Payroll software: what and who?
11 July, 2017
New business owner? Congratulations, you're now the payroll department. Deep joy.
Most people who leave the world of paid employment to set up their own business soon realise something pretty quick – they have swapped one job for two! Not only are they doing their ‘thing’ during the day but they also have to squeeze in another job or jobs and this includes being the money man or woman.
It’s vitally important to keep a close eye on your finances so that the business stays healthy. There are also those bits of business that you have to do; VAT, tax returns and payroll. Even if you are a one person limited company, you still have an employee (that’s you by the way) and have to do the payroll. This has become more important with the introduction of workplace pensions or auto enrolment. If you don’t keep on top of this, you could be looking at a very big fine.
Fortunately, there are several online software tools that can help you deal with this fast and accurately. In fact, in recent years the UK has seen some very good small business accounting tools launch that pretty much do what you could’ve paid a booker and accountant to do. My small business with 6 employees used to pay several thousands of pounds a year for something software now does for £30 a month.
You can get software that just takes care of the payroll or something that does that and a whole lot more such as:
Send invoices and chases people up if they don’t pay.
Talks to your bank and reconciles your accounts.
Does the VAT and sends it to HMRC.
Does the payroll and also sends the monthly returns to HMRC.
Looks after expenses, bills, sends estimates and produces reports for anyone who’s interested.
Our top picks: