If you employ staff payroll is a large part of your business admin and, like other financial tasks, you must report on it as part of your financial year-end reporting. As the start of the new Tax Year comes around again in April you or your accounts team will be looking at your Payroll reporting anyway.
What is it?
Payroll is run separately from your accounting, so your year-end payroll report involves taking the data already in your Payroll Bureau system and moving it over into your accounts system. Some systems will have integrations that allow the information to be transferred automatically and some will need you (or your bookkeeper) to transfer the data manually. Once they’re satisfied the data is all present and correct your bookkeeper will also produce a payroll summary that goes to your accountant. This saves your accountant time (hence saves you money) when compiling your financial year-end reporting.
Why do it?
Payroll is a complex activity that includes many different elements, so there’s a high probability a few small errors will have crept in over the year. You’d be surprised how often PAYE payments are allocated to the VAT accounts, for example.
It serves as a check that staff have been paid properly and also that HMRC have been paid the correct amounts through the PAYE scheme. You don’t want to end up paying HMRC more in VAT than you need to or be faced with a fine for an incorrect submission. It’s like an annual reconciliation of your payroll with your actual transactions and account activity.
How can a bookkeeper help?
Your year-end payroll report requires a series of checks are made to ensure all the information about staff payments, PAYE, pensions and any other staff benefits have been accounted for correctly. These are exactly the kinds of tasks that bookkeepers are trained for.
A good bookkeeper will help you get the data out of your payroll system and into the right format for your accounts. They will quickly spot any gaps or discrepancies and pick up anything that’s been categorised incorrectly because they know the systems and know what they’re looking for. They’ll also be able to tidy things up and put things right, saving you any worry and stress.
Another major benefit of having a bookkeeper help you with your financial year-end reporting is that they work closely with your accountant. A good bookkeeper will file the information required and provide reports that reduce how long your accountant needs to spend on your year-end reporting.
Are you confident you’ve got enough support with your financial year-end reporting? We’re always happy to have a no obligation chat and answer any questions you have: call Diane on 01825 763378 or email firstname.lastname@example.org.