Category

Blogs

Are You Optimistic For Future Business Growth?

By | Blogs | No Comments

Business growth is a worry in the mind of every business owner and trying to achieve steady growth can cause several problems. Having your finances under control and a clear vision for your business is a priority, but how can this be done?

Coleman & Co offer advice to all businesses in Lisburn, ensuring you have support for all financial needs. We aim to help every client achieve successful business growth.

Improving Prospects

59% of business believe that their prospects will improve in the next year. However, this isn’t going to happen overnight and making a significant improvement takes strong financial management. With one in three business saying their borrowing will also increase in the next 12 months, how can you continue business growth without having to owe too much money?

Whilst borrowing may seem like the easy solution to the majority of small businesses, it is not the greatest long-term option. If you are successful, it could work perfectly, but it is a big risk if your business does not take off with injected cash.

Is Borrowing Best?

In the last year, 38% of businesses believe access to finance has been improved, making it easier to borrow. Regardless of whether you are a start-up or well-established business, borrowing will always have its benefits. However, this does have to be paid back and could rack up expensive debts for your business. Borrowing can be a good option if:

  • Investment Is Required For Revenue
  • Reduces Risk
  • Revenue Outweighs Investment
  • Start-Up Costs Need Paid

If you are borrowing for the sake of having more money available, without making a positive cash flow, borrowing is not your best option. Many businesses can benefit from borrowing money, but it is not the right choice for everyone.

Budgeting & Forecasting

To plan for future business growth, it is essential that you budget and forecast correctly. 4 in 10 businesses fail to make the 5-year mark, which can often be due to lack of planning. Small businesses can often find it difficult to continue selling the same products for so many years and failing to budget early on could lead to your long-term demise.

Cash flow can become a major problem at any point for a business and budgeting should be completed constantly. By budgeting every part of your business and limiting your spend on unneeded items, you can build the amount of cash you have available in the future. By saving on a regular basis, if cash flow does begin to drop, you have the funds to reinvest into your business without a problem.

Your forecasting will ensure you are prepared for any changes to your cash flow. Whether you notice costs rising or revenue falling, you can always remain organised when finances don’t match your expectations. By creating a forecast, you will be prepared for this situation. You can then budget your business accordingly, ensuring costs will not outgrow your turnover.

Invest In Your Business

Business growth will only occur if you continue to invest in your business. Whilst budgeting is important to prevent overspending, you should still plan to inject your money back in. This is much more productive, rather than having your cash sit and collect dust.

By budgeting effectively, you will always have the money you require to invest and improve your business. With regular budgeting, business growth is always guaranteed, ensuring you will always have money available to your business.

Contact Us

If you would like to discuss the services we have available at Coleman & Co, contact our team today. We are happy to give information regarding all your requirements, advising and managing all business finances in Lisburn. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.

5 Tips For Organising Your Tax Returns

By | Blogs | No Comments

Whilst it seems like a simple thing to control, many businesses fail to organise tax returns before it’s too late. In the long-term, this could lead to hefty fines or tax investigations. Organising your tax records and returns in advance is the best route for your business, but how is this achieved?

Coleman & Co can help all businesses of any size organise their tax returns in the Lisburn area. No matter what you are struggling with, we can manage every aspect of your taxes.

Remember To Register

Tax returns are all about planning and failure to register will result in no tax returns being made. When you register with the HMRC, you will receive your logins. Whether you want a personal account or have set up a limited company or organisation, this will give you the account you need.

When taxable turnover has also reached £85,000 or you have started to employ people, you must register for tax. If you fail to register and try to sneak around tax returns, the HMRC will always find out! You should always consider telling the HMRC you haven’t registered for tax and they may treat your case more favourably.

Keep Your Routine

The best way to continuously record and track your tax records is to stay within a routine. When making regular sales, considering every transaction for tax should be completed and even one mistake could have a big influence on your final tax returns.

Every sale and every purchase should take into account the tax you are paying. By sticking to this routine every day, there are no surprises when your tax return comes around. All finances will already be accounted for and organised within your business. Stepping out of routine will only lead to tax being calculated incorrectly, which creates more work in the future.

Gather Your Documents

By creating a routine, it also means that all transactions for your tax returns should be well documented. Whilst you shouldn’t have to look at these documents all the time, it is important to keep them easily accessible.

Your tax records should legally be kept for a minimum of five years after the tax year they are used in. You may never need them again, but having them available will ensure there are no run-ins with the HMRC and any problems that do occur can be cleared up easily with a quick look at your records. Investigations can happen at any time to investigate any tax year, so keeping records handy should always be done.

Going Digital

Starting this year, tax information must be sent to the HMRC on a quarterly basis, with tax returns being completed online. As we live in a digital age, most businesses should be able to cope with the change of going digital. Digital tax returns could actually help businesses cut costs and time of tax returns, so it a good option to take.

Digital tax returns will also allow you to store your records for a long period of time, without having paperwork to deal with. Every business should be beginning the transition of going digital, with this being one of the best ways to successfully organise your tax return. With the help of digital tax returns, deadlines and accuracy will not be an issue.

Outsource Tax Returns

You may be very capable of filing your own tax returns. However, that doesn’t mean it’s the best option for your business. If you struggle with your tax returns, outsourcing is the obvious choice to ensure accurate returns before tax deadlines. This will prevent any possible fines or investigations being made and ensuring your taxes are completely accurate.

Even if you have no issues completing tax, outsourcing could still help you cut down costs with potential slip-ups, as well as saving time that tax returns take. Accountants will ensure all tax records are easily recorded and securely stored and your finances are always being taxed correctly.

Contact Us

For more information on the tax accountancy services we have available in Lisburn, call Coleman & Co. We are happy to discuss all requirements and advise you on any problems you encounter with tax returns. Call our team today on 028 9266 3599 or fill in our contact form to make an enquiry.

Simple Steps To Control Business Finances

By | Blogs | No Comments

Cashflow is often the most important thing for any business, large or small. Improving your finances must be done if you are failing to make a sustainable profit, but finding a formula to improve your business is no easy challenge. However, there are several steps you can consider to move towards a healthy profit.

Coleman & Co will help all businesses throughout the Lisburn area with their finances. No matter what advice or services you require, our team can improve your financial performance.

Chase Your Customers

The majority of your customers will make their payments on time and cause no hassle to your business. However, there will always be some clients who decide when their payments should be made. Even if this is just a small section of your customer base, every payment should be chased.

If you are failing to make a large profit, receiving all the payments that you expect will ensure your revenue matches your expectations. Whilst this may not be the perfect solution, it prevents too many customers missing payments. If this becomes a common factor, revenue will continue to drop. By chasing customers, you resolve the issue quickly and ensure payments are made on time.

Know Current Costs

Every business has expenses. Whether this is daily or monthly costs, it is important you know every detail and remain in control. Regardless of how little or large each cost is, by having the knowledge of your expenses, you can manage all costs effectively.

If you fail to manage your finances effectively, when costs rise or fall, you will be very unaware. This could lead to your costs increasing significantly without you being able to prevent this. By knowing your current business costs, you can create an effective budget to ensure you never overspend on a daily or monthly basis.

Plan For Growth

According to Bloomberg, “8 out of 10 entrepreneurs who start a business fail within the first 18 months”. Whilst some businesses may have enough cash to easily start a business, this is a worrying statistic for most start-ups. If you don’t have the right cash available to you, keeping your business afloat is the biggest challenge for anyone.

To be a success in the long-term, sometimes you have to take things slow in the short-term. Instead of trying to get your business to be the next big thing immediately, planning for growth can ensure your business doesn’t fail like many others. Budgeting from an early stage and planning for growth in the future means making an early profit much easier.

Managing Invoices

Another way to track your customer payments is by managing your invoices online. To stay in control of your own finances, using the best software gives you the platform you require. Invoice software not only allows you to send your customers their payments straight away but also means you can store and track their previous transactions.

You can use this to compare your current cash flow or ensure customers have made payments on time. The right software should always be installed for accurate and on-time payments or you should outsource to an accountant.

Your invoices are one of the best ways to track and record the payments your business receives. You should always have full management of your cash flow and invoice management will always assist.

Contact Us

For more information regarding the services we have available, speak to our team today. Coleman & Co will work throughout Lisburn to provide all clients with a personal and comprehensive accountancy service. If you require assistance with your current finances, we can always meet your needs. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.

Tips For Keeping Your Accounts In Order

By | Blogs | No Comments

Ensuring that your accounts are in order is crucial to the success of any business. Without organised records, it can be hard to conduct audits. With more spotlight falling on accountancy companies for poor audits, we have put together a few tips on how to keep accounts in order.

At Coleman and Co we offer advice and guidance on accounts preparation for our clients, ensuring that all paperwork is in order.

The Importance of Being Organised

This week it has emerged that KPMG, one of the ‘big four’ in accountancy, are being investigated for their financial audit of Bargain Booze owner Conviviality. In particular, the watchdog are looking into financial statements for the 52 weeks leading up to April 30 2017.

The FRC (Financial Reporting Council) have also stated that they are investigating another as yet unnamed member of the Institute of Chartered Accountants in England and Wales.

Last month another major accountancy firm PwC were fined £10 million for ‘totally inadequate’ financial audits. Whilst investigating the finances of BHS after it’s collapse, the firm have been criticised for their management of audits.

Audits are a big focus in financial news, demonstrating the importance of getting documents in order. With more pressure mounting on the documents kept by businesses, it is important to keep your documentation organised.

Preparing Your Accounts

There are a few things you can do to keep everything in order. Accounts do not have to be difficult to prepare and help to provide a history of a company. Along with this, they are also used when tax returns are being completed.

It is important to remember that keeping financial documents in order is a long-term process. It is far easier to do small amounts at a time rather than leaving it all to build up.

What are Statutory Accounts?

Providing copies of your statutory accounts to a number of people is a legal requirement. These accounts can often be referred to as annual accounts and offer an insight into your business, small or large.

The Government requires you to send these accounts to all shareholders, any person who can go to general company meetings, companies house, and the HMRC (HM Revenue and Customs). Different deadlines will be given for each of these to be submitted, so you should check up on this.

Statutory accounts must include a few things, such as:

  • Balance sheet – shows value of everything owned by the company, what you are owed, and what you owe
  • Profit and loss account – shows company sales, running costs and profit or loss
  • Notes about financial documents
  • Directors report (unless you are a ‘micro-entity’)

Any accounts submitted must meet standards set by the UK Generally Accepted Accounting Practice (UK GAAP) or the International Financial Report Standards (IFRS).

Using a Professional Accountant

An easy way of keeping your financial documentation in order is to use a professionally qualified accountant. Choosing an accountant that works with your type of business is important to ensure that they can correctly prepare any accounts. Having an accountant reduces stress, saves you time, and ensures that your business meets outlined regulations.

At Coleman and Co we work closely with the HMRC to save you time. Our trained accountants are able to prepare full annual accounts and help you with any tax returns you may have.

Contact Us

To find out more about our accountancy services, please give us a call on 028 9266 3599 or fill in our online contact form.

How Is Accounting Software Changing Small Businesses?

By | Blogs | No Comments

Not all small businesses have made the transition into using accounting software, but this is a process likely to happen. Accounting software offers several benefits to all businesses and is changing how businesses monitor their finances.

Coleman & Co can train all businesses to effectively use accounting software. No matter what requirements you have, we work throughout Lisburn to improve financial management.

Specialist Software

Many previous softwares that have been used for business accounting have had a range of features. Whilst some softwares do offer benefits as they can help with a number of processes, they often specialise in none.

If your accounting software does not specialise in any processes, whether this is payroll, taxes or cash flow management, it becomes very difficult to effectively manage your finances. Switching from traditional and manual software to specialist accounting software is always the best choice for your business.

As there are several accounting softwares to choose from, you have the tools to manage every aspect of your finances.

Use On The Go

Mobility is a big factor for every business and being able to access finances everywhere is a must. Whether you are walking back to your workplace or far away on a sunny holiday, accessibility is key. You never know when small businesses will require access to their finances and having specialist software available will ensure this can always be done.

Accounting software can be accessed from several different points, whilst also guaranteeing the complete security on the application. You can manage finances regardless of the issues that occur or what changes need to be made.

Security Updates

By using accounting software, your security should be guaranteed. Most software is already very secure and will also complete regular updates and bug fixes. Maintaining a high level of security is essential for all small businesses and using the correct software is one of the simplest ways to do this.

In a digital world, security should always be a priority as more and more threats are created. If you are still using manual or unprotected software, your security is not at the level it could be. This will not be an issue with accounting software, keeping all finances protected at all times.

Accuracy, Speed & Organisation

The efficiency of accounting software will always be superior to other, non-specialist software. Accounting softwares are purpose-built to be used for your small business finances, no matter what processes are completed.

Payroll and taxes can be completed accurately and quickly, leading to a more efficient process within your business. Managing your finances can be a time-consuming task, but the right software will always make this simpler. In addition to this, using accounting software will leave you with good organisation. As all finances and data can be stored, managing your finances regularly is much easier.

Improving Small Businesses

Finally, accounting software is changing small businesses for the better. By giving you a better chance to improve your financial management, creating a successful business with a positive cash flow is much more likely.

Staying in control of finances is one of the toughest tasks you will face and having the right tools available allows you to keep finances in check. Not only will the right software help you reduce your expenditure through good management, but it will ensure payroll and tax returns are always accurate.

Contact Us

For more information on accounting software, do not hesitate to contact our team. Coleman & Co will support all small businesses throughout Lisburn for effective financial management. Call our team today on 028 9266 3599 or fill in our contact form to make an enquiry.

A Small Guide To Budgeting Your Business

By | Blogs | No Comments

Minimising costs is one of the largest tasks every business faces. Whether you are one month, one year or one decade in, keeping costs low will remain a priority. However, finding ways of budgeting effectively can often be more difficult than you think!

Coleman & Co can help every business in Lisburn when it comes to budgeting. There are several steps you can make to create an effective budget and our team will always support you.

Understanding Your Cash Flow

Your current cash flow is the biggest sign you have that a budget needs creating. If you have a poor cash flow this could be due to high costs or a poor revenue. Either way, the easy option is to reduce your costs as revenue will not always rise easily.

By having a detailed cash flow report, you can view where your main expenses are coming from and where costs should be reduced. Creating and analysing a cash flow report should always be the first step in creating an accurate budget for your business.

Determine Fixed Costs

A big part of effective budgeting is knowing how much money must go out every month. Whilst some payments may be rewards and one-time costs, a lot of your costs can actually be planned for. By planning for the costs you know are going to happen, you have a good idea of how much revenue should be made and what additional payments could be made.

If you are struggling to work out what payments will be made, you can always look at previous bank statements. Record keeping is essential for every business and this can help you create your budget by seeing what payments have been made in the past.

Locate Least Important Payments

Budgeting may be easy for some businesses to simply lower their costs. However, others may have to completely remove certain payments meaning you no longer get the same perks you have now. Whilst you want to treat staff members and keep the morale within your workplace high, there must be a balance.

By deciding on which payments are least important to your business, you can begin to cut down the bigger costs within your business. Reducing one time payments and payments that have no real benefit to you or staff members will mean you can keep staff happy, whilst still putting a limit on your spend.

Allocate Your Budgets

Whilst start-up businesses may not have to think about this problem as much, bigger businesses should always consider allocating budgets to different departments within the business. This will help you keep a limit on the different sections of your business and stop anyone overspending.

The other benefit of allocation is finding which department can make you the most revenue whilst on a budget. If some sectors can offer high-performance at a lower cost, this is a big bonus. Budget could be increased from this situation, leading to a fair distribution throughout the business.

Long-Term Focus

If you focus all your efforts on short-term goals, it could have a negative effect on your business, leading to less money to spend in the future. By saving now, your long-term goals become much more achievable and attainable, giving you the best opportunity to be successful.

Whilst the majority of small and medium businesses make it past their first year, getting to the five and ten-year marks is what every business should look to achieve. Budgeting now will leave you with more money to spend in the future, contributing to greater growth. If you choose to spend and spend in your earlier years, barriers may arise in the future.

Contact Us

For more information on budgeting and how your business can create an effective budget, call Coleman & Co. We will support all businesses throughout the Lisburn area, ensuring you have the advice to succeed. Call us now on 028 9266 3599 or fill in our contact form to make an enquiry.

Essential Tasks Every Accountant Should Do

By | Blogs | No Comments

Whilst accountants can complete many tasks to help your business flourish, sometimes you just want the simple things. With every business, there are essential financial tasks that need completed and accountants can always offer their services.

Coleman & Co have great knowledge of all accountancy services and can offer our advice to all small businesses. Every business needs support and our accountants can always help with small and large tasks.

Helping Start-Up Businesses

Start-up businesses always need some support organising and allocating their finances correctly. To achieve your ambition, you will often have many other focuses when creating your business. Whilst your finances need to be organised and managed effectively, they may not be your priority.

Outsourcing to an accountant means you can focus on other aspects of the business during a period that can be difficult. Accountants that have experience working with other businesses know how to budget you effectively, ensuring costs are not too high when your business begins.

Record Keeping

Record keeping may not seem like the most significant task your business will face, but it is essential. Not only will record keeping help your business in the future, but it may be needed for several legal purposes. If your tax returns are inaccurate, your records will show the HMRC that your tax return is accurate.

If you fail to do this, your business could face fines and penalties in the future, not only increasing your expenditure but potentially damaging your reputation. There are many benefits to effective record keeping, allowing you to:

  • Compare Business Performance
  • Submit Tax Returns
  • Track Customer Payments

All these benefits could be massively beneficial to your business and allows you to improve future performance and revenue.

Management Accounting

As a business owner, there are several decisions you have to make that will impact your finances. Management accounting will not only advise you on what path to take but give you detailed financial reporting to help you manage your finances correctly.

Running your own business is one of the most difficult things to sustain. Without the right advice, your business could fail to achieve your vision and continue with a steady cash flow. Accountants are often used to manage your finances, but providing you with reports on the revenue of the business will help you make the right decision with your income. You simply cannot afford to waste money as a business and spending it wisely is essential.

Reduce Costs & Improve Revenue

Some business will choose to hire accountants to manage taxes and look after their finances, but the best accountants can offer so much more than that to businesses. Every business wants to reduce costs and improve revenue for the best possible profit. Accountants can be key to doing this and knowing your numbers will give you the best opportunity to reduce costs.

There are several ways accountants can improve your overall profit, with budgeting being a key factor. Whether you have an overall limit to your monthly spend or give certain departments in your business a maximum cost, budgeting is one of the best tools to use. Cash flow forecasting will also ensure your cash flow remains on track and finances are managed correctly, with little risk of making a loss.

Accountants can support every business with their finances, no matter what targets you set. We can always do more than just the basic tasks, helping with all essentials to make your business a success.

Contact Us

Accountants complete a wide range of tasks for all small businesses. If you would like more information regarding how Coleman & Co can help your business, do not hesitate to contact our team. We will support and advise all businesses throughout the Lisburn area. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.

5 Tips To Reduce Business Costs

By | Blogs | No Comments

Having an accountant is not only about managing your finances, but also helping you to reduce business costs. Whether you are an experienced or start-up business, new tips to help you save money will always help you succeed.

Coleman & Co can help all small businesses throughout the Lisburn area, offering tips to reduce business costs. Whether you require management or advice, our team are always happy to help.

Reduce Staff Costs

Using accountants is useful in more ways than one and it can also help reduce your staff costs. Whilst you are growing a business, saving money on staff will ensure business costs do not get out of hand. Employing too many staff members too early in your business could have a negative effect and easily lead to liquidation.

Your staff are the most important part of every business, however, there are many roles that you can complete yourself or use an accountant for. There is no need to employ staff for every job and finding a good balance will always save you money.

Using Software

Using the right software for all functions within your business will always result in saving time and money. Whether this is accounting software to manage finances or software for day-to-day tasks, it should always be used.

Accounting software will allow you to complete a number of tasks in your business, including:

  • Bookkeeping
  • Budgets
  • Cash Flow Forecasting
  • Invoicing
  • Payroll
  • Tax Returns

With many tasks available for completion using accounting software, this is always the best option for your business. Even if you continue to outsource the management of your finances, having this software will allow easy access and control. Software should be used throughout your business to ensure all tasks are completed easily.

Work From Home

As a sole trader, having fancy offices and workshop space is not a priority. Whilst it may be nice to have, working from home will help you keep business costs low. If you are a one-man army, working from home will also reduce travel times and costs of getting into your office.

Not only is working from home a big factor in reducing your business costs, but you should be over the moon about working from home. You can get up late, wear whatever you want and forget to wash your hair. Offices may offer more style, but there is little convenience for both you and your bank account.

Pay Efficiently

For both your staff members and yourself, paying efficiently to reduce tax costs can help save money. Different tax bands mean higher payments are made the more you earn, so keeping pay low could benefit you.

Whilst you should still be paying yourself and staff members a fair amount, trying to evenly pay staff and keep a certain amount of money in your business could help you reduce tax returns. Accountants can always advise clients to ensure you pay the minimal amount of tax necessary for your business.

Understanding Your Tax Returns

For many businesses, your tax returns will be one of the biggest payments all year, other than paying staff. To ensure business costs are reduced as much as possible, you should gather a good understanding of necessary tax payments.

This will not only mean you pay less on your company and personal tax returns but will also help you avoid potential fines. Businesses can receive fines for both incorrect tax returns and missed deadlines, so it is integral to stay organised.

Contact Us

For more tips on how to reduce business costs, do not hesitate to get in touch with Coleman & Co. We will offer support throughout the Lisburn area, always offering advice on your finances. Call us today to discuss the services we have available on 028 9266 3599 or fill in our contact form to make an enquiry.

Priorities For Start-Up Businesses

By | Blogs | No Comments

Start-up businesses can always use a helping hand and understanding your priorities can give you the best opportunity to be successful. As a start-up business, knowing your targets and objectives can help your business stay on course.

Coleman & Co support all start-up businesses and can always advise our clients on financial and business targets. With many years of experience, we offer expert advice to start your business perfectly.

Company Values

Every business should have targets and company values that need to be achieved. With 52% of employees in the UK saying they don’t know their own company’s vision, this should be sorted quickly. Start-up businesses should always have a goal they want to achieve at some point in the future.

Using your staff members to help contribute to these goals could also be a good choice. Having company values in place that your whole team relate to will always lead to a cohesive and successful business.

Financial Targets

Many staff choose to start their own business, allowing you to make more money for yourself. Having financial targets in place can help all start-up businesses and ensures you are working towards something. With cash flow forecasting, you can create an accurate and detailed plan for your business finances.

Cash flow forecasting allows you to create an estimate of the income and expenditure in your business. Using your plan for the business, accountants can help start-ups create forecasts to compare to the actual progress your business makes.

Keep Staff Happy

Whilst the majority of start-up businesses may just have one employee, it’s important to keep staff happy when you recruit. A survey revealed that 58.1% of staff want a good salary whilst just 22.4% want a nice boss. Not all staff are going to be fully satisfied, but finding the right balance should be a priority.

Having accountants organise payroll and bookkeeping will mean staff members are always paid accurately and on time. There are several factors to consider when aiming to keep your staff happy and achieving this will keep your business running smoothly.

Focusing On Business

Using an accountant could be the best move you make as a start-up business. Ensuring your finances are organised and that cash flow forecasts are created are just some of the features that accountants can offer. As a result of outsourcing your financial management means, you are able to focus on business.

Start-up businesses must have complete control of themselves to prevent failure. With the additional advice from accountants, this ensures you have a great understanding of business performance and that there is minimal risk of failure. Organising and monitoring finances can be extremely time-consuming. Having the helping hand of an accountant will always allow your business to flourish!

Limiting Expenditure

Start-up businesses will not always have a large budget to play around with, so limiting your expenditure must be done. With 4 in 10 small businesses failing within 10 years, it can be a big challenge to save your money. However, without saving effectively and budgeting, your money will soon begin to disappear.

Therefore, your business will not have enough money to spend, preventing growth and meaning that your business cannot achieve your vision. Limiting expenditure is the first thing your business must do to ensure growth, and it is never too early to begin budgeting.

Contact Us

For more information regarding the services we have available or how we can assist start-up businesses, do not hesitate to contact our team. Coleman & Co will help all businesses in Lisburn, offering advice for all financial and business needs. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.

What To Consider When Creating Payroll

By | Blogs | No Comments

Payroll can be extremely time consuming and depending on staff working hours, the staff you employ and bonuses and deductions, payroll is constantly changing. To effectively create payroll, there are several factors you must consider. These factors will ensure payments are always perfect.

Coleman & Co can support all businesses throughout the Lisburn area. Whether you require help with payroll or any other service, we will always offer our advice.

Date & Amount

The date payments go out and the exact amount your staff members receive is what payroll will include. This information must always be recorded, no matter how little the payment is or what the payment is for.

All payroll must consist of the date staff members were paid. This ensures you are record keeping effectively and that any queries can be easily answered. Additionally, if staff members have a problem, bookkeeping is the best way to ensure any issues are resolved.

Taxation

As well as your business, all staff members you employ must pay tax. Unless they are underneath the tax threshold of £11,850 per year, you must ensure staff tax is deducted correctly. To complete tax returns correctly, different staff will often have to make different tax returns. As you should tax the income you make, completing tax yourself is often the best option to make sure taxes are paid correctly. The tax rates for 2018 to 2019 are:

  • £0 – £11,850 per year – 0% tax
  • £11,851 – £34,500 per year – 20% tax
  • £34,501 – £150,000 per year – 40% tax
  • £150,000 or above per year – 45% tax

You must always adhere to tax laws and make sure your business makes accurate tax returns every year. If you fail to do this when organising your payroll, it could lead to large fines, therefore both you and your staff members could be punished.

Bonuses & Deductions

Part of payroll that you must always consider is the bonuses and deductions your staff are qualified for. Whilst you may not enjoy deducting staff wages (or you may love it!), it is a part of staff payments. Deductions could be made for sicknesses and absences or staff members may qualify for statuary payment. This means their wage will change so you must always complete your payroll with great attention.

Staff members will not receive the same wage every month. Whether this is due to hours worked, weeks in the month and the timing of your payment, it must be monitored closely. Incorrect payments could lead to disputes in the office so bonuses and deductions must be done accurately. Keeping track of all staff bonuses can be time-consuming, but an essential when creating payroll.

Payroll Schedule

Your payroll schedule will prevent payments ever being completed on the wrong date, as a result, your staff members remain happy. By creating a payroll schedule, this ensures any bonuses, pay expenses, deductions and taxes are already considered. Unlike your actual workload, payroll isn’t something that should be left to the last second.

With a schedule, you and your staff members know exactly when they will receive their wage. Failure to meet this deadline will lead to lots of unhappy staff members, so it’s important to get it right. Another reason to create a schedule is to assure staff they are paid by a certain date, without issues. Correct payments on the correct date will always lead to happy staff.

Contact Us

If you need advice or support creating your payroll, do not hesitate to contact Coleman & Co. We offer guidance to all businesses throughout Lisburn, in addition to effective pay management. Speak to our team today and call us on 028 9266 3599 or fill in our contact form to make an enquiry.