When you start a new business, it is an exciting time and it is also nerve-wracking. Exciting because you are looking forward to making a lot of money (otherwise why start a business?) and nerve-wracking because despite what you know about the products or services that you offer, and the fact that you may have been doing it for years as the employee of somebody else, you don’t actually know if you will succeed.
Worse still, if you fail to take on new customers or clients as you try to get your business off the ground, you are not going to get a pay cheque at the end of the month. It’s that simple :no customers, no money. Around 80 per cent of UK companies fail within their first year and, according to the latest figures from the Office for National Statistics, only 42.4 per cent of businesses started in 2013 were still trading five years later. Scary, huh?
Looking on the bright side, and assuming your business does get off the ground and begin to succeed, you will then need to start taking on employees, because if you are successful, you won’t be able to handle everything yourself. Furthermore, the faster your business grows, the more employees you will need. And the more employees you have, the bigger your payroll becomes. And the bigger your payroll becomes, the more complex it gets.
This is because you will have different employees doing different jobs at different pay rates. In addition, this means that these employees may as get sick, become pregnant, need holidays, do overtime, earn commissions, get bonuses and have some state benefits. What all of that means is that your payroll is going to become very complicated because there are so many different calculations to do and so much to bear in mind when you are working out an employee’s pay at the end of the month. You might pay your employees on a weekly basis, so you have to do this four times a month instead of once.
Then there is also the question of taking on new staff, also at different rates and employees leaving. In addition to all this, you have to provide them with a pension scheme and this can get very complicated on its’ own with all the different rules and regulations about who can and can’t join, how old they are, how much they earn, whether they want to opt out, opting them back in automatically and so on.
This is the reason that so many businesses today, small and large, choose to use payroll outsourcing in the UK rather than keeping on the DIY route. This is particularly the case when it comes to SMEs because in many cases, they don’t have sufficient employees to justify a full-time payroll supervisor, so they have one of their other employees take on the task as a part of their functions within the business. Since they are not specialists in all of the various twists and turns of payroll, this can mean that they can make mistakes which can cost your business money.
If you are looking for payroll outsourcing in the UK, this is precisely what we can offer you at Pay Check. No matter how large or small your payroll, you can get rid of the whole ghastly business and hand it over to us. This will give you the peace of mind that everything on your payroll is correct and compliant with the law, and free up a lot of your time so that you can get on with expanding your business.