Payroll is one of the crucial parts of any business, regardless of size and industry. However, it’s also one of the most stressful and time-consuming tasks since there are many factors to consider.
In addition, the process is made even more complex by the taxes and other fees you need to transfer to the IRS (or your country’s financial authority). In this situation, even a small miscalculation or omission can end up in fines and other consequences that will be difficult to deal with.
Luckily, there are ways to make payroll more accurate without losing processing speed or having an army of accountants dedicated to just this task. Moreover, some of these methods may inspire further changes in your business, leading to better productivity and overall efficiency.
Use Automated Tools
In a world where remote working is quite common and we have various intelligent systems taking care of most basic business tasks, no one should be forced to deal with a large set of data (like the one needed for payroll calculations) in an Excel file!
Small businesses and solopreneurs have access to light automated tools, like a paystub generator that can be used to prevent any calculation mistakes, and keeps the data safe from prying eyes. In addition, such a tool reduces the time spent with payroll calculations and helps with increasing accuracy and overall productivity.
In addition, by integrating the payroll process with online tools or third-party networks, you also have access to accurate reports based on historic data that are relevant for your business.
Practice a Paperless Approach
Not only will you save a ton of storage space, but you’ll also take the right steps towards supporting the environment. This is something the new generation of workers appreciates and respects, so it may create other types of opportunities for your company.
Still, the main idea is that, if you store the data electronically, they are easier to access and check. Moreover, paperwork takes time and it’s more difficult to handle, once it starts to pile up. Therefore, a paperless payroll system is the best option, especially now when you can submit all kinds of forms online.
Have a Well-organized Payroll Calendar
Mistakes can happen even when using automated systems if the data introduced is not accurate. And this tends to happen if there isn’t a system in place that guides the employees about the type of data they can introduce and when.
Therefore, if you have a complex team (full-time and part-time employees, freelancers, independent contractors, and so on) it’s important to provide each group with easy-to-follow rules about how they should send in their work reports and when. Based on this, you can create specific payroll calendars that need to be checked and maintained on a regular basis.
When you have the right tools and resources for your business things get a little easier, therefore, it’s best to consider these aspects from the start. It may take a bit longer to get the activity and profits going, but it is best to have a solid foundation. As things get more hectic, you’ll be happy that you invested in these systems!