Payroll is one of the most important elements of any business. Your employees must be paid accurately and on time, and formal records and documents must be filed properly. In a small business, payroll can be a challenging addition to all the other tasks at hand. Here are four tips for managing your small business payroll.
1. Think About How You Pay Employees
The method and frequency you choose to pay your employees can have a substantial impact on the complexities of your payroll system. Managing payroll takes more work if you pay your employees more frequently, such as every week. Paying staff wages every month instead can remove a lot of admin tasks which come with managing the company payroll system, making it easier to keep track.
It’s also generally easier to pay your employees into their bank account directly rather than paying in cash or making transfers via other platforms. Having a standardized method for all employees means less work managing the payroll system.
2. Outsource Your Company Payroll
One of the most popular ways to effectively manage a payroll system is to outsource it to a specialized company. This can improve accuracy within the system, return precious time to senior people within your business, and cut costs in the long run.
Looking into a service like G&A Payroll allows you to utilize programs which make it easier to see where your business is up to with staff costs and payroll. You can have access to contemporary services at a fraction of the cost, which is a big reason why so many companies choose this option.
3. Integrate Payroll into HR
If you already have existing human resources functions within the company, consider integrating your payroll system into this department. While finance teams often look after the payroll system, it is becoming increasingly common to integrate it within HR.
Payroll and HR are intrinsically linked in many ways – from promotions and pay cuts to new starters and leavers in the company. Integrating payroll into an existing team also means you can give oversight of this function to a manager or director already within the business instead of hiring new teams and leaders.
4. Invest in Quality Software
It can be much easier to manage a payroll system for a business when you are using good quality software. Reliable programs and services mean you are less likely to run into technical problems, removing the need for constant customer support from the provider.
Quality payroll software also means you can generate weekly or monthly reports from the system for the business, helping you to keep track of staffing and financing easier.
Managing a small business can come with a range of challenges, including management of the payroll system. Paying your employees on time and keeping the company budgets in line are two of the most important factors to be aware of when looking after payroll. Outsourcing this function, upgrading software, and integrating it into existing teams are some of the ways you can manage your small business payroll more effectively.