All business owners know how tedious, stressful and boring managing the payroll system of a business can be. There are no short-cuts in doing payroll services. It has be accurate and it needs to be on- time. It’s no secret that every business needs to be on top of their payroll services; else it can get out of hand.
Regardless of the size and nature of your business, it pays off to have a structured and organised payroll system. Below are some tips by reputed accounting firms in Dubai to help you manage your payroll services efficiently:
Payment Cycles: Determine what the salary schedules of your employees are- weekly, fortnightly or monthly. Most businesses like to have a common pay date and have standard payment cycles.
Type of Employees: Classify if you have different type of employees – full time, part-time and contractors, Are all of them have standard working hours or are they on different shifts? If they are on different shifts do they have after-hours or weekend rates applicable.
Use Technology: There are many smart payroll softwares available now and it is always a good investment in the long run. Using a reliable software will save you time, automate certain processes and ensure there is a central repository of information making it easy to store and access as required. This will also assist in tracking historical data and will reduce errors.
Have simple Processes: Don’t over-complicate your payroll services as it can get messy. Keep it simple yet try to capture as much detail as required for its accurate and efficient processing. Also only restrict the authority levels on the payroll services to the financial teams or the finance officer. This will provide for personalized accountability and good governance.
Employee Benefits: Check if all or some of your employees are on a benefit or reward scheme which needs to be credited into their salaries. Also check if there are any entitlements and allowances provided which include-housing, airfares, insurances, child care or phones and laptops. Annual leave benefits, holiday pay, gratuities and long services leave also need to be calculated accordingly.
Calculate Deductions: Maintain all records of any employee deductions which need to be processed such as sick and personal leave, unpaid leave or any borrowed monies.
Have a budget: Always pay attention that your salaries and payroll costs are aligned with your operating budgets so the business does not suffer from unexpected surprises. Plan for hiring additional resources in advance so the financial team is better prepared.
Why not get professional advice on how to best manage payroll services for your business from leading and experienced accountants in Dubai?