Every year, more than 627,000 small business owners open their doors for the first time. Many of those businesses rely on their employees to keep things running smoothly so the company can grow quickly.
Whether you’re a small-scale operation with three employees or a larger business with 50 team members on staff, you need to manage payroll effectively.
For most business owners, payroll can be one of the hardest tasks each week. Here are a few proven payroll management tips to help you take control of the process.
1. Stay on Top of Deadlines
As a business owner, you’re responsible for filing taxes each year and making estimated quarterly payments throughout the year. Your payroll taxes are part of those payments and if you miss a single deadline, you risk facing fines. Worse, you increase your risk of getting audited.
The best thing you can do as part of your payroll management efforts is to stay on top of deadlines throughout the year.
If you handle payroll on your own, make sure you have all the necessary paperwork filed on time every quarter. If you outsource to an accountant, follow up with them and make sure they have the information they need to file on your behalf.
2. Invest in the Right Software
When it comes to implementing a system for payroll, technology can make all the difference. Invest in software that makes scheduling your employees and contractors easy. Provide your team with an accurate way to track their hours and log their time worked each shift.
You can also use a paystub creator to give you a physical record of each employees’ earnings throughout the year.
Without those simple programs in place, your payroll and your team’s wages won’t be as accurate as they should be. Remember, the more discrepancies there are in your payroll, the harder it will be to settle up at tax time.
3. Keep an Eye on Cash Flow
No business owner wants to run short on cash and have to delay paying their team. This means you need to know where your cash flow is, how much money you’re bringing in, and what your projected expenses are for every pay period.
If you’re running short at any time, make the necessary changes quickly so your team won’t suffer the consequences.
Remember, as your cash flow situation improves, it’s helpful to invest some of that money back into your team and business. Offering raises as you can is the best way to retain employees and contractors. The only way to know when you can is to monitor your cash flow every month.
Follow These Payroll Management Tips
Staying on top of payroll and keeping an eye on your books is the easiest way to improve your business’s financial situation. Keep these payroll management tips in mind and implement them in your company as soon as you can.
The sooner you do, the better off your business and your recordkeeping efforts will be.
Running a business takes time, patience, and determination. Check out our latest posts for more tips to help you streamline your daily operations.