Do you find that payroll takes you a significant amount of time every month? Small business owners will often find that payroll is a cumbersome process, and it grows exponentially with each additional employee. Luckily there are some ways that you can streamline the process.
1. Automate Your Employee Time Sheets
Part of what makes payroll take a long time is correcting and collecting employee time cards. If your employees are manually reporting their time to you, it may be very difficult for you to assemble all of the relevant information. There are free software solutions that your employees can log into and track their hours. These software solutions usually track their earnings too; all you’ll need to do is print out a report when you need to.
2. Pay Through Direct Deposit
Simply physically tracking checks can take a lot of time, especially if your employees are less than careful about depositing their checks on time. Paying through direct deposit makes it much easier. A direct deposit will be deducted from your bank account all at once and automatically deposited to your employees so you don’t have to track the actual cash every pay period. Otherwise you could easily overdraft your account by not taking into account uncleared checks.
3. Switch to Leased Employees
If you don’t want to deal with payroll at all, you might want to consider the benefits of leased employees. Many companies today lease employees rather than hiring employees directly. This doesn’t mean that you have temporary employees; you still have the same employees, but they’re paid through a parent company and you pay the parent company for their services. This allows you to sidestep many of the traditional complications of an employee and employer relationship — including having to run payroll.
4. Switch to Computer Printed Checks
If you need to cut manual checks, it’s still a good idea to switch to computer printed checks. Computer printed checks can be printed all at once through an ordinary printer — you just need to sign them once they are printed. This isn’t just for convenience; it also reduces any potential mistakes. Computer printed checks can be used in combination with accounting software so that checks are cut properly each time.
You may also want to consider asking your accountant for suggestions. Even if you don’t want to hand over all of your payroll responsibilities to an accounting firm, they usually have some ideas for making the process a little easier. Contact a company like Padgett Business Services Accountant for more information.