Payroll essentials and what you need to know

Payroll, while an essential part of your business, is also one that is commonly undervalued, especially for smaller businesses where dedicated payroll software may not be used.

We’ve come up with a list of payroll essentials to ensure that your payroll is hitting the target month after month.

1. Inaccuracy in your payroll system

One of the more commonly seen payroll errors goes back to data input when adding in an employee. If any part of this process is done incorrectly it could result in incorrect payments being made and unhappy employees. For example, an incorrect tax code or tax rate means that your employees could be paying more tax than necessary, which can be a headache for you to sort.

You also need to ensure you have accurately accounted for, and paid, the hours worked by each employee. Similarly, your payroll information needs to be kept up to date with any local laws or tax law changes, otherwise your payments can be incorrect.

Triple check this data and get it right to ensure less payroll drama, or employ the services of a chartered accountant to guarantee your business’ payroll responsibilities are delivered on time, every time.

2. Security

All payroll information needs to be kept confidential and secure. Any personal information on your employees, including names, IRD numbers, address details, and wage / salary information, needs to be covered.

Many payroll packages allow for encryption software, meaning the information is scrambled unless you have the correct key to allow you to read it. If you don’t use encryption software then making sure passwords and file protections are used is crucial.

3. Overtime

It isn’t uncommon for businesses to pay overtime rates to their employees. Your payroll software can be programmed to allow for an increased rate for an employee’s weekly or monthly hours over a specified number. This means goodbye to potential miscalculations of overtime.

4. Record keeping

Payroll records, from sole traders through to large multinational organisations, are required to be kept for a minimum of at least six years.

Auditors look at this information and, therefore, it’s important to show what happened and when. Supporting information is particularly important to help provide quick and accurate answers when any payroll errors have been made or there are other discrepancies. Well-kept records is a must for any successful business and failure to keep payroll records can see you fined.

5. Failure to make payroll deadlines

Processing payroll can be a big time commitment. Like many office administration tasks, payroll can seem like it will take no time at all but before you know it, it’s taken hours.

Ensuring you have all employee information prior to payroll (IRD number, tax code/rate through to name, address and bank account), and correctly capturing the hours that your employees have worked, means an easier ride when it’s payroll processing time.

There are many ways that a poorly functioning payroll system is costly for your business – from overpayments to employees through to time commitments. Outsourcing your payroll could give you the ability to focus your time on other areas in your business that need attention.

If you’d like to discuss outsourcing your payroll, or payroll systems and processes, then get in touch with us. We can create a system to work alongside what you have already, or suggest ways of taking the headache out of a poorly functioning system. Give us a call.

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Tips for Moving Day

17 April 2025

It's that time again and Moving Day is upon. Moving Day' is a big day in the farming industry. To help you with a smooth transition here are some tips: Early preparation Make sure sharemilker or contract milker contracts are signed. Plan a farm inspection with relevant parties (farm owner, incoming and outgoing sharemilkers, farm manager, advisor). Recruit and finalise employment agreements for new farm staff. Communicate plans and dates with everyone involved. Contact your insurer and utility providers. Farm owner responsibilities Make sure employees leave the houses clean and tidy. Carry out house inspections for maintenance. Comply with healthy home standards. Confirm departure and arrival times with tenants. Consider drug testing, if needed. Animal movements and biosecurity Plan animal movements carefully. Clean and disinfect farm equipment and machinery. Minimise the risk of introducing exotic pests. About 5,000 farmers do this every year. Talking clearly and planning well makes this important farming tradition go smoothly.

Selling Your Business: What’s Next After You Exit?

by Birgit Hoeglinger • 11 April 2025

Selling your business is a huge milestone—one that marks the culmination of years of hard work, dedication, and vision. But once the deal is done and the dust settles, you may find yourself wondering, “What’s next?” Exiting your business opens up a world of possibilities. Here are five potential pathways to consider as you embark on this new chapter of your life. 1. Enjoy Retirement For many, selling a business is the gateway to retirement. After years of being immersed in the day-to-day demands of running a company, retirement offers the opportunity to slow down and enjoy life at your own pace. Whether it’s traveling, spending time with family, or taking up new hobbies, retirement allows you to focus on the things that bring you joy. Planning ahead—both financially and emotionally—will ensure you make the most of this well-earned time. 2. Invest in Other Businesses Selling your business doesn’t mean stepping away from the business world entirely. Many people choose to invest in other businesses, whether it’s through buying equity, becoming a silent partner, or supporting start-ups. Your years of experience give you a unique perspective, and investing allows you to stay connected to the business community while diversifying your income streams. 3. Start a New Venture Once an entrepreneur, always an entrepreneur! If you have a new idea or are passionate about exploring a different industry, selling your business can provide the resources and freedom to start fresh. Whether it’s launching a tech start-up, opening a café, or pursuing an entirely new market, starting a new venture keeps your entrepreneurial spirit alive. 4. Become a Non-Executive Director Another pathway is to leverage your expertise and become a non-executive director. Many businesses value the insight and guidance of experienced business people. As a non-executive director, you can provide strategic advice, mentor leadership teams, and help shape the future of other companies—all without the full-time commitment of running a business. 5. Pursue Philanthropy For some, selling a business is an opportunity to give back. You might choose to support causes you care about through charitable donations, creating a foundation, or volunteering your time. Philanthropy not only helps make a difference in your community or the wider world but can also provide a deep sense of fulfilment and purpose in your post-business life. Charting Your New Path Exiting your business is both an ending and a beginning. It’s a chance to reflect on everything you’ve achieved and to embrace new opportunities that align with your goals and passions. Whether you’re ready to relax and retire, dive into new ventures, or make a positive impact through philanthropy, the choice is yours. Whatever path you choose, careful planning will help ensure your next chapter is as rewarding and successful as the one you’ve just completed. If you’d like support in exploring your options or preparing for life after your business, don’t hesitate to reach out us for guidance.

How to Protect Your Business from 2025's Cyber Threats

by Birgit Hoeglinger • 7 April 2025

Cybercriminals are constantly finding new ways to trick businesses, and their scams are harder than ever to spot. Small businesses are especially at risk, often seen as easy targets due to limited resources or weaker security. But with the right precautions, you can protect your business and prove the scammers wrong. Be Aware of New Threats Staying informed is your best defence. Here are some of the latest cyber threats: AI-Powered Scams : Scammers now use artificial intelligence to create convincing phishing emails and fake websites that are difficult to distinguish from the real thing. Impersonation Attacks : Posing as banks, government agencies, or suppliers, attackers aim to trick you into sharing sensitive information. Deepfake Technology : Fake audio and video messages that mimic trusted sources are becoming more sophisticated and harder to detect. Train Your Team Educating your team is crucial. Teach them to: Spot warning signs, like urgent requests to act quickly. Double-check email addresses and URLs before clicking on links. Be cautious with unusual requests, even if they seem legitimate. Regular training sessions and phishing simulations can help your staff stay alert and recognise scams before they cause harm. Protect Your Business Basic but effective security measures can go a long way. For example: Enable two-factor authentication to secure your accounts. Keep your software and systems up to date. Use resources like the Business Online Security Series for practical cybersecurity tips. It's also wise to consult with your IT provider to evaluate your business’s vulnerabilities and develop a cybersecurity training plan for your team. Taking action now can save your business from potential threats while safeguarding your reputation. Stay informed, train your team, and strengthen your defences!