Operating within the accredited payroll sector requires the company to remain compliant with the constantly evolving legislation. Specifically, Payments Pro holds FCSA accreditation, strives to comply within HMRC statue and acquires specialised insight regarding employment law.
The company is constantly reviewing its exposure to risk and has identified the following risks:
IT Systems:
With the increased reliance on technology, any disruption to the company's IT systems can result in a halt in operations and lead to financial losses. Measures taken to protect and preserve company data, include the use of multi-factor authentication, constant system backups and the use of cloud software where possible, as well as specialised encrypted services for e-signatures.
Operating Risks:
Common to many businesses, operating risks include human errors, internal process failures, and compliance risks. The company mitigates operational risks by employing an external board of specialists which oversees, improves and manages internal processes. Payments Pro is in regular communication with its regulatory bodies to ensure compliance and awareness of any changes to tax and employment legislation. The company is also subject to rigid monthly reporting deadlines via HMRC submissions and internal management accounts which provide a good insight into the company's day-to-day processes. Systems are in place to ensure an efficient stream of information allowing for timely completion of all reporting deadlines.
Credit and Liquidity risks:
The company holds most of its assets as trade debtors and bank funds, maintaining a constant positive cash balance and enough liquidity to overcome any immediate challenges. Despite a high level of trade debtors, the risk is considered low as funds are usually not paid out to subcontractors or HMRC until income is received from the customer. The company prepares and maintains a weekly cashflow which provides and up-to-date insight into the company position allowing for financial decisions to be made using real time information, limiting risk.
Exchange rate and foreign currency risks:
The vast majority of sales and purchases are made in GBP within the UK. There are no accounts holding foreign currency therefore there is very little exposure to foreign currency risks.
Changes in Legislation risk:
Due to the nature of the sector in which Payments Pro operates, it is susceptible to constantly-changing legislation and designated frameworks. The company values experience with all matters relating to compliance and therefore seeks input where required from specialist professionals to minimise risk.