A successful business consists of a large number of moving parts, all working in perfect harmony with one common goal in mind: efficiency. However, this harmony can easily be disrupted when tedious tasks such as payroll take up valuable time that could be better used in other areas.
Additionally, when these tasks are not automated (or have additional efficient processes in place), costly mistakes are more common, which can affect every employee. Businesses can streamline payroll through the use of software, the establishment of standard procedures and a focus on tax responsibilities. By doing so, they can greatly improve the payroll process. Here is what you should know:
1. Automating Payroll — The Impact of Software
Payroll is a necessary business practice. However, this does not mean that traditional methods involving manual “pen and paper” payroll practices cannot be replaced by modern alternatives in the form of payroll software.
Payroll software gives businesses the freedom to devote time to other areas of the organization that require attention. Furthermore, automating payroll through the use of software significantly reduces the possibility of human error (thus preventing companies from having to incur in additional and unexpected expenses). Thus, not only do employees get their paychecks when they expect them, they also get the exact amount they expect.
2. Developing Standard Procedures — Organizing Payroll
Automating payroll through the use of software is ideal, but that is not the only method. Businesses can streamline the process by establishing a defined set of tasks that they can realistically practice on a biweekly to bi-monthly basis. Developing processes and practices (such as paying employees on a bi-weekly basis) is a great way to avoid confusion and stress due to a lack of order.
Additionally, communicating these processes to others within the business will foster a more productive work environment in which everyone knows that they will be compensated on time for their efforts (and can therefore work efficiently toward a common goal).
3. Payroll and Taxes — Staying on Top of Fiscal Responsibilities
Streamlining payroll allows businesses more time to devise procedures that may lead to the growth of the business. More specifically, making payroll practices as efficient as possible makes tracking fiscal responsibilities more manageable, thus preventing business owners from having to pay penalties (or putting their business at risk). Because of this, companies often delegate payroll duties to third parties to ensure that they are properly tracked and carried out, as this makes fulfilling tax duties easier. Therefore, businesses never have to worry about overlooking specific tax laws or regulations.
Verdict: Why Streamlining Payroll Matters
The goal of any business is to grow while succeeding at every level. However, it is quite difficult to do this if payroll is not properly carried out. Human error can represent a big threat to organizations from both a financial and legal perspective. Additionally, manual control of payroll is time-intensive, taking many employee hours away from tasks that could potentially push a business forward.