Valueforth Consulting

5 Tips for Managing Payroll Effectively

Payroll management is a system for processing employee paychecks (salaries, bonuses, and deductions), complying with labor laws, and maintaining adequate documentation.
In view of the frequent changes to tax and employment laws in most countries, it is pertinent for Business Owners and HR Managers to be familiar with such changes in order to avoid employment-related litigations and tax penalties because of non-compliance.

Here, we will discuss tips and the best guidance to help make payroll as simple and painless for small business owners as possible.

1. Create and maintain a payroll calendar

For you to ensure effectiveness in your payroll process, the first thing to do is to set a payroll calendar. This helps to see that all employees get paid on time and to keep the payroll in check. Weekly, bi-weekly, monthly — it doesn’t matter as long as you have a system in place.

2. Automate payroll-related taxes

Avoid unnecessary tax miscalculations and the associated penalties by automating your payroll system.

Several leading payroll providers and software packages offer automated payment of taxes as a feature. We have a number of payroll and HR software we can recommend and implement for your company.

3. Know the law

This one is a given. The rules and regulations surrounding payroll laws can be a bit complicated and often differ from country to country. You’ll want to make sure your business’s payroll system is in compliance with the law from the get-go.

Our HR and Employment Advisory team are very much ready to guide you on the applicable payroll laws within your business locations.

4. Appoint a payroll manager

Depending on your financial resources and other internal factors, you can seek the service of a payroll management service provider or appoint an in-house payroll manager for your company.

If a member of your team has any experience in accounting, HR, or business finance, consider asking them to take on some payroll management duties. In conjunction with a good software system, these duties are unlikely to pose a significant challenge to them if you give them the proper support. Even if you need to enlist more than one employee to help out, having one oversee the whole process can make things significantly more efficient than trying to patchwork through it all.

5. Keep all records

Keeping payroll records isn’t just a recommendation: it’s a statutory requirement for all private and public companies. Your past employees or tax authority may require employment records (such as payslips, PAYE tax returns records etc) of more than 3 years from you where a need arise. So ensure you have a system of good document management.

While software can do some of this for you, it’s best to maintain your own physical and digital records as well to minimize the chance of loss.

How to Choose the Right Business Structure

Choosing the right legal structure is an important part of running a successful business. Whether you're just starting out or your business is growing, it's crucial to understand the various legal business structures and the associated benefits of each structure.

The choice of the business entity or business structure you make will determine your business finances, taxes, credit risk exposure, and your long-term strategic plans.

For simplicity, the four major types of business structures are discussed below:

Sole proprietorship

An unincorporated business that is owned by one person who reports business profits on his or her individual tax return. A sole proprietorship is the simplest business structure and is straightforward to start.

Partnership

An unincorporated business owned by multiple owners, either people or other businesses. Profits are divided among its owners and reported on their tax returns. Common partnership types include general partnerships, limited partnerships, limited liability partnerships (LLPs) and limited liability limited partnerships (LLLPs).

Limited Liability Company (LLC/LTD).

An LLC or LTD is a type of privately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 50, and restricts shareholders from publicly trading shares.

Public Company

A public limited company is a business that is managed by directors and owned by shareholders. A public limited company can offer shares to the public.

Switching business structures is possible, but it's best to decide early on which one you'll need for the next few years. It can get complicated — not to mention pricey, in terms of legal fees — to change structures, and the effort could distract from running your business.

Tax Incentives for SMEs and Startups in Nigeria

In most countries of the world, small-scaled companies (SMEs) and Startups have significant contributions to economic activities in most industries and they remain the major employers of labour.

It is against this background that governments in the developing countries like Nigeria are now working to create more enabling business and regulatory environments for SMEs and Startups in order to maximize their economic potentials and benefits of such entities.

It is therefore benefiting for SMEs owners, investors and managers to be aware of the efforts of the government in creating a friendlier regulatory environment and they should be positioned to take advantage of such legislations through the following tax incentives:

Company Income Tax Exemption: Small businesses with an annual turnover of less than 25 Million Naira are exempted from paying Companies Income Tax. A lower company income tax rate of 20% is also provided for companies whose yearly turnover is between 25 million to 100 million Startups may find this useful in their early stages.

5 Years Tax Holiday: Startups who qualify for Pioneer Status in Nigeria can enjoy tax holidays for an initial period of 3 years from their first year of commencement, extendable for an additional 2-year period as established under the Nigerian Industrial Development (Income Tax Relief) Act. Startups in sectors such as e-commerce, waste management, electricity and agriculture may be eligible for pioneer status incentives.

Reduced Tax Rate for Investors: There are various incentives provided in the Nigerian Venture Capital Incentives Act for investors and Startups engaged in venture projects. These include: (i) up to 30% capital allowances for eligible Startups on equity investments made by Venture Capitalist firms; and (ii) up to 100% exemption on capital gains tax on capital gains accruing to Venture Capital investors upon disposal of their equity interest.

Tax Incentive in the Agricultural Sector: Eligible small or medium-sized companies in the Agricultural sector with an annual gross turnover of 25 million to 100 million Naira, may apply for tax exemption for 4 years and an additional 2 years. This incentive is created under the Finance Act, 2020 which amended the former provision under the Industrial Development (Income Tax Relief) Act.

Tips for Managing Work-related Stress

Demands at the contemporary work environment often make pressure at work inevitable. Pressure may also be perceived as acceptable by an employee as a motivating factor for learning depending on the available resources and personal characteristics.

However, when that pressure becomes excessive or otherwise unmanageable it leads to stress. Stress can damage an employees' health and the business performance.

Work-related stress can be described as the response people may have when presented with work demands and pressures that are not matched to their knowledge and abilities and which challenge their ability to cope.

To be a high-performing employee, keep the following tips at heart in managing your workplace stress:

-Identify your stress triggers

To begin coping with stress at work, identify your stressors or stress triggers. Your unique characteristics and personality as well as your experiences will influence the way you respond to and cope with stress.

Carefully observe the people, situations or events that easily trigger your stress and these may be pretty different from what your other colleagues are sensitive to.

-Deal with your stress triggers

Once you've identified your stress triggers, consider each situation or event and look for ways to resolve it. Importantly, you will need to address home-related issues affecting your performance at work.

-Improve on your time management skills

Social skills like time management are very effective in managing stress at the workplace. If your goals are not specific, measurable, attainable, realistic or time-constrained, your may open yourself to more stress at work.

-Seek Help

Seeking help should not be a sign of weakness to you when trying to cope with stress. Talk to your trusted friends and family members about the issues you are having at work, relate with your team or supervisor. Take a break where necessary, and reach out to a mental health provider for assistance as well.

Best Practices for Effective Remote Working

Remote work is no longer new to the workforce in the various industries that were mostly affected by the last Covid-19 Pandemic. In fact, recent studies have shown also an increase in the number of professionals who now prefer to work from home.

The obvious benefits of remote work policy for both the employees and the employers may include greater flexibility in work schedule, improved work-life balance, higher motivation and productivity, and reduced overhead cost for the employer.

As an employee, there are however basic practices that will help you to become more effective with working remotely. Let us consider a few below:

-Create boundaries between work and life

Try first to create a workspace at home where you put your laptop and other work devices necessary for your official tasks daily. Working from home can blur the lines between your work and personal life. So avoid a burnout by separating these two worlds and switch off after your working day ends.

- Manage your time well

Work with a time planner to effectively allot and manage time on every task. Estimate how long each task is going to take and set for yourself realistic targets.

-Prioritize clear communication and regular check-ins
When it comes to remote work, communication is never too much. So, it is essential to use relevant work tools (project management software and collaborative communication tools) that would facilitate effective communication with your team members and colleagues since physical interactions and collaborations are impossible.

Giving priority to this frequent, clear communication keeps everyone aligned on tasks and goals while helping to create stronger personal relationships across remote teams. This builds trust and boosts employee engagement.

-Be accountable

Show yourself to be accountable while working at home. A good idea for this is for each team member to share what they've achieved over the previous week and what their plans are for the week ahead. That way, you can see what others are working on and what they're responsible for.

-Exercise yourself

Take a regular break to exercise yourself while working remotely. Being sedentary for long periods is not good for your health. Physical activities discharge chemicals that help relieve stress and make a person feel more relaxed. Exercise helps you deal with work fatigue and reduces the risk of depression, a hazard associated with the loneliness and social isolation linked to working from home.

Benefits of Personal Budget

Personal budget is simply a financial plan about your personal income and expenses, usually over a period of time. Creating a personal budget is one of the best ways to maximize the money you do have and create a plan that prioritizes your spending for the future.

If you wonder why you may need to create a personal budget, you can check the following benefits of a personal budget:

Budgeting Gives You Control

A personal budget helps you to control your expenses. Your budget should however be flexible to accommodate certain emergencies, such as a medical expense, urgent vehicle repair etc. When you sit down and create a personal budget, you’re taking control of your money and not letting your money control you.
Budgeting Keeps You Organized

A well-written financial plan (personal budget) will also help you to be organised and proactive. With the use of online budgeting apps, you could easily spot the trends and changes in your monthly expenses and take necessary corrective actions on time.

Budgeting Builds Better Habits

Once you’ve created your personal budget, you’ll need to stick to it! By working hard to make sure you’re spending your money according to your budget, you’ll build new and better spending habits. Over time, you will find that these habits become easier to maintain and you’ll begin to see real financial progress.

Budgeting Manages Debt

You may have some debts such as mortgage or student loans-to improve your financial standing in the future. A good budget will keep you aware of when your debts will be paid off and identify when you may have additional money that you can redirect into savings or spend on an occasional treat.

Moreso, a personal budget will help you find which areas you can reduce your expenses so that you can afford to start making extra payments towards that debt.

Budgeting Gives You A Better Life

In addition to the other benefits mentioned above, when you create and stick to a personal budget, you’ll find you have much less stress in your life, be able to save some extra cash, move towards your financial goals faster, and you will ultimately see your financial health increase in line with your goals.

Employee Motivation: What you can do…

Motivation is natural to all, and employee motivation is a key to an organisation's success. It's the level of commitment, drive and energy that a company's employees bring to the role every day.
Every employee needs a conducive working environment in order to perform maximally. So, note the following keys if you want to have a well-motivated workforce:

-Communication: Effective communication is a fundamental key to having a well-motivated workforce. Effective communication between employees at all levels strengthens relationships and ensures everyone is on the same page. This creates a positive working environment, and improves both employee motivation and productivity, too. More importantly, effective workplace communication helps drive better results for individuals, teams, and organizations.

-Professionalism: This is the aggregation of proper business, ethical and interpersonal behavior, and it’s critical to successful employee motivation. Professionalism fosters pride and employee loyalty. Demonstrate your professionalism first and then help employees achieve and value their own professionalism. And don’t forget to recognize their progress.

-Leadership: Are you a leader or a driver? Leaders value their people and encourage them to be successful. Encourage participatory and motivational style of leadership. If your goals are not specific, measurable, attainable, realistic or time-constrained, your employees may have difficulty achieving them.

-Reward & Recognition: Lavishly recognise the effort and success of your team on every given tasks. Build an organisation with a culture that rewards excellence in your people. When rewards are distributed based on objective data, employees are more likely to view the process as fair and are also more likely to have a concrete understanding of what is expected of them. This will increase their motivation to achieve the desired performance results

-Work-Life Balance: When employees are healthy, well-rested, and feeling great, they are more likely to produce the best work possible. Moreso, productivity will increase due to sufficient energy and motivation.

Got an idea that could make a good business? Yes, every business starts from being just an idea in the mind of an entrepreneur. However, it is never an easy task to translate your idea into a viable business that could grow to become a successful brand or entity.

You definitely will need a team to build a successful company, and a startup consulting firm will be needed as part of your team.

From crafting a workable business plan to establishing a legal entity that fits your business model to sourcing and attracting both human and financial resources, you should have a team of startup advisors or consultants around always.

Although your advisory needs may change as your startup business move across its different growth phases, having an advisory team will offer you the following benefits:

Strategic Business Insights
Your startup consultants can help you re-define your business model, identify market opportunities and risks, decide on the best course of action for individual challenges, and assist you in creating a strategic roadmap to help achieve your expansion plans.
Financial Insights
Your startup will need finances. Financial planning includes various activities, such as managing cash flow, raising capital, and establishing banking partnerships. Your consultants will not typically approach investors on your behalf; they frequently have insider knowledge of what investors hunt for and how to prepare for successful conversations.
Your financial advisors will consider your business and legal structure and assess the most suitable financing options.
Competitive insight
To navigate well in a new market or as a new business, it can be beneficial to bring in a business advisor who understands the landscape, trends and competition within the new territory or industry.
Experts’ industry-specific knowledge can provide important insights as you try to develop, gain market share, and explore the unfamiliar market. Startup Consultants can also assist you in setting prices, formulating and executing solid sales and marketing strategies, and hiring the best employees.
At Valueforth Consulting, we offer robust start-up support services that help you navigate the Nigerian business environments as we together build your business into a successful brand.

Valueforth Consulting on Google From crafting a workable business plan to establishing a legal entity that fits your business model to sourcing and attracting both human and financial resources, you should have a team of startup advisors or consultants around always. Although your advisory needs may change as your startup business...

Valueforth Consulting on Google From crafting a workable business plan to establishing a legal entity that fits your business model to sourcing and attracting both human and financial resources, you should have a team of startup advisors or consultants around always. Although your advisory needs may change as your startup business...

There is no doubt recruitment is one the key functions of the Human Resources (HR) Department in any organisations. Likewise, every HR professional can also confirm that recruitment takes some significant resources in order to attract and retain a great talent!

What is recruitment? Usually, recruitment process, involves finding the candidate with the best skills, experience, and personality to fit the job. It requires a series of collecting and reviewing resumes, conducting job interviews, and finally selecting and onboarding an employee to start working for the organization.

So going by its importance and the associated cost, every recruiter (or a recruitment team) therefore needs to be equipped with the relevant knowledge and skills in order to have an effective and successful recruitment. Here are other key guides in developing an effective recruitment process:

Process Automation: With the right technology and apps such as Indeed, ZohoHR, you can effectively manage your entire recruitment process and save a considerable amount of time on the process.

Make Data-Driven Decisions: We in the days on data-driving decision making process, so make use of a comprehensive data analytics system to have useful insights on the number of applicants for each job, the number of candidates interviewed, the locations of your best talent pool (candidates), etc. Reflecting on the process with each hire will help improve the recruitment process over time.

Utilize Employee Referral Program: An employee referral program will help you to improve your recruitment process. Your existing satisfied employees are often more motivated to spread the word about the opening, and they’ll likely lead you to more qualified candidates for new openings. Organizations that use their employees’ professional networks can have a ten times larger talent pool to recruit from.

Develop a Clear Employer Brand: The same way candidate invest time to impress potential employers by sharing their experiences and skills, businesses should make effort in attracting talents by illustrating why candidates should also work for them. As a company’s recruiter, your corporate information (company’s mission and values) should be displayed clearly across your website and social media pages in order to establish your company as a strong digital brand.