that, in the long run, you will be saving money and time, benefiting your entire business.