Last year was tough for everybody, regardless of whether it was an SME or a large organisation. The COVID-19 emergency without a doubt carried a huge number of financial difficulties. Whether that be from staff shortage, working from home or recently set out guidelines by the UK government; these difficulties gigantically affected the payroll processing for SMEs.
Now, we can look towards a better 2021 with further developed cycles, prevalent payroll software, and a comprehension of the significance of the payroll.
Here we have mentioned 5 payroll trends to check out in 2021.
#1. Making the payroll process more agile
A major concentration will be on making the payroll interaction significantly more agile. Quicker and simpler payroll cycles can be accomplished by using two significant things: faster payments and automation.
These real-time quick payments are a huge improvement to the typical Bacs transmission, which in general require three days to process into bank accounts. Faster Payments mean the payroll team will be able to restore those three days to proofread to remove potential payroll mistakes.
#2. Automation will sustain payroll processing
Automation is not something new in the field of accounting but when it comes to payroll this will be a “new normal”.
Usage of automation can likewise carry many advantages to small businesses, particularly to those still dependent on old-fashioned paper-based payroll measures.
Whether it’s error notifications that decrease the danger of expensive over-payments, automatic bulk uploads of annual bonuses or automatic recalculation of sickness entitlements; not just automation saves time as well as further develops precision and consistency by lessening finance blunders.
#3. The use of cloud technology in payroll has grown
Just like the case with various cloud-based applications, cloud-based payroll tools have seen immense growth lately, with 38% of SMEs presently using the cloud, as per CIPP. This steady development proposes that 2021 is probably going to be the year that cloud-based payroll turns into a business fundamental. With cloud-based accounting, your staff can access the reports from anywhere and any place. A more proficient, adaptable and coordinated method of working.
Payroll teams can access real-time data and give their feedback for better decision-making and accurate reporting.
#4. Data security and compliance necessary to support remote working
Each organisation holds delicate and personally identifiable information, and most of this is inside payroll and HR frameworks. Payroll groups handle employee information every day and have an obligation to cut down chances for information to be seen by some unacceptable individuals or affect somebody’s protection.
Having solid data security and ensuring data compliance should be the main concern and trend for payroll trends in 2021.
Numerous companies are searching for additional insurance, like utilizing two-factor authentication (2FA) for communication and internal systems. Utilising additional security features is extraordinary for fortifying the username and password model. It’s an additional layer of insurance to ensure online records are secure.
#5. Furlough Scheme
The furlough scheme has been extended until September. As numerous SMEs will battle to get back to their past standard of business, this scheme will help them as they improve their client base.
As a business, you should be ready to pay your worker’s wages. You can expect this by surveying how you would create adequate income to make everything back on track. Expert payroll services providers can assist with giving continuous information and projections to assist you with settling on the best choices for when the furlough ends.
To sum up:
Albeit 2020 is behind us, obviously the effect of COVID-19 will keep on impacting payroll trends all through 2021 and more.
It’s taken a worldwide pandemic for payroll processing to acquire the consideration and understanding that it genuinely needs, and this change will be further developed by payroll tech, employee training and by leveraging a Payroll Service provider like Zyla Accountants.
To discover how Zyla Accountants can assist with supporting your payroll processing all through 2021, reach out today.
0208 089 5177
Also read: Caroline is the newest member to join the Zyla Accountants team!
Guaranteeing your business is financially proficient is more than just reducing expenses. Getting the best performance with the least waste requires customary audits & reviews of cycles, proper cash flow, and the right technology. For small business finances, some entrepreneurs might have knowledge in maintaining a business, many can be naive. As per a study done by Startups.co.uk in 2019, 50.6% of entrepreneurs surveyed believed that the number one barrier of a person while starting a business in the UK is handling finances.
When you accurately handle your financial situations, it sustains your company and reduces the chance of failure in the long term. Here we have mentioned some of the top tips to make your SME financially profitable and revenue-generating.
Continuously inquire “why?”
When your business has certain cycles, providers, expenses, clients, and different methods of doing business that has ‘always been like this’, then, this present time is the opportunity to put them under the magnifying lens.
If you’re investing a ton of energy pursuing payments and seeking business from clients that aren’t solid or don’t spend enough, then, at that point maybe it is an ideal opportunity to release them.
Your energy and time would then be able to spend on winning and supporting more profitable customers which should counterbalance any transient misfortunes.
Work together and communicate
We should urge our staff members to share data, team up on undertakings and communicate more. For instance utilise free doc sharing applications like Google Docs, where your staff can collaborate in real-time that can be seen by everybody.
Empower a culture of input and open conversation. This will guarantee any regions that require improvement can be red-flagged right on time, guaranteeing that there is no pointless wastage going on behind the scenes.
Outsource accounting and bookkeeping
Outsourcing accounting is an approach to get all the necessary help and supervision of accounting specialists when you need it.
This is particularly significant as your business scales and develops. You’ll get a learned team of expert accountants and bookkeepers. They use cloud-based accounting tools, so you never have to worry about your small business finances.
Improve cash flow management
For the constant growth of your business, good cash flow management is a necessity. As per a study done by Intuit Quickbooks, 57% of SMEs faced cash flow issues in the UK last year. Proper cash flow forecasting helps you stress less about the wrongdoings that’ll occur in the future. It also maintains a steady cash flow between customers and suppliers as well.
Recently, Zyla Accountants partnered with Fluidly to assist small business owners to get instant cash for streamlining their processes.
Review tax payments
“If you have trouble saving for your quarterly estimated tax payments, make it a monthly payment instead, that way, you can treat tax payments like any other monthly operating expense” – said Michele Etzel, CEO at Bayside Accounting Services.
With the current and old financial summaries, having an extensive business plan for the future will expand the organization’s believability.
Written plans help purchasers or investors with the affirmation that your business knows where it is going. In any case, it’s significant that any conjectures are upheld by definite presumptions.
How can Zyla Accountants help?
As a Xero-certified accounting and bookkeeping firm, we assist our clients in their accounting-related work. Offering guidance to work on the growth of their business.
We are committed to aiding small businesses to settle on more data-driven choices. Also, we streamline their organization’s workflow without draining their every last cent.
For more information:
+44 7535 6176 81
Your company might be considered dormant in case it isn’t as of now doing any business and it doesn’t have some other kinds of revenue, including income from investments. There are various reasons why a company might be dormant. A company can be dormant from the second it’s established or an existing trading company may become dormant.
Although, ‘dormant’ can mean various things, subject to whose perspective you are looking from. For instance, a company might have a dormant status for corporation tax purposes, yet it may not meet the stricter definition used by Companies House.
In the event that your company is named dormant (not trading), you don’t have to document full accounts, nonetheless, you are needed to file dormant company accounts.
Dormant company conditions for Companies House
Dormant organizations that have never traded, must file their accounts online utilizing the Companies House WebFiling service. Accounts for a dormant company should incorporate the accompanying:
- A balance sheet including specific statements over the director’s sign and their printed name affirming the company was dormant for the whole financial year.
- Any past financial year’s figures for examination purposes; and
- Certain notes to the balance sheet.
Your annual accounts should be sent to Companies House within 9 months after your accounting reference date (ARD) which is the end of your financial year.
Despite this, you can also file the accounts on paper with Form AA02, which you can download here.
Annual confirmation statement
Regardless of whether it is active or dormant, every company should set up an annual Confirmation Statement every 12 months. The reason for this report is to give a depiction of significant company information at a specific date (the ‘confirmation date). Companies House utilises this data to guarantee that the enrolled details are exact and refreshed.
The data that you should put on the statement incorporates:
- Name and registered number of the company
- Registered business location
- Details of director
- Details of company secretary
- Single Alternative Inspection Location (SAIL address)
- Location of statutory records
- Information of shareholders or guarantors
- Information held on the Register of People with Significant Control (‘PSC register)
- Standard Industrial Classification (SIC) code(s)
- Details about share capital
The due date for preparing a Confirmation Statement is the anniversary of the ‘made-up’ date of the last statement. You’ll have 14 days after this date to send your Confirmation Statement to Companies House.
Will my dormant company need to settle tax?
Your dormant company won’t have any tax liabilities in case it is idle for the entire fiscal year. Moreover, there will be no compelling reason to create annual records or Company Tax Returns for HMRC for that period.
When your company starts trading in a financial year, you will be obligated to pay tax on any taxable income created when the business was trading actively.
How can Zyla Accountants help?
Zyla Accountants provide a dormant account filing service for limited companies. It requires 24 hours (1 working day) to plan and document dormant company accounts with Companies House. We suggest you request our assistance somewhere around 3 working days before the due date.
Also, we can’t take any accountability for any late documenting fines if your request was not submitted something like 3 working days before the due date.
Get in touch for a quote!
+44 7535 6176 81
“Leadership is not a person or a position. It is a moral relationship between people based on trust, obligation, commitment, emotion, and a shared vision of the good.”– rightly said by Joanne Ciulla (a philosopher and an author) and perfectly implemented by Zyla Accountants.
With immense pride, we would like to inform our clients that Zyla Accountants has expanded to make sure that you continue to get amazing customer service for business growth.
Please join us in welcoming our new team member Caroline Leonard (Payroll Manager) officially to the Zyla Accountants family.
How can she help you?
Caroline will be the main person of contact for all things related to payroll including:
- Starters and leavers,
- Holidays and sickness,
- P60s and P45s,
- Pension submissions and
Also, sometimes you can face IT issues in the background, in this case, if you need any assistance, don’t spare a moment to call Caroline as she would be more than happy to help you.
A seamless communication
Providing constant client support has always been our main priority so that their work doesn’t pause from our end.
Our accountants put extra attention in handling client’s issues in real-time so that a seamless communication channel between both teams can be set.
We request our clients to leave an email for non-urgent queries and we’ll get back to them within 24 working hours.
For any queries, contact us at:
Xero has announced that it will be increasing the prices of its three different plans. From 23rd September 2021, the pricing of all its monthly subscription plans will increase. Following the increase in Xero pricing, Zyla Accountants would like to inform our valued clients that we will be increasing our monthly pricing from October 2021 onwards for Xero’s increase in subscriptions.
Going forward, our pricing plan will be as follows:
|Premium Plan + Payroll
|Premium + Payroll + Expenses
|Premium + Payroll + Projects + Expenses
We will add this increase in Xero subscriptions from your October monthly invoice.
- For clients on standard plans, this will be a £2/month plus VAT increase.
- For clients on premium plans, this will be a £3/month plus VAT increase.
If you have any queries regarding your subscription, please get in touch with us.
Also, please note that the Xero subscription is included in the monthly price you pay.
What does Xero have to say about this change?
Citing the reason for increasing the prices, Xero group said, “As a cloud company, it’s important that we continually invest in product development and regularly release updates and improvements for our customers. We also periodically review our pricing to ensure it reflects the value of the product as it evolves while allowing us to invest in what’s next.”
For more information, contact Zyla Accountants
Call us at: +44 7535 6176 81
Email us: [email protected]