25 April 2023

Does a bookkeeper also do payroll?

Bookkeepers and payroll specialists are essential in managing a company's finances. However, there are significant differences between the two roles. While a bookkeeper is responsible for recording financial transactions and maintaining accurate financial records, a payroll specialist is responsible for calculating and processing employee salaries and benefits.

So, does a bookkeeper also do payroll? 

In JRMA's case, the answer is yes! We can take on all your payroll responsibilities. However, it is essential to note that payroll processing requires specialised knowledge and expertise that may go beyond the typical duties of some bookkeepers.

Payroll processing involves complex calculations, tax filings, and compliance requirements. HMRC's website gives an overview of what steps need to occur each time you run your payroll. Payroll specialists must stay up-to-date with changing tax laws, employee benefits, and government regulations.

Benefits of outsourcing your payroll

Outsourcing your payroll services can provide significant benefits to your business. Here are some of the key advantages of outsourcing payroll:

Saves time and resources

Processing payroll in-house can be time-consuming and resource intensive. Outsourcing payroll allows you to focus on core business activities and strategic initiatives rather than spending time on administrative tasks.

Reduces errors

Payroll processing involves many details and calculations that can be prone to errors. In some cases, every time you run the payroll for your employees, you may have to make different deductions or allowances depending on whether the employee is eligible for sick pay, maternity cover pay, student loan deductions, etc. The amount of tax that each employee pays each month may also vary. Outsourcing payroll can reduce the risk of errors and ensure your payroll is accurately processed.

Ensures compliance

Payroll processing is subject to various laws and regulations laid down by HMRC. Outsourcing payroll to a bookkeeper or accountant with specialist knowledge of payroll regulations can help you to stay compliant and avoid costly penalties for late or inaccurate filing.

Improves data security

Payroll data contains sensitive personal information, such as national insurance numbers, addresses, and bank account details. By outsourcing payroll to JRMA, you can ensure that this information is handled securely and complies with the GDPR.

Provides access to expertise

Outsourcing payroll services gives you access to expertise and software that may not be available within your business. Bookkeepers who also provide payroll services stay up to date with changing regulations and use the relevant payroll software to process everything accurately and on time.

Saves money

Outsourcing payroll services can be cost-effective for all businesses. By outsourcing payroll, businesses can avoid the costs of hiring and training in-house payroll staff, purchasing payroll software, and maintaining payroll systems.

Outsourcing payroll services can provide significant benefits for businesses of all sizes, including time and resource savings, reduced errors, compliance, improved data security, access to expertise, and cost savings. Additional benefits can be achieved if your payroll provider handles all your bookkeeping requirements.

As businesses continue to navigate the complex world of finance and compliance, outsourcing payroll services can help streamline operations and free up resources for strategic initiatives.

Further details about JRMA's payroll service can be found here. We work with businesses across Worcestershire, including Kidderminster, Bromsgrove, Redditch and Droitwich and we would be happy to help your business in any way we can. Please contact us at 01905 796512 or email info @ jrma.co.uk so we can discuss your requirements in more detail.

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