For small and medium-scale businesses, payroll management is essential. Otherwise, it can become one of the most significant operational expenses for the organisation. To avoid payroll errors, fines, and penalties, hire professional accountants for payroll audit services for your business. An accountant’s job is to conduct a complete analysis of the organisation’s payroll management to find loopholes and faults in the calculations and rectify them.
For payroll services in Newcastle, contact us. We will help you with proper payroll audit services.
What is a Payroll Risk Assessment?
During a payroll audit, accountants highlight the potential risks associated with payroll management to ensure the system’s complete reliability and accuracy. The accountant will also investigate complete employee information, pay rates, wage amounts, and general tax calculations.
This is an essential step towards a business’s legal compliance. To avoid financial risks, a business owner must appoint an accountant to audit the payroll system regularly. Unreliable payroll calculations can escalate HMRC penalties, fraud, and improper salary calculations and upset employee and business relations.
How Can Payroll Audits Help Organisations?
Risk Management
During payroll audits, accountants can identify accounting loopholes and inconsistencies in the payroll calculations. Mistakes like wrongly calculating the payment period, wrong pay rates, and improper calculations can make the HR department legally liable to the business and the employees. With the help of payroll audits, these risks can be identified and mitigated beforehand.
Legal Compliance
Many companies in different industries are legally obligated to conduct payroll audits. During the audit, accountants check the documents’ authenticity, cross-check the employees’ details, and confirm the employees’ pay eligibility. Since it is a legal requirement, it is better to conduct the audit by a professional and certified accountant.
Accounting and Bookkeeping
Payroll audits help businesses maintain proper documentation processes, which can be advantageous for company operations later. This reduces the risk of business corruption and ensures complete employee satisfaction.
Banking Reconciliation System
Continuous payroll audits ensure updated balances for the organisation and that the bank statements match the cash transactions.
Contact Northumbria Payroll Solutions for payroll services in Newcastle. Organisations of all sizes benefit from our managed payroll and outsourcing services. Contact us for more details.