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Payroll Services is a service that all firms should have. Whether outsourced or in-house this can from time to time create more grey hairs than imaginable. The problem that the market is that many so called claimed payroll candidates enter the market. They will go for an in depth payroll course with leading payroll package and then after a month get a certificate as being a payroll administrator.

So what is the problem with this you might say?

In many cases the payroll candidate only wants to do payroll. They might have done it for a few years as well and have all the training necessary to do payroll but don’t understand a single thing about accounting. As these candidates are sourced from big firms you firms only later on realize that although they can perform the task of payroll the end result can be catastrophic.
As the accounts need to be set up into the payroll package this is where the problems start. With the two leading packages in my opinion being pastel payroll and VIP the setup is extremely important. With this not being done correctly you will sit with journals being exported from the package. The control accounts is normally the areas where all of this goes down the chimney.

So what should you look for when employing someone or outsourcing your payroll?

In many cases the payroll candidate only wants to do payroll. They might have done it for a few years as well and have all the training necessary to do payroll but don’t understand a single thing about accounting. As these candidates are sourced from big firms you firms only later on realize that although they can perform the task of payroll the end result can be catastrophic.

As the accounts need to be set up into the payroll package this is where the problems start. With the two leading packages in my opinion being pastel payroll and VIP the setup is extremely important. With this not being done correctly you will sit with journals being exported from the package. The control accounts is normally the areas where all of this goes down the chimney.

So what should you look for when employing someone or outsourcing your payroll?

  1. The candidate that may handle your payroll should understand your business.
  2. The candidate that will do the work must have a solid knowledge of accounting and where they are heading with each transaction.
  3. The candidate must see the big picture with the end at mind being management accounts

If you sit with a firm with multiple income sources and cost centres or being that you might have a segmented GL for brances etc – getting someone that understand the above principles…….crucial

I hope the above gave you a good insight into what to look for in a payroll administrator – for any queries please feel free to contact us