Updated: Apr 7, 2020
Just starting a new business or taking the next step and employing staff to help your business grow. Well, I have a few tips that can help your business excel.
We have all seen recent news reports of Companies underpaying staff, and it is widespread. Still, it comes down to the business being on top of and responsible for their actions.
Whether you are a small or large business, they are the same - it is mainly the cash flow which isn't. Where a large company can fix underpayment mistake, usually a small business could put itself out of business by doing so.
Here are three tips to stay on top of Payroll
1. Implement a Scheduling/Payroll System that connects to your Accounting Software.
If you have multiple staff working different times & require different rates of pay, this is essential.
Scheduling & Payroll system have changed my life. Instead of getting random timesheets via different channels or trying to tally these up for more than one staff, scheduling software can help streamline your business.
How does it work?
It allows you to create a rosters/schedule for your staff; it also create timesheets for a while they are at work.
You can forecast your costs of future shifts to make sure it is in line with expected revenue.
GPS can be enabled if you have staff on the go or they are working a one in an office, for security and to reduce time theft. You will know exactly where your team are!
On a daily, weekly or fortnightly schedule, you can approve the timesheets to make sure they line up with the rosters or any leave used.
Fantastic for keeping you compliant with Fairwork. As long as you review it yearly and make sure you have entered the correct wages for your industry.
I recommend Deputy; it works well with Xero & MYOB Accounting making it a powerful tool for your business.
Starts from $3 per person, per month.
2. Ensure you review wages each year in June.
Fairwork releases updated Award Rates for industries to comply with end of June and it is your responsibility to make sure you are on top of this.
If you are ever uncertain on how much you have to pay, do not hesitate to call Fairwork, they will help you work out what industry you belong to and min rates of pay you have to pay.
Every time I have been in touch with them, they have been super helpful, and they also provide you with a lot of business support on their website. Please make the most of them today.
Always take your payroll and employees seriously. Please do not leave this to last minute. Make it a priority, and it will never come back to bite you.
It is simple. Every year wages will go up!
3. Make sure to put aside PAYG & Super each pay period.
I recommend opening up several bank account to separate money for future expenses. Most banks provide fee-free business accounts which makes this super easy to implement.
Rule of thumb is to ensure you put aside money for Net Wages + PAYG + Super every time you do payroll. Organising your payroll will help you stay ahead of the monthly or quarterly payments.
It will give you an accurate indication of what your staff are costing you as well, providing you with a better understanding of your actual cash flow.
Don't bury your head in the sand with this one.
Not sure how to implement the Schedule/Rostering system to help with your payroll? Smartful can help you implement this into your business. Request a free consultation to discuss.