Missed payroll? Here's how to get back on track
While businesses strive to pay their staff on time, sometimes external factors can cause delays. Here’s how you can avoid those setbacks and get back on track sooner rather than later.
Staying on top of your payroll can be a tough task to manage – especially with a remote or hybrid workforce. While it may be a business’s biggest worry to miss payroll, there are common, avoidable reasons that can sometimes cause it.
And should you miss payroll, there are ways you can turn it around and get your business back on track. To help you and your business avoid missing payroll, here are some key things to keep in mind:
While businesses should always strive to pay their staff on time to avoid breaching contractual agreements as well as to maintain employee trust and motivation, sometimes external factors can affect payroll schedules.
These external factors include:
1Insufficient funds – namely; late payments from clients and suppliers, spending on new equipment that is out of budget, spending toward fulfilling an order that fails to materialise the sale, covering hefty tax bills, as well as rising business costs that are needed to cover like fuel or energy
2Mistakes in the payroll process – namely; companies underestimating what’s needed for payroll to run effectively, efficiently, and accurately or not realising the importance of payroll as a whole
But, there are ways to avoid falling privy to these mistakes. You can avoid missing payroll by ensuring your business always issues and collects invoices promptly.
Other ways to avoid missing payroll include regularly asking your landlords for more time to pay, researching possible funding options like short-term loans, and talking to your bank about extending facilities, delaying payments, or restructuring your business debt plan.
You can also look into invoice financing – which includes factoring and discounting and allows your business to structure your finances smartly and efficiently.
If you still need further assistance – contact your business accountant or enlist the help of payroll professionals and processing software. Software like Sage’s payroll processing software can help keep you and your team informed about your business's costs and expenditures and track it all with peace of mind.
To strengthen your business, find out more about Sage products and services here.