Payroll is one of the most important business details you have to keep track of if you want to avoid running your company into the ground. Mishaps like payroll fraud, fines, and strikes are all the result of poor financial management skills. That is not to say that managing employees’ payroll is an easy task, as there are dozens of things that can go wrong. However, it is not as impossible as it seems. With a solid plan, you will be able to stay on top of all these small details and manage payroll like a pro.
If you are looking for some tips to improve your payroll game, check out the next few points.
Get Your Documents in Order
We know that paperwork is tiresome, but it is a big part of running a business. Because lousy documentation can lead to many problems down the line, you must put some effort and time into completing important forms as soon as possible. This is especially the case if you have recently brought new employees into the fold. W-4, direct deposit, and state tax withholding forms are just a few of the documents you have to take care when hiring new people. Of course, if you provide other benefits, such as PTO, there will be extra forms to fill in.
Stay on Top of Things
Missing deadlines is never a good look! Not only can this lead to serious legal problems, but you will also have to placate disgruntled employees who are waiting for their next paycheck. Why go through all this hassle when you can just stay organized? If you have trouble remembering deadlines, you can use a payroll calendar to stay on top of things. In this regard, there are many ways you can create this calendar. A payroll calendar program can come in handy in case you want to automate the process. On the other hand, if you do not mind making one from scratch, you can use Microsoft Excel or Google Sheets. Regardless of what you end up choosing, make sure that you customize the calendar in a way that makes sense to you.
Invest in Payroll Software
Fortunately, we are not living in the Stone Age anymore, which means that you can leverage technology to manage payroll. According to the helpful information on https://www.mrpaystubs.com/, you should look for software that allows you to calculate payroll and generate reports for periodic audits. Paystub generation may also be a feature worth looking into. Generally speaking, payroll software is not expensive, but you still need to allocate a part of your company’s budget to purchase it. This is why it might not be a viable option for startups.
Establish an Accounting Department
When you are still in the early days of starting your business, you may not have the means to hire many people. However small your capital is, establishing an accounting department is a must. You do not have to go crazy and hire dozens of people if your budget does not allow it, though, because enlisting the help of just 2-3 employees should do the trick. When it comes to choosing accountants, you must look for individuals who have a specific skill set. Of course, you need to look for people who are skilled at using software and have vast knowledge about payroll regulations, taxes, and liabilities.
Periodic reports are extremely important in discovering gaps and payroll fraud. However, make sure that you are not the only one reviewing these reports to avoid mistakes. To do this, you can delegate two people to check the validity of the reports before passing them over to you. Then, you may ascertain them and put your stamp of approval!
Sure, audits are incredibly stressful, but they remain the only way of ensuring that everything is up to par. To make the process a little bit easier, break it down into smaller tasks. For example, you should first check documents to reconcile your records and make sure that there are no discrepancies. While automation can save you a lot of trouble, you still need to check your software for errors; you never know!
By implementing some smart practices, you can rest assured that you are managing payroll efficiently and accurately. The above suggestions should work for all companies, regardless of their scale and niche. Make sure to pick the strategies that suit your business, and most importantly, keep your employees informed of any changes you add to the system to avoid miscalculations and complaints.