The benefits of using Xero for your payroll
Contributed by: occam

Payroll concept - tablet with payroll written on it, surrounded by office desk suppliesVoted ‘Payroll software of the year 2017’, Xero has become one of the leading cloud-based accounting packages on today’s market. Thanks to its intuitive design and user-friendly layout, an increasing number of business – both large and small – are using the software to consolidate their ongoing payroll demands.

For small businesses who need a more efficient process to manage the payroll function, Xero Payroll provides a whole range of helpful solutions including: flexible pay calendars, leave management, reimbursement of expenses, HMRC submissions, multiple pay rates, statutory pay calculations, easy pension filings, built-in timesheets, e-payslip and detailed payroll reports. There is also the benefits of unlimited users access where you can grant access to your accountant, bookkeeper or other team members to view payroll information. Now we go on to discuss a few major benefits of using Xero Payroll.

Mobile access with Xero Me

As long as you have an internet connection, Xero Payroll enables you to stay connected to your business finances wherever you are. While other payroll packages may restrict your access to a localised drive, the flexibility of Xero ensures you can access payroll information at any time. The app Xero Me also goes one step further by removing the burden of printing and distributing payroll as it allows employees to access their own payslip directly. To enjoy this feature, you or your payroll admin simply need to enter the email of your employees in the staff members’ record and then invite the employees to Xero Me.

Once your staff start using Xero Me, they can now check their historic payslips, submit their timesheet and apply for leave at their convenient, without having to come to you or your payroll admin for such information.

Seamless integration between payroll and accounting solution

Historically, payroll systems have remained separate from accounting software, requiring you or your payroll admin to process some information manually, thereby lowering efficiency and increasing the likelihood of errors occurring. Xero Payroll is integrated with Xero’s accounting solution, giving you or your payroll admin a seamless user experience when processing payroll.

HMRC compliance

Real Time Information (RTI) is a requirement where employers must use payroll software to send tax and other deductions under the PAYE system to HMRC electronically every time an employee is paid. Using the information, HMRC sends out tax code notices following a change on an employee’s tax information. With Xero Payroll, the process of submitting payroll data to HMRC is seamless and equally, when HMRC sends out notices, Xero will update an employee’s new tax code automatically too.

Whenever you process salary payment, Xero Payroll also automatically calculates the pension contributions of your employees, deducts them and submits the pension information directly to NEST or The People’s Pension (TIPP) with just a few clicks. The process is really intuitive. In the event that you need to make changes to your pension scheme, you can also do it by clicking ‘Refresh Scheme Details’ and whenever you encounter an issue, you can contact your accountant or post a question to the appropriate Xero community.

Other payroll functionalities

Xero’s payroll function makes it far easier to manage ongoing payroll requirements. Any deductions, reimbursements and flexible earnings can be entered directly onto payslips. Holiday entitlement is automatically calculated and P45s are produced without any hassle. When it comes to doing your year end accounts, you can produce P60s for all the employees in one go, making this high-pressured part of the financial year much easier to manage.

Data security

In today’s digital world it pays to have the tightest security possible to protect your data from possible viruses and hackers who look to exploit weaknesses in your system and steal such vital information. If payroll information is illegally accessed, it could cost significant damages to your business. Xero protects your payroll data using industry-standard Transport Layer Security encryption. If your laptop is lost or stolen, or if your office equipment is damaged due to an unforeseen event, the data will remain untouched and accessible in the cloud.

Using Berley and Xero for payroll

Xero allows you to combine your accounting and your payroll all in one handy piece of software. With a clean user interface and the opportunity to use a Xero Partner like Berley to help with any questions or concerns, we’re pleased to see that Xero is so highly regarded for its payroll services.

Berley is a Silver Champion Partner to Xero and together we make accounting easy and accessible. With the help of a small business accountant and Xero Payroll, your business will run smoother and your payroll will be a breeze. Call Berley Chartered Accountants today at 020 7788 8261 for more information – or use our Online Form.