Are your payroll payments up to scratch? With 88% of UK businesses experiencing errors in their payroll, a huge number of UK employees aren’t being paid accurately or on time. For both your business efficiency and employee satisfaction, this can lead to some pretty significant problems. Luckily, the ever-evolving world of financial technology (and our payroll team) is here to help you out.
At Angel Bookkeeping and Payroll Services, we use payroll payment software to automate instant payments for quick, accurate transactions. If your payroll isn’t running as smoothly as you’d like, it’s time you made the switch.
What Are Instant Payments?
Instant payments are a method of sending funds electronically. As the name suggests, they enable transactions to be completed in seconds, moving money from one account to another without any fuss.
For your employees, they don’t have to wait days for their salary to clear. Instead, they can access funds immediately after you’ve authorised a payroll payment.
When Can You Use Instant Payments in Payroll?
Instant payments aren’t just for one-off transactions. While they’re great for quickly paying freelancers and contractors, they can also be used as part of your recurring payroll system for permanent employees. This is a great way to upgrade your payroll and keep your money flowing smoothly.
How Do Instant Payments Simplify Payroll?
Instant payments bring a bundle of benefits to payroll management. Let’s take a closer look at what exactly they offer to understand why so many businesses are switching to payroll payment software:
- Stick to a payment schedule: Ensure employees are paid on time, every time – even in cases of last-minute adjustments or changes. This is particularly important for members of your team living paycheck to paycheck, where accurate payroll helps them better manage their personal finances.
- Improve employee satisfaction: Fast, reliable payments build trust and boost morale by giving employees quicker access to their earned wages.
- Reduce administrative tasks: Instant payments are simpler, cutting down manual data entry and laborious tasks. For our payroll team, that leaves us more time to focus on other financial tasks for your business, like ensuring tax compliance or helping you with VAT.
- Fix payment errors quickly: Instant corrections mean employees aren’t left waiting days for a payment issue to be resolved. Send the correct funds quickly for payroll that doesn’t disappoint.
Instant payments also allow you to keep your capital in your bank account for longer. Rather than sending the funds a few days before payroll, it’ll remain in your possession until the day of payment, improving your cash flow and providing a potential financial boost from your bank account interest.
Using Modulr for Efficient Payroll
Instant payments open the door for payroll automation, which brings us nicely onto Modulr – the Fintech software our team uses for streamlined payroll.
Modulr is a payment processing software that allows us to set up and automate instant payments. We use pre-determined schedules to send your payroll payments out on time, every time, and funds will enter your employee accounts within seconds of being sent.
It also carries out automated reconciliation. This checks that the funds sent match other details, like timesheets and bank statements, to flag any errors quickly so that our payroll team can get to work and put the world (of your payroll) to rights.
Another super handy perk of Modulr is that we can integrate it easily with our bookkeeping software. By working with our team, we can fully digitise your business bookkeeping and payroll to help you access financial records from anywhere, stay compliant with the government’s MTD regulations, and prove tax compliance.
Instant Payments for Payroll FAQs
Considering the switch to instant payments? We’ve answered these frequently asked questions to help you make a choice that’s right for your business.
What is Faster Payments for Payroll?
Faster Payments is an electronic payment system that facilitates instant payroll payments in the UK. It’s a software used by a huge number of reputable banks, including HSBC and Starling, as well as payment processing software like Modulr. With Faster Payments, you can send funds to your employees in real-time for efficient payroll management.
How Quick Are Instant Payments?
Instant payments typically ensure funds are available in the payee’s bank account within 10 seconds. This can vary, though, depending on the technology you’re using. Faster Payments, for example (which is a type of instant payment), can take anywhere from a few seconds to 2 hours.
Is a Bacs payment immediate?
Bacs payments aren’t instant. If you’re using Bacs to transfer funds, you can expect it to take around 3 working days for the payment to clear in the payee account. Instant payments provide a fantastic alternative to Bacs, ensuring your payroll transactions are in your employees’ accounts quickly to reduce delays and keep your team happy.
Work With Our Payroll Professionals in Sussex
Payroll doesn’t have to be a pain. At Angel Bookkeeping and Payroll Services, our top-rated payroll software and a fully qualified team take the stress out of paying your employees.
We ensure accurate payments that are always paid on time. This leaves you more freedom to focus on managing your team, speaking with clients, or getting some well-earned rest knowing your payroll is sorted.
Want a quote for outsourcing payroll? Reach out to us today, and we’ll be happy to help.