Accurate payroll account reconciliation. Identify discrepancies with ACG.

Payroll Reconciliation Services – Stay Accurate, Compliant & In Control

Payroll errors are more common than most businesses realise. From missed deductions to incorrect tax submissions, even small mistakes in payroll can lead to major headaches — penalties, overpayments, or disgruntled employees.

That’s why payroll reconciliation is essential.

At Audit Consulting Group, we offer comprehensive payroll account reconciliation services to help UK businesses of all sizes keep their records clean, accurate, and fully HMRC-compliant.

Whether you process payroll in-house or use software like Sage, Xero, or QuickBooks — our expert team will review your payroll accounts, identify and fix discrepancies, and give you confidence that everything is where it should be.

What Is Payroll Reconciliation?

Payroll reconciliation is the process of comparing your internal payroll records with financial accounts, tax submissions, and payment reports to ensure that everything matches.

It includes:

• Verifying employee wages and salaries
• Confirming PAYE and National Insurance deductions
• Matching pension contributions
• Checking employer contributions and liabilities
• Comparing payroll system records with your general ledger
• Ensuring submissions to HMRC align with actual payments made
• Spotting overpayments, missed entries, or accounting errors

In simple terms — payroll account reconciliation helps you make sure every pound and pence related to payroll is properly tracked.

Why Is Payroll Reconciliation So Important?

Payroll is one of the biggest expenses for most businesses. If your payroll records don’t match your accounts or HMRC submissions, it can lead to:

❌ Tax penalties from HMRC
❌ Inaccurate employee payslips
❌ Over- or underpaying salaries or deductions
❌ Incomplete year-end reporting
❌ Incorrect pension contributions
❌ Misleading financial statements

With regular payroll reconciliation, you stay on top of your numbers and avoid nasty surprises.

Who Needs Payroll Reconciliation Services?

You should consider payroll reconciliation services if:

• You run payroll internally and want an external check
• You use cloud software but need help aligning records
• Your accountant has flagged discrepancies in payroll reports
• You’re preparing for a year-end audit or HMRC inspection
• You’ve received an unexpected PAYE or pension notice
• You manage payroll for a growing team and want stronger internal controls

We work with small businesses, larger employers, accountants, and payroll providers to ensure every payroll line adds up.

What’s Included in Our Payroll Reconciliation Services?

Our expert team handles all aspects of payroll reconciliation for UK businesses, including:

✅ Reviewing payroll journals vs general ledger
✅ Verifying wages, bonuses, and overtime against contracts
✅ Matching HMRC liabilities (PAYE/NIC) with submissions and payments
✅ Checking RTI (Real Time Information) submissions
✅ Aligning pension contributions with scheme requirements (Nest, Aviva, etc.)
✅ Identifying duplicated or missing entries
✅ Detecting underpayments or overpayments
✅ Producing clean reconciliation reports
✅ Providing corrections and adjustment guidance
✅ Preparing you for audits or inspections
✅ Setting up monthly reconciliation processes going forward

Whether you need a one-off reconciliation or ongoing monthly checks, we tailor our service to fit your needs.

Our Payroll Reconciliation Process – Simple & Effective

We take a structured approach to ensure accuracy at every step:

Step 1: Information Gathering

We collect data from your payroll system, accounting software, HMRC records, bank statements, and payslips.

Step 2: Initial Review

We perform a top-level check of your payroll vs general ledger to identify areas of concern.

Step 3: Detailed Matching

We break down payroll transactions, comparing each payment, deduction, and contribution across multiple sources.

Step 4: Reporting

You receive a detailed report highlighting:

• All matched entries
• Any discrepancies
• Suggested adjustments
• Risks or compliance issues

Step 5: Adjustments & Follow-Up

We support your accountant or in-house team in correcting errors. We also offer monthly follow-ups if needed.

Key Areas We Reconcile

Our payroll account reconciliation service covers:

🧾 Gross pay – Salaries, bonuses, commissions, and overtime
🧾 Deductions – Tax (PAYE), National Insurance, pensions, student loans
🧾 Employer contributions – NICs, pensions
🧾 Payroll liabilities – What you owe to HMRC, pension providers, etc.
🧾 Actual payments – Bank transactions to employees and HMRC
🧾 Software reports – Payroll system records vs accounting system
🧾 RTI submissions – Alignment with HMRC online accounts

By cross-checking all these elements, we ensure total payroll accuracy.

Benefits of Payroll Reconciliation

✔️ Spot Errors Early – Fix issues before HMRC or employees notice
✔️ Avoid Penalties – No more surprises at year-end or during inspections
✔️ Accurate Reporting – Reliable data for financial statements
✔️ Better Cash Flow Control – Understand exactly what payroll costs you
✔️ Stronger Internal Controls – Reduces the risk of fraud or mismanagement
✔️ Stress-Free Audits – Be prepared for HMRC or pension scheme audits

With our expert eyes on your payroll, you’ll sleep better at night knowing everything adds up.

Who Performs the Reconciliation?

Our team of experienced payroll and accounting specialists carries out all reconciliation work. Each member is trained in UK payroll legislation, HMRC rules, and accounting principles.

We work seamlessly with your in-house payroll team, external accountant, or payroll software provider. We’re also experienced with Sage, Xero, BrightPay, QuickBooks, Moneysoft, and more.

Our Clients Say It Best

“We thought our payroll was fine – until we did a reconciliation and realised we’d overpaid thousands in NIC. Audit Consulting fixed it and now we reconcile monthly.”
— Owner, Construction Company

“As a small business, we don’t have a payroll expert. These guys spotted multiple submission issues and helped us sort them fast.”
— Retail Manager, London

“We now use Audit Consulting for regular payroll reconciliation. They work directly with our bookkeeper and make year-end a breeze.”
— IT Firm, Birmingham

How Much Does Payroll Reconciliation Cost?

We offer flexible pricing depending on your business size and needs:

We offer discounts for ongoing clients, accountants, and multi-entity businesses.

FAQs – Payroll Account Reconciliation

Q: How often should we reconcile our payroll?
A: Ideally, monthly. At minimum, quarterly or before year-end. Regular checks prevent problems from snowballing.

Q: Can we do reconciliation ourselves?
A: You can, but many businesses miss subtle discrepancies. Our experts catch issues you might overlook.

Q: What if we use software like Xero or Sage?
A: Software helps, but it doesn’t guarantee your payroll records match your bank or HMRC reports. Reconciliation still matters.

Q: What if we’ve never reconciled payroll before?
A: No problem. We’ll walk you through it and get your records in shape fast.

Q: Can you help fix errors?
A: Yes. We not only find the issues — we guide you in correcting them and liaise with HMRC if needed.

Don’t Let Payroll Errors Cost You

Payroll mistakes can cost your business thousands — and you often won’t spot them until it’s too late. Payroll reconciliation gives you the power to detect issues early, stay compliant, and keep your employees paid accurately.

Whether you’re a small startup or an established employer, payroll account reconciliation is a simple step that delivers serious peace of mind.

Let’s Reconcile Your Payroll Today

Ready to take control of your payroll accuracy?

We offer a free initial consultation and can carry out a one-time review or set up a monthly reconciliation service tailored to your business.