For any business large to small, payroll is a big deal. It’s not only one of your biggest expenses, it’s one of your most important financial tasks. Payroll processing can take a lot of time, but getting it right is extremely important. Many business owners face questions and confusion when it comes to payroll, and all of us would love to find ways to make the process faster and simpler. Fortunately, there are ways to do this without sacrificing accuracy. Here are 5 ways to make processing your payroll easier.
- Use direct deposit and electronic stubs
Depending on how many employees you have, your business could save significant money using direct deposit pay them. It’s true that you might have employees that aren’t keen on this idea or don’t have bank accounts. In these cases, pay cards might present a good option. In any case, handing out or mailing paper pay stubs can be both expensive and time consuming, so you might consider electronic stubs sent via email.
- Use technology
Aside from electronic or non-paper payment methods, there is plenty of technology available that can make processing payroll less painful. A carefully-chosen payroll system can add automation and efficiency that you could never achieve on your own. For the best results, look at systems that integrate payroll with human resources (HRIS).
- Involve managers and employees
Some payroll systems include a level of self-service. This means that managers and employees must log their hours, authorize time off, verify expenses, etc. A lot of could-based payroll systems include this feature, which can go a long way to streamlining the payroll process.
- Clarify policies and procedures
When you set up your business and started hiring people, you created policies for PTO, expense reimbursement, commissions, and more. The more clear and widely applicable those policies are, the less confusion there will be at payroll time. If procedures vary for different levels or groups of employees, this will create more work for you. Keep that in mind when deciding how to apply policies and procedures across your organization.
- Consider outsourcing
There is good reason why the vast majority of small businesses end up outsourcing their payroll. Letting an accountant or third-party specialist handle it can take a huge weight from your shoulders, as well as ensure everything is processed the right way. Outsourcing your payroll typically means more than just writing paychecks. It can also help you mange tax liabilities, government compliance, commission structure, and much more. For most business owners, outsourcing payroll just makes sense.
Accurate, efficient payroll processing is vital to the health and growth of your business. The process can be tricky, but that doesn’t mean it has to be a stumbling block for you. With these 5 strategies, processing payroll can be faster, easier, and less stressful than ever.