Payroll is something that starts out simple enough. You start your business, hire a few Team Members, and things move along pretty well. It’s easy enough to keep everything in line at first, but what happens to most businesses is… they grow!
This is a great thing, but it also means that payroll will become more complicated. As such an essential aspect of your business, it must run smoothly. After all, getting paid is the primary reason that most people come to work.
Here are a few tips to help you manage payroll effectively:
Simplify
Payroll is something that can become overly complicated, and the importance of simplifying it can’t be exaggerated. Many companies, especially small and medium-sized ones, have their own quirks about managing their payroll. This can make it complicated for somebody else to step in, or for someone new to be trained.
Wherever you can, keep things as simple as possible. Switching to direct deposit or using ABA files can help to simplify the process. This will severely reduce the amount of work put into issuing and tracking payments.
Schedule
Once per year, at minimum, your payroll professional must take some time to create a payroll calendar. This will allow them to highlight any dates that may cause a delay in your employees getting paid.
This is an excellent way for you to plan for any potential drawbacks or other issues that may arise from holiday closures or oddities in the calendar. Making a payroll mistake is a surefire way to lower Team Member morale, so it’s essential to be aware of these dates ahead of time.
Once created, distribute the calendar to your managers so they can share the information with their Team Members. This will keep everyone aware of any potential delays in getting paid that may come up.
Automate
Your computer can become your best friend by finding the right software to help with payroll. The right software can automatically take care of simplifying and scheduling the payroll, which in return, will free up valuable time for your payroll specialist.
Using a computer also eliminates the potential for human error in payroll processing and creates a clear picture of your finances.
Brush up
Rules and regulations can frequently change when it comes to payroll. It’s crucial to stay up-to-date on any changes in your state and proactively plan for them and actively manage payroll.
Correcting a payroll error can be very time-consuming; knowing what’s happening ahead of time is a good way to try and avoid this. More and more Team Members are being hired remotely, so it’s essential to be aware of any regulations that may affect those that are geographically located in a different area from your business.
Get help
There will come a point in time when your growing business will have to start outsourcing its payroll processing.
There is a multitude of options out there for hiring a payroll specialist, and there are many available online. Choose the one that best suits you without having to leave your desk. This will take the pressure off of you. By hiring an outside professional, you can be satisfied knowing that your Team Members will be paid correctly and on time.
Final thoughts
Payroll is easily managed when it is set up correctly, straightforward, simple, and coordinated. When it starts to become too tough to maintain, it’s likely a sign that your business has grown, and you’re ready for outside support.
If you have any questions or need any assistance to manage payroll, feel free to Join the conversation…