Top tips for an effective office
Many good practices are commonsense, but day-to-day work pressures mean that establishing office routine is often not a priority.
Institute of Agricultural Secretaries and Administrators council member Ros Foreman works for farmers in Hampshire. The most common problem with new farm business clients is simply the lack of established routines, she says.
“For example, cheque stubs and paying-in slips are often not filled in, so it’s impossible to reconcile the bank account.”
Farm secretaries and administrators charge anywhere from £15 to £40 an hour depending on the level of service they provide, so even if you’re paying at the lower end of the scale, it’s an expensive way to tidy up the office.
There are many other practical steps which can be taken to help things run more smoothly. Poor communication is often at the root of problems and can lead to misunderstandings and inefficiency, say advisers.
Ros suggests some simple improvements that will pay dividends whether you have help in the office or not:
• Sort incoming mail into categories – invoices and receipts, correspondence, advertising, recycle. Shred or burn anything that does not fit these labels
• Clearly label all pay-in slips and cheque stubs
• Keep all financial paperwork including HP agreements and pass to the book-keeper or accountant
• Make a forward diary or electronic note for five days prior to the due date for items which need to be dealt with annually, quarterly or monthly such as insurance renewals, VAT returns, legal obligations (eg vehicle tax), monthly returns, reporting obligations
• General filing – do it weekly/fortnightly to prevent it building up
• Back up data at the end of each day/week and store safely off-site
PAYE
Dealing with PAYE causes frequent admin headaches – employers must keep up with income tax, student loan deductions, maternity pay and agricultural wages rules.
Helen Workman of Cumbria accountant Dodd & Co suggests trying free software from HM Revenue & Customs which she says is easy to use. “The Employer CD-Rom isn’t a full payroll software system, but it’s more than a simple calculator. You can use it to keep a running total of employees’ pay and deductions.
“It also comes with updates that adjust your figures to take account of changes to tax codes. You can use the calculator to do year-end forms and file in-year starter and leaver information (P45s and P46s) online.”
Payroll services
If payroll is too demanding of your time, consider using a payroll service or bureau operated by accountants or farm secretaries, usually remotely. For example, a typical charge for a payroll service for a five employee business through Dodd & Co would be around £30 a month including year-end reporting and issue of P45 and P46 forms.
Common payroll issues
• If using self-employed staff, check that they qualify as such – if an investigation finds otherwise, it is the employer who is liable for unpaid tax and NI going back up to six years
• Employees aged between 13 and 16 years old who are in full-time education need a work permit from the local council disclosing type and hours of work. This legal requirement includes family employees.
• Monthly PAYE and NIC contributions should be paid by 19th of the following month. Paying electronically gives you an extra three days until 22nd
• If your PAYE and NIC liability is less than £1500 a month, PAYE and NIC can be paid quarterly
• The PAYE year end is 5 April. Year-end forms must be completed by 19 May in the same year
• If you provide staff with taxable benefits, the deadline for submitting these forms is 6 July following the tax year-end.
Online challenge?
VAT, PAYE and other tax and reporting requirements must increasingly be completed online. If this means you or your staff need training, funding may be available for part or all of the cost – ask your local training group or contact your IAgSA branch through www.iagsa.co.uk , telephone 024 7669 6592 or email IAgSA@IAgSA.co.uk
Licences and certificates
Are staff members qualified and legal to do the tasks you ask of them? You need to check certificates, driving licences and any other qualifications involving legal requirements at the start of employment and periodically thereafter. Take copies and keep these where they can be easily retrieved.
Missing documents
Keep tenancy and lease agreements, loan and overdraft arrangements, your will and other legal documents such as insurance policies, contracts of employment, health and safety policy and accident book safe, but easily to hand. The same applies for any document which the authorities may want to inspect at short or no notice.