Is processing your payroll efficiently and effectively something your business struggles with? If so, you're not alone-thousands of small businesses struggle to manage payroll every pay period! From accurately calculating individual paychecks to consistently distributing payroll on time, there are hundreds of things that can go wrong and only a short period of time to complete them. The key to running a successful payroll is combining a strategic approach with an organized payroll system, so today we'll be looking at how using online payroll software can help you stay out ahead of your payroll, not simply struggle to keep up.
Optimize Your Onboarding Process
Payroll responsibilities begin at the onboarding stage. While HR will gather the majority of employee information, the payroll department will also need to collect employee information via Form W-4, which will then be used to calculate ongoing payroll deductions. If your company relies on physical forms throughout the onboarding process, simply getting an employee through the paperwork is a time-consuming task. Many forms contain much of the same information, but since they're physical forms, the information can't simply be copied automatically: it will all need to be filled out by hand. By using complete payroll solutions (which provide both payroll and HR software on a single platform), you can cut the onboarding time in half since information previously entered won't need to be resubmitted. Instead, it can be automatically copied over the additional forms, and the information will be readily available to both departments.
Switch to Digital File Management
With paper-based file management, all paperwork must be neatly organized using folders, drawers, and file cabinets. This works well at the beginning of a business, but as the company grows and you start to accumulate more paperwork, this system quickly loses its effectiveness. Papers can be misplaced, folders become unorganized, and simple data retrieval can easily turn into an all-day task. However, by digitally managing your files using a cloud-based payroll management system, important information can be quickly retrieved using the 'Search' function. This not only helps speed up your processing times but helps open up valuable office space as well.
Quit Producing Manual Reports
Payroll software, in addition to storing your files digitally, can also help when it comes time to produce reports. Software such as UZIO allows staff to quickly generate reports in a matter of minutes using the most up-to-date information available. Instant availability of reports can be useful if your business gets audited, but can also help provide valuable insights into the behind-the-scenes processes of your company, which can then be reviewed at company, staff, or stakeholder meetings.
Automate Payroll Calculations
The most time-consuming part of payroll is calculating individual paychecks. Each paycheck requires staff to tally employee hours, calculate their gross paycheck, apply the necessary taxes, then factor in any additional deductions to produce their net paycheck. Since this process must be completed for every individual employee, it can quickly get out of hand for companies with a large workforce. Unlike manual processes, payroll software doesn't take a long time to calculate payroll, since paychecks are calculated automatically as the T&A information is entered into the system. Using the most recent tax rates and applicable deductions, paychecks are calculated almost instantly for each employee, allowing payroll staff to attend to other matters at hand.
Manage Direct Deposits Using Payroll Software
Many companies compensate their employees using direct deposit, but manually entering each deposit is yet another time-consuming task that can be automated. With online payroll solutions, employee direct deposit information only needs to be entered once into the system. After that, the system will automatically perform these deposits each pay period, eliminating the possibility of an employee receiving their paycheck late (or not at all).
Nearly every problem most business owners have with their payroll can be easily addressed by using payroll software. Not only can software solutions streamline the entire payroll process, but they often do so at a much lower cost than traditional methods. Even if payroll management isn't something your business is currently struggling with, it still may be worthwhile to consider a digital approach. After all, if there is a more effective method available at a similar cost (or even less!), the question isn't why. It's 'why not?'.