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Payroll management systems

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trade-ink-payroll-300x238 Payroll management systems

Payroll systems

This blog looks at online payroll systems and the benefits of using them in your business.

Payroll systems are an easy way to manage your employee pays and PAYE obligations.

Depending on the number of employees an organisation has there is a system to suit.

Xero has its own payroll system available as an extra feature. I recommend Xero’s system to clients with 5 or fewer employees. It does everything you need. It takes care of PAYE, KiwiSaver, ACC and student loan calculations. All the information is available in a report format for easy uploading to IRD.

The monthly subscription is $10 plus an extra $1 per employee. A good cost effective solution for managing a smaller numbers of employees.

Other payroll systems like iPayroll I recommend to clients with 5+ employees. It has added features that Xero doesn’t offer. The good news is iPayroll and most online payroll systems will integrate with Xero.

The key benefit of iPayroll’s system is the banking and IRD payments. It will manage employee wage payments (bank transfers). Handle payments on your behalf to IRD for PAYE and KiwiSaver. Or, you can choose to manage this yourself. I recommend iPayroll for businesses managing a large number of wages in a payrun.

iPayroll is more expensive than Xero. But the time savings benefits should be factored into the cost.

iPayroll Pricing Structure

The pricing below is for iPayroll, utilising their bank management and IRD payments:

  • 5 employees – weekly payrun $13.25
  • 5 employees – fortnightly payrun $21.00
  • 10 employees – weekly payrun $22.00
  • 10 employees – fortnightly payrun $29.75

Businesses should consider using a payroll system. It’s an effective way to streamline payruns, PAYE and KiwiSaver. Taking care of employee tax obligations, leave requests, ACC leave and holiday pay is made easy.

Most systems have employee logins. Allowing employees to check payslips, apply for leave and view their earnings information.

No matter what size the business a payroll systems will save you time.

Business systems that pay dividends

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trade-ink-business-systems-300x239 Business systems that pay dividends

Great business systems are a must in any business.

This blog explores the benefits of having great business systems.

We’ve all heard the saying “work harder not smarter”, but what does that actually mean?

For many people they spend all day everyday slogging it out in their business, juggling a multitude of jobs in a day.

 

 

What would their day look like if they had improved business systems in play?

  • It would run a lot smoother
  • They would have more leisure time
  • Reduced stress levels
  • Increased productivity
  • Time savings
  • Efficiencies lead to increased profit margins

Good systems main purpose or goal is to achieve:

  • Remove or reduce repetitive tasks
  • Quicken up the time it takes to perform a task
  • Simplify a process
  • Cut down double handling

Identify what tasks in your day consume the most amount of your time. This will allow you to seek out solutions.

Sometimes this can be easier said than done. If you don’t know what you don’t know it’s hard to know what resources are out there. If you don’t know what resources are out there it’s also hard to know who to ask.

I recommend talking to your bookkeeper or accountant. But again, be mindful that even they might not have experience in your industry.

In a previous blog I wrote about the benefits of choosing bookkeepers with experience in your industry. They may have system solutions that fits your industry requirements.  https://www.tradeink.co.nz/bookkeeper/

A builder approached me recently wanting help with a job tracking system recommended by his accountant.

The issues he had was the system was not designed to meet the specific needs of a building business.

It simply doesn’t have the functionality to track material and labour on a job. I could not help him, there is no magic wand I could wave to help him.

That’s why it’s important that you seek help and advice from the right people. The right system is critical.

Use of technology to improve systems.

There are lots of very good systems out there now days, many in the form of technology. Technology systems are well worth considering.

If you’re not use to using technology it can be a very scary thing. But I can guarantee you that if you don’t start you will never develop basic technology skills. Most technology solutions are designed to be user friendly. If they weren’t they would be too hard for the average person to use and the developers couldn’t make money selling them.

Once you start making changes in your business and install new systems it will pay dividends. You will gain increased productivity, reduced stress levels and greater confidence in your business.

Advantages of hiring a bookkeeper over an admin employee

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trade-ink-bookkeeping-300x169 Advantages of hiring a bookkeeper over an admin employee  Why hiring a bookkeeper is a good first step over an administration employee.

This blog talks about the pitfalls of employing a part time administration person verses hiring a bookkeeper.
 
There comes a time when small to medium sized businesses need a part-time admin person. It’s a great position to be in, it means your business has grown and you need help.
 
Many business owners immediately opt for the obvious choice and hire a part-time administration person. It seems like the most cost effective and easy solution.
 
You write up a brief job description and post it to TradeMe. Applicants send you their CV’s. You review the dozen or so CV’s and decided on 2 or 3 to interview. After the interview process you choose the best candidate for the role.
 

Sounds simple doesn’t it!. . . .

 
Employers new to recruiting can find the recruitment process very stressful. Pressure choosing the right applicant is hard enough. But what makes it harder is when you don’t actually know what tasks and duties they should be preforming.
This is a very real problem for builders and tradies I have dealings with.
They don’t know what skill set or experience the person should have. Ultimately they end up choosing the wrong candidate for the role.
 

A couple of examples I have come across are;

A paid administration employees requesting my help to solve a simple Xero issue.
I’ve had administration employees come to my Xero seminar and gained a heap of knowledge around how to use Xero, they should have already known about.
 
A tradesmen who employs his sister at $50 per hour cash to run his business. His accountant manages his GST compliance and another person manages his weekly payroll. I know for him the cost of using all 3 of these different services will be more expensive then using one bookkeeper who can preform all of these tasks.
 

These examples scream the wrong person is being paid to preform the role!

 
Business owners need to move away from the idea of employing a admin person is best. Having an administration employee does not necessary mean greater control. Nor does it mean you gain a higher degree of confidentiality around your business. Most bookkeepers and virtual assistants will have professional standards they adhere too. They know maintaining client confidentiality is important. Having their clients trust and confidence plays an important role in the success of their own business.
 
My suggestion would be explore the possibility of using a bookkeeper or a virtual assistant before you decide on recruiting a paid employee.

What role does a bookkeeper play in businesses?

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trade-ink-bookkeeping-300x169 What role does a bookkeeper play in businesses?   What is a bookkeeper?

This blog gives you an overview of what a bookkeeper is and the role they play in businesses.
 
A bookkeeper provides day-to-day administration support to small – medium sized businesses. Their main focus is on keeping your business transactions and records up to date.
 
Now day’s bookkeepers will align themselves with online accountancy software system, like Xero. This allows them to work remotely as a virtual assistant. Some bookkeepers do provide a service working from their clients location.
 

What’s the difference between a bookkeeper and an accountant?

Accountants main focus is on preparing end of year financial returns and lodging them with IRD. They provide more in-depth business and financial advice and assist with legal entity structures.
 
Because accountants and bookkeepers play different roles in the success of businesses you can use both.
 

Why you should use a bookkeeper?

When you hire a bookkeeper you are essentially buying back your time!
 
The big killer for most small – medium sized businesses is juggling everday tasks. By outsourcing your administration it allows you to work on generating income. A business makes money from selling their products or services not doing paperwork.
 
Some bookkeepers specialise in specific industries, such as hospitality, retail or trades. Choosing a bookkeeper familiar with your industry will have added advantages. They will have an indepth knowledge of your industry already. They will understand your business needs a lot faster, more than likely they have seen and overcome many of your business challenges with other clients.
 
At Trade Ink we focus on the building and construction industry. This means we not only help our clients with their book work tasks, but we provide extra support. Health & Safety and building compliance is a big part of running a building business. For many of our clients this is another consumer of their time. We have the knowledge and expertise to mange these for them.
https://www.tradeink.co.nz/bookkeeping/
 
That is why choosing a bookkeeper who has knowledge in your specific industry can be very handy. The additional value you can gain will help excel your business.

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