16/11/2011

By Melanie Dawson, Marketing Co-ordinator Sage UK Ltd

It’s probably common sense that, if you’re not running a healthy payroll system, there are going to be side effects to your business. By a healthy payroll system, I mean running reports on time, paying your staff on time, handling sick pay, maternity pay, holiday entitlement, etc.

So what are the side effects? Well have you ever not been paid on time by a company or, had your pay miscalculated? Imagine how you’d feel, when you’re expecting the money coming in, and whoops your overtime has been missed off, or there’s been a mistake in what you’ve expected to go into the bank. Even paying your employees a day late can cause all sorts of issues for them, such as missing mortgage payments, car payments, being charged overdraft fees, not to mention missing that all important night out in town!

Joking aside, if you end up disgruntling your employees, then the repercussions can lead to you losing some talented people within your firm. Not to mention word getting round that you’re not the best employer to work for, making it harder for you to recruit.

On another note, not recording simple things such as holiday taken, could end up costing you if someone ends up taking additional time off than they’re entitled to. Even recording absence means you can run a report off on the total number taken (you could use an HR system for this side of things and integrate it into your payroll). Meaning you can take a look at what it could be costing you in the long run, and allowing you to make any alterations to help say reduce sickness. E.g. Is there something relating to the workplace that you could improve in order to help reduce absence?

So, now I’ve painted all the doom and gloom, look on the bright side, it’s time to get something in place and make sure you’re keeping those all important people happy. There’s a multitude of choice from running your own payroll software system or getting someone else to do it all for you such as an outsource service or accountant. It’s a lot simpler these days than having to run your payroll manually and you’ll be surprised at how little it can actually cost.


Sage not only have software that you can buy outright and have support for, but we also offer annual licence plans to enable you to pay on a month by month basis. We also run an outsource service where we can do your payroll for you, so all you have to do is get on with running your business.


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