Managing payroll on Xero: can you do it yourself?
With the numbers of SME and start-ups increasing at an exponential rate, many new business owners are having to contend with learning how to manage and maintain payrolls. Xero is one of the most popular software choices which can assist with this, despite the complex nature of the task itself, increasing numbers of people are turning to it, expecting it to solve all of their payroll problems. However, experts at e-Slip Payroll Services have investigated this and discovered that Xero is not as easy as it seems and may disappoint many of the people who are choosing to use it.
What is Xero?
Xero is a payroll and accounting software, managed online, which offers a number of different services, including automated payments and automatic payment reminders. Users need to pay monthly for the privilege of using the software, which can be accessed by anyone with the right authentication anywhere with an internet connection.
Can you manage your payroll yourself on Xero? A few things to consider...
1. Do you already know how to manage payrolls?
Anyone who hasn’t had to manage payrolls themselves before are unlikely to know what to do automatically, and regardless of how effective the software is, this becomes redundant if you don’t already have the correct knowledge of payroll systems and processes - whereas if you chose to outsource your payroll needs completely to a provider such as eSlip, you wouldn’t have to invest time into learning these processes, instead having time to help your business grow.
2. Do you want a monthly subscription fee?
While Xero acts as a payroll service provider for small business and enterprise bodies, this service can only be accessed by paying a monthly fee. Assuming that you do have the time and resources to invest into learning the complexities of payroll management and the software itself, your investment will become redundant if you do not continue paying to access the service. In this case, outsourcing your payroll might be more efficient, especially as you have the future flexibility to negotiate price rather than being tied to a single service.
As such, we have found that for SMEs, start-ups, and people with little experience in payrolls and accounting in the first place, Xero ends up creating more problems than solving them. Along with being potentially difficult to use, the lack of training and knowledge of this sector may mean that you make a mistake which could be disastrous, especially as HMRC will not accept ignorance as an excuse. Our conclusion is that you leave payroll and accountancy to the experts and outsource your needs to those who know what they are doing.
Call eSlip Payroll Services for a friendly chat today on 01279 851 000.