DIY Accounting Payroll Software Questions and Answers

HMRC will advise the new tax code change from 543 to 603 which was announced in May 2008 and the date the new tax code to be applied which is expected to be September 2008. The amended tax code is entered as a new tax code on the employee details tax amendments section of the payroll file and the tax reduction is then automated at the date the new tax code is applied.

The income tax deduction calculated by the DIY Accounting payroll package is different to the inland revenue CD Rom.

Small differences can occur because the DIY Accounting payroll system has in the past used the revenue manual tax tables whereas the inland revenue employers CD Rom use a percentage calculation. In fact the manual tables jump in pounds and tax tables can increase by four pounds between different look up rates which can create small differences.

In the current financial year many of the financial income tax and national insurance calculations have been changed in the DIY Accounting payroll calculations to a mathematical percentage basis. Differences can still occur where the subject of the calculation is rounded to ignore the pence.

All these differences are minor and immaterial and adjust themselves since tax is calculated on a cumulative basis. HMRC percentage calculations also differ from the calculations using paye look up tables for similar reasons.

Employee gross pay was entered and no national insurance contribution was calculated.

The national insurance contribution table applied is shown in the column to the left of the employees name on the payroll sheet and you will probably see the letter C when because this employee is of working age and not a second employment the national insurance table letter should be A. Check the date for both for this employee which may have been omitted or entered wrongly.

Income tax deducted for my employee who is on a normal tax code was much higher than normal.

The income tax code column to the left of the employees name on the payroll sheet may appear as zero which should show the tax code. To resolve the tax code check the employee starting date has been entered and the numerical value of the tax code in the employees details and the date that tax code should be applied.

When I try to enter wages on the payslips a dialogue box appears with the message that the payslip spreadsheet is protected.

No entries are required to the payslips file. All entries are automated from the payroll file and the protection prevents corruption of the formulae in the payslip file. The entry on the payslip file can be changed by entering the required gross pay on the payroll workbook and the payslip will automatically update itself from there as part of the paye system.

I cannot see any tabs at the bottom of the payroll software workbook.

After entering the employee details navigate to the month in which you wish to enter gross pay by clicking the tab buttons at the bottom of the excel spreadsheet. If you do not see any tabs at the bottom of the sheet you may not be viewing the full sheet. Click the square box at the top of the menu bar to view the full sheet and the tabs should then be visible.

When I open the payslips file I receive an error message saying read only, non repairable error has occurred.

This is likely to have been an interruption during the download process that has corrupted the payslip file. Download the payslip workbook again direct from the confirmation email sent to you after purchase.

We bought the up to 20 employee payroll package and now have 23 employees.

Make a second copy of the payroll software, saved into a separate folder and split the payroll into two parts. Perhaps use one package for one department and the other package for a different department or use one for existing employees and the other for new starters.

Do I purchase a new payroll software package each financial year or can the payroll software be updated for more than one year paye purposes.

The payroll software include that years tax rules to
enable the packages to automate the production of that year tax returns. Each year has new tax rules embedded and being on excel rather than a database then it is necessary to purchase a new package each year.

Does the payroll software automatically generate the amount payable to the inland revenue each month.

The payroll package automatically calculates the income tax and national insurance and collects the information on a paye payments schedule so you know exactly how much to pay each month. The paye calculations also complete all the revenue forms including the P35 annual employers return which is required when you file the paye information with the revenue at the end of the financial year.

The payslip workbook is not automatically updating from the payroll spreadsheet.

The payslip updates automatically and there are no calculations on the payslip file or links out of that file. The most likely cause is that the payslip file was renamed and has broken the links from the payroll file. If you have saved the file after breaking the links by renaming the solution is to download the payslips file again without changing the name.

Accounting Payroll Solutions for Small Businesses

If you would be asking small business owners which task they are least fond of and least understand, and they would most likely be answering payroll. This is probably because a lot of business owners are not really accountants and for them, the process of computing how much to pay their employees as they comply with the government regulations is a bit cumbersome and confusing.

Fortunately, there are services, which offer outsourced solution for small business payroll. Businesses could choose to outsource only their payroll processing and payroll accounting to the firms specializing only in that particular field.

Payroll service companies could easily handle the smaller business payroll tasks easily and accurately, which allows these smaller businesses to dedicate their administrative time thinking of ways to expand their business and generate more revenue.

Payroll accounting is an area where small business owners could benefit from the concept of outsourcing today. Payroll processing, through outsourcing, would ensure that the job would be done properly, taking into account the latest regulations.

Although a lot of us see payroll as just a paycheck, there is actually a lot more tasks involved in it. Payroll accounting would include direct deposit, payroll checks, federal and state withholdings, debit cards, check registers, tax liability registers, tax forms, unemployment taxes and a lot more.

By outsourcing these processes and responsibilities, you, as a small business owner, would be able to devote your time to other administrative functions to be able to make your business better, while being on top of the report and filing deadlines. This is because the payroll service company would be able to keep you informed and updated of all that you would need to know and ensure that you would be staying in compliance.

Pros and Cons of Accounting Payroll Service

In the traditional setup one area which has been seen as the most ill performing at most organizations is often the payroll section. The accounting payroll services are often credited for improving the payroll process immensely and saving money at the same time. Here are some benefits and some areas which might be considered as cons of using them.

The most important benefit of payroll services is often its ability to handle verity of tasks in systematic approach without making errors. The result is often the improvement of payroll calculation and delivery of it even in light of few changes that might have happened during the last month.

The time-saving of using these services is huge as well. Even if you opt to do most of work in-house, with simple training your old staff can start to interact and perform with the help of extensive guide in light of updated legal requirements such as tax rates and associated benefits.

Security is often the key area for the management to address during the record keeping decisions; this however is quite easily managed with security features such as VeriSign® to improve the protection of your data. The data is often scrutinized for any changes and each change is fully investigated and justified, this gives you the chance to have the confidentiality of your records yet have the access to fast processing at the same time.

The real-time access is such valuable thing that your records get updated 24/7. The same effects can be applied from the offices even from the other side of the world quite easily here as well, which makes the whole reporting more reflective too. Similarly you are provided on-screen periodic reports on daily basis as well.

The only con that might be seen by using these accounting payroll services is the need of training to staff to start utilizing the benefits fully and understand the system. The cost is often a disadvantage as with these services you are actually doing the job of ten people with one or two staff members.

What You Should Know About Accounting Payroll

The most important fact about accounting payroll is that it involves financial statements and not filing tax returns. It requires a detailed description of fringe benefits and payroll for employees which is necessary in the management of employee time. Employer paid benefits, taxes and costs as well as wages, salaries, bonuses and commissions are only a few of the items included on a business´s balance sheet and income statement. If you only have a couple of employees, using a general ledger will be sufficient to record all such information, but if you have more than just 1 or 2 employees or expect to have many more in the future, automating your payroll system can make your it simple and efficient.

When keeping track of it using journals, there are two journals that are used in this system. A Payroll Journal records it that is due to be paid to employees. When it is time to disburse payments, a Payroll Disbursement Journal records amounts when it is finally paid to employees. Journals must be kept with detailed information on hours worked, amounts to be paid, dates and to which employees. Automating this process makes data entry very simple, and any errors can be caught early rather than searching paper journals to catch mistakes.

Computerized one allows for the printing of hard copy journals as well as payroll ledgers and calculates employee taxes to be withheld automatically with a few simple settings. Paying attention to detail is crucially important, as errors can cause problems for the accounting of your business. Keep individual files for your employees with their time and payroll information in them to make pulling information later an easy task. Be sure to keep a list of your employees and employee numbers handy if you choose to list employees by their number in your accounting payroll.

Employee time sheets are also called payroll source documents, and are required for audit use when accounting payroll. These documents should be put into a document source folder for easy access when requested. The Labor Department is one organization that requests these source documents on an audit basis. It is important to keep documents well organized, whether they are in paper form or computer form. Use software which will allow you to customize your fields to accommodate your particular needs, as well as software that will make it easy for you to transfer your information to other accounting programs.

Why You Should Outsource (Accounting & Payroll Services)

Why should you outsource your accounting, bookkeeping and payroll functions? Simply, because it makes common sense (pun intended).

If you are a small business, this simple step could put you on a level playing field with companies two-three times your size…

In addition to this major benefit, an outsourcing partnership is more effective and in the long run costs considerably less than doing it in-house. Here are some reasons why:

Costs: Handling your own accounting/payroll may mean building and maintaining your own team of professionals. With that comes the necessary human, financial and technical capabilities needed to do the job(s) properly…all equal high fixed costs (salaries, benefits, office space, technology, etc). By partnering with an outsourcing firm, you pay only for the time needed to complete the services needed (making it variable costs) and you can typically add on other services as needed (making it scalable).
Removing Non-Core Activity: If you are running an accounting, bookkeeping or payroll service then creating an accounting team doesn’t present a problem for you. However, if this isn’t your core business, the real and intangible costs of creating and managing such a team or individual takes time and focus away from your core…money making…functions.
Reduce People Management Issues: Advertising/recruiting, interviewing, hiring, training and managing an in-house employee or team takes time and money. Outsourcing removes these issues and you don’t have to worry about staff turnover. Losing a trained team member can impact the effectiveness of your entire accounting function. By outsourcing, you won’t encounter this problem or incur the cost of retraining.
Working With Specialist: For some small businesses (contractors, property management companies, grant funded non-profit organizations, etc), their industry requires some specialized compliance. Partnering with an outsourcing firm that caters to your industry is key. Since they may work exclusively with businesses like your own, they are aware of the constant changes in the tax code & accounting polices that apply to your specialized circumstances.

Good Luck!

Common Cents Consulting and it’s subsidiary, Common Cents Outsourcing, were created to provide virtual accounting & payroll alternatives to small businesses on the go without sacrificing quality.