If you are a freelance contractor and need to learn more about umbrella companies then you'll want to read this article. I'll be discussing what umbrella companies do, where they came from and the five key questions to ask before joining one. After reading this article you'll be an umbrella company expert - I promise...

WHAT UMBRELLA COMPANIES DO

An umbrella company offer a simply 'pay as you go' payroll alternative to freelance contractors in the UK wishing to work through their own limited company as opposed to PAYE at the recruitment agency or end client. A traditional umbrella company employs hundreds if not thousands of contractors, paying them on a weekly basis following the submission of a timesheet. The main tax advantage for contractors is that they are able to offset the cost of their travel and substance expenses against their taxable pay. This equates to a higher net take home salary.

WHERE UMBRELLA COMPANIES CAME FROM

Umbrella companies were spawned following the introduction of IR35 back in April 2000 and became hugely popular after the Management Service Company Legislation in April 2007. They are seen as one of the last remaining 'compliant' payroll methods, taxing contractors fully under PAYE, after the deduction of allowable business expenses.

Nowadays, there are over 100 umbrella providers in the UK employing in excess of 200,000 freelance contractors. Recruitment agencies love umbrella companies because they reduce payroll administration. Contractors love umbrellas because they generally take home more money than straight PAYE at the agency or client. HMRC are somewhat on the fence - whilst they have recently considered legislating against them, they are also aware that if umbrella providers didn't exist, more contractors would almost certainly work through their own limited company and therefore pay less in combined taxes.

5 QUESTIONS TO ASK BEFORE JOINING AN UMBRELLA COMPANY

1. How do I know you are compliant?

THE BEST UMBRELLAS ARE MEMBERS OF PROFESSIONAL BODIES SUCH AS AEMC, PROFESSIONAL PASSPORT OR SPA.

2. How much do you charge?

EXPECT NOTHING MORE THAN £30 PER WEEK

3. Do I need to keep receipts?

THE ANSWER IS YES

4. What insurance do you have?

EXPECT PUBLIC & EMPLOYERS & PROFESSIONAL INDEMINTY AS STANDARD

5. Do you pay me via CHAPS, BACS or FPS?

WITH CHAPS & FPS YOU GET YOUR MONEY THE SAME DAY, NOT THREE DAYS LATER



Article Source: http://EzineArticles.com/?expert=Lance_Hooper_Bartlett

Has anyone ever tried to sell you something you were completely uninterested in purchasing? You know, the long and drawn out sales pitch with the salesperson talking nonstop about features, not even stopping to take a breath for fear you will say, "NO."

It's times like this when we appreciate our ability to be assertive and walk away. This situation can happen just about anywhere from the car dealership to the perfume counter, or to a work situation. The simple resounding answer to give these tenacious sales people is, "NO." Purchasing software for your company is no different! If you are currently satisfied with the accounting or payroll software for your business, it's probably a good idea to stay with what you have. After all, switching software involves a learning curve, and your company will need to take the time to adjust.

And while the above is true most of the time, there are certain times when a business person believes they don't need to move to a different software application, yet for the good of their business, they absolutely should. Here are the main reasons a company should consider a software move, even when they don't think they need to.

1. You are still using a DOS based product. There were many excellent DOS products available in the 1980s. In fact some of them still work well to this day. This leads some people to believe they can keep using the program(s) to run their business indefinitely. If you are using a program that was created in the 1980s, the upside is that the company you bought it from must be pretty good to have kept it working that long. If you drive a car from the 1980s you have surely had a lot of work done just to keep the thing running. Nothing can last forever. When it comes to software, DOS based software is a thing of the past and you need to move forward as soon as possible, or at least develop a plan to do so. Operating systems are moving forward and Microsoft has released Vista, with talk of the next system around the bend. Your DOS system probably won't work on either one. So if any of the computers in your operation crash, you will need to purchase a new one. Where will you be when there aren't computers available to run your DOS program? Develop a plan now, and you won't have to panic later.

2. Your software product is no longer being supported. If your product is no longer supported, you will not be able to get your questions answered and will be left to handle questions and problems on your own. Updating to something newer will allow you to ask questions and get help when you need it.

3. You are spending more time 'tricking' your system than simply working with it. This is the kind of thing you don't realize you are doing until after you change software. Set aside one whole week where you consciously keep track of how much time you or your staff spends manipulating your software to handle the way you need to enter or analyze your data. Are things such as invoice entry or inventory tracking taking you three to four steps when they should really only take one or two? If so, you and your staff could save significant time by moving to a system that can handle your needs.

4. You have a hard time finding hardware that will work. Simply put, you should be able to find hardware such as computers, printers, and other devices for your business without much hassle. If you have to search from store to store or on eBay to find a device that will work with your old software system, it's time to upgrade your software.

5. You stay with your current software because you are afraid. Don't feel bad. There are many business people who simply stay with the software they have even while they know full well they really should move to something different. They know that their security would be better, their processing would run more smoothly, and that they would save themselves and their staff valuable time by moving to newer software. Feeling bad won't help, but developing a plan to move forward will. Even if you can't make the switch now, planning it out ahead of time will reduce the worry and stress you are feeling right now.



Article Source: http://EzineArticles.com/?expert=Stephanie_Elsen

The 'buddy punch' is something that most companies have hoped would have gone away by now, but unfortunately it is here to stay. For those who aren't aware, it is simply the process of someone else (an employee's 'buddy') going through the door and clocking in with their card too. It'd quite simple and very effective in a large company where the cards are taken as an accurate view of employee attendance.

Trouble is, it's open to fraud.

Some companies have taken some quite drastic measures to stamp this sort of activity out, ranging from security guards on the door to CCTV cameras above the clocking-in machines, however these are expensive options and in some cases (in the case of CCTV especially) can cause consternation amongst staff. One thing you really shouldn't do if you want to keep a happy workforce is give the impression that 'Big Brother' is watching them - this will cause many more problems than it solves.

If you speak to HR companies, they will tell you that the carrot is far more effective than the stick in these situations and that one of the best ways to combat buddy punching is to simply make it an easy option not to want to do it. For example, make people responsible for their own clocking in procedure by ensuring they look up to their peers and let the staff self-regulate.

This is obviously easier said than done and so luckily, for those who want a technological answer to the problem and not an HR one (which let's face it - sounds OK unless you're actually working for the company that has the problem), there are many ways to combat it.

Technology to the rescue!

Luckily there is a particularly easy way to eliminate buddy punching altogether and it comes in the form of 'biometric' clocking. Anything with the word 'biometric' in it may sound a little bit scary, but all it means is that it uses some form of recognition that is based on the body parts of the person using it. You may well have seen a lot of it in the press where the iris or fingerprints are used to recognise a person, although it has also met with a lot of consternation and resistance from many quarters - mostly the human rights contingent.

Although these methods can be seen as a little over the top, there are other ways that seem to be an ideal compromise. One of these is to use a system that recognises the person's hand shape and along with a PIN will clock the person in. This is an extremely easy system to implement and it is also incredibly quick to use. One of the big technological problems with biometric systems in the past has been the issue of processor power. Consider the complexity of the iris or fingerprint and you can quickly see that when you've got any decent number of staff in your company that very quickly you are going to need some pretty powerful computers to handle the search and give a positive when someone logs in.

Again, by giving a combination of hand punching together with a PIN, the problem is solved. The PIN finds the record and then the hand print simply confirms it.

This solution in conjunction with an effective HR policy can ensure your staff is happy as well as keeping your HR records accurate.



Article Source: http://EzineArticles.com/?expert=Richard_Graves

1. You have to pull data together from multiple sources to answer important business questions.

2. You have to enter the same data more than once.

3. You're getting more complaints from your users.

4. You've noticed -- or been told -- that you need better internal controls.

5. You frequently have to wait too long for transactions to process or reports to run.

6. You have business functions or processes you'd like to be tracking in your software, but the software can't handle it without extensive customization, or can't handle it at all.

7. You can tell when someone is using your software by the muttering and swearing...

If you decide you do need better accounting software, then what is the best accounting or ERP software for your business? To answer this question, you need to identify three key things: what are your requirements, what is your budget, and who in your organization is going to make this happen?

What are the key things you want new accounting / ERP software to do for you? Why are you even thinking about new software? Do you have software currently that isn't doing certain things you want or need? Are you looking for improved visibility, elimination of duplicate data entry, automation of critical business functions? Do you need to meet regulatory requirements such as DCAA, HIPAA, or SOX? What are actually requirements vs wants or 'nice-to-have's? Also look at what features you may have now that you don't want to lose. Understanding your own needs is key to selecting the right software, but unfortunately many people skip this step.

What is your budget? You can get business software for any price from free to millions of dollars. In general, the more you have to spend, the more capabilities you can get. However, more features and functions aren't necessarily better. If you buy a system that is 'too big for you', you may wind up with lost time due to user confusion, an overly-complex user interface, and even wasting time disabling or hiding unused features. It's fine to buy a system you need to 'grow into' but don't just assume bigger is better. Sometimes the best accounting software for you is not the most expensive software package you can afford.

Who in your organization is going to make this happen? Selecting and implementing a new accounting or ERP package is a significant amount of work and money. While you will want and need a number of people from all parts of your business involved, you will also absolutely have to have one internal person who is the primary project owner and evangelist. This person may be your internal project manager, or the controller or CFO, or the IT director, or the company president. But if you don't have one key person who is focused primarily on making the project happen, you're very unlikely to be successful.



Article Source: http://EzineArticles.com/?expert=Jane_R._Smith