Did you know that the average small business owner spends 21 days per year (or 5 hours per pay period) calculating payroll taxes?
Do you feel like you’re wasting time every week or two weeks calculating taxes and managing other payroll-related tasks? Do you need help updating your payroll process?
If so, here are three tips that you can try today.
1) Streamline Payment Schedules
Do you use more than one payment schedule for different employees? For example, do you pay some people weekly and others bi-weekly or monthly?
If this is the case, it’s no wonder you’re stressed out and spending so much time on payroll management!
The easy way to simplify payroll and save yourself valuable time each week, try streamlining your payment schedules. Pay everyone on the same schedule, rather than trying to juggle and keep up with multiple payment periods.
Initially, this might be irritating to your employees, especially if they’re going to start getting paid less frequently. To reduce frustrations, be sure to give everyone plenty of notice before you make the switch. This will give them time to get their houses in order before they pay schedule changes.
2) Use Payroll Processing Software
Are you utilizing payroll processing software to help with payroll-related tasks, or are you trying to do everything on your own?
If you’re not using any kind of payroll software, now is the time to start. Payroll software helps you to automate all of the tasks related to paying your employees and managing your business’s money.
Besides automation and proper cash management, using payroll processing software has other essential benefits. For instance, it can save you time as your payroll team can quickly process and generate payroll reports. It also ensures proper management of employee records. Payroll software usually has a record-keeping feature where you can store information about attendance, leave, and other relevant data.
Moreover, payroll processing software can help reduce errors associated with computing and data input. It can also keep your payroll information safe from unauthorized access or data breach.
With that said, investing in payroll processing software can be an excellent idea. However, with a variety of software to choose from, it’s easy to pick the inappropriate one. That’s why When you’re choosing between different payroll software options, be sure to check out the sample pay stub templates that come with the software. This will help you to find one that meets your business’s unique needs.
Read reviews, too. This helps you to see what other business owners have to say about a particular software before you invest in it.
3) Outsource Payroll
Have you found that you simply don’t want to learn how to process payroll efficiently? Do you have way too many tasks on your plate already?
If this is the case, it might be a good idea to outsource payroll to someone else. Look into hiring a bookkeeper or another finance professional who can help you manage your money and get everyone paid on time.
They can provide you with bookkeeping support, such as handling accounts payables and receivables, making payroll tax reports, and generating financial statements.
Thankfully, there are many companies out there that offer quality, reliable bookkeeping services. To help you find the right one, consider seeking referrals from the business community or browsing through the internet. Once you have a list of prospects, check their reputation in the market by visiting their website or reading some third-party reviews. By doing all these, you may be able to find the right professional for your payroll needs.
Remember, you don’t have to do everything as a business owner.
If you don’t have the time or energy to handle things like a payroll process flowchart, it’s okay to hire someone to do it for you. This frees you up to do other tasks, including those that help to make your business more profitable.
Improve Your Payroll Process Today
Small business payroll processing definitely comes with a lot of challenges, especially for new business owners. Luckily, if you implement the three tips listed above, it’ll be easier for you to create a payroll process that works well for you and your employees.
Want more advice on managing funds as a small business owner? Head over to the Small Business section of our site today to continue learning.