If you’re a small business, you’ll be handling many things on your plate. As much as possible, you wouldn’t want to be bothered by menial things, such as payroll, that can be automated. Another matter is the question of whether or not you’re really accurate when calculating the payroll or taxes. So, when you have a small business, you need to manage your payroll more efficiently.
What’s a Payroll?
Payroll is the process that companies go through to compensate everyone working for them. However, payroll isn’t as simple as just disbursing cash to a set of people. There are several components and parts in a payroll.
Your payroll system needs to be able to calculate and distribute the salary of every employee. On top of that, you also need to provide financial records to your employees with a breakdown of salary, tax, bonus, overtime pay, and holiday pays. This system will also be the one to check the attendance of your employees.
How To Manage Your Payroll Efficiently?
Now that you know the nature of payroll, here are some ways on how to efficiently manage your payroll.
1. Invest in a Payroll Software
To make your business run more smoothly when it comes to its financial aspect, it’s best that you also invest in payroll software. There will be many things that’ll require your attention, and using software for your payroll system will make it easier for you on a daily basis.
With all the software available, you need to do your own research and use your better judgment when it comes to selecting the right software. Choosing the right payroll software is very important because not all kinds of software will give you the same advantages.
As a tip, it’s best if you go for the software that allows you to host it in a cloud. When you have your payroll in a cloud, you can access your data regarding payroll anytime and anywhere you are in the world.
Investing in a payroll system will also automate your systems, decreasing the probability of human errors in your payroll. In addition to that, an automated system will make your processes simpler and will also save you a ton of time. As cliché as it may sound, but time is really money, most especially when it comes to your business.
2. Have a Timekeeping System
To have smoother operations and organization in your payroll system, make sure that you have a system to keep track of your employees’ time, both in and out. Then, you must link this timekeeping system to your payroll system so that your salary calculations will be correct.
It’s best if your timekeeping system comes together with your payroll system. By doing this, you will prevent any misalignment with records if your employees try to fabricate their time in and time out. This way, you’ll have an accurate record of how long your employees are working every single day.
3. Go Through Payroll Training
Having to fix the payroll system and managing it at the same time is not an easy feat. Because policies and technology keep on evolving and changing, it’s important that the people who are handling your payroll system be updated. To do this, your payroll team must undergo regular training sessions so that they can keep your systems updated.
While learning about new technology and policies, your Human Resources or Accounting staff will also be up-to-date with the latest news concerning laws on employment and policies regarding tax regulations. It’s best to control what you can control, which includes abiding by the law. Once a mistake is made, it’ll be difficult for you to rectify it.
So, to be more efficient, just make sure that your staff is well-informed all the time. This is key to having an efficient and effective payroll system.
4. Synchronize Paydays
Inside a company, there are times when there are contractual employees and regular ones. Due to the different nature of each, the payday for each kind of employee might also differ. However, if this is the practice of your business, it’s going to be inefficient for your payroll system. Disbursing at different times of the month for a different set of employees might just lead to many confusions.
To be able to make your processes more efficient and save time, it’s best that you synchronize the paydays of all employees in your business, whether they’re contractual or regular employees.
5. Go For Paperless Payroll
When you pay your employees, you don’t only wire or give them cash. Included in payroll is providing a payslip that bears the record and breakdown of the salary of your employees.
Several companies still print this on paper. However, given the technology and other payroll software today, you can provide online payslips for your employees rather than giving them a paper form. By doing this, you won’t need to hire additional people just to manually and physically prepare these payslips. This will not only save you money but also save you some time.
You can set up an online portal that employees can access. In this online portal, your employees should be able to keep track of how much they’re earning every month, taxes paid, holiday pays earned, overtime fees, and other things concerning their pay.
From the perspective of the business owner, you can also see how much your employees are getting paid anytime and anywhere. At the same time, you’ll also be able to see how much time they put in when working. On top of that, you’ll also be able to cut down on costs when it comes to printing paper and hiring people to do this manually.
Thus, going paperless is a win-win for both the employee and employer.
With these tips and recommendations on managing payroll, you can now have a more efficient payroll system. You’ll have more time to focus on your business and making plans rather than computing endlessly for the payroll.
Payroll is an essential part of your business, but you can make it work seamlessly. Follow these tips to lift some weight off your shoulders.