5 Tips for Making Payroll More Efficient

 

For small business owners, payroll is always a difficult process. It’s also one of the greatest expenses businesses face. It’s obviously necessary for successful operation, but the time and man hours it requires is a major drag for many businesses. Accuracy is essential, and if there are any mistakes, it’s a stressful process to rectify the problem. If you’re tired of dealing with the hassles and mistakes that come with unproductive payroll, here are some tips for simplifying the process.

  1. Employ Software

For a more streamlined, simplified approach to this vital process, a cloud-based payroll solution is ideal. Good software will include easy setup and quick, simple procedures that will allow your team to complete payroll with ultimate accuracy within minutes. Getting a payroll solution that’s cloud based is ideal, since it provides access from anywhere and unlimited and secure storage for employee information.

  1. Write Policies and Keep Them Simple

Policies are good for keeping payroll employees on the same page, but when the policies are unclear, unwritten, or complex, avoiding mistakes is nearly impossible. Don’t overcomplicate policies, and make sure they’re clearly detailed for your entire staff. Encourage employees to consult the written policies before making decisions or inquiries. This will eliminate confusion and significantly reduce time spent completing payroll.

  1. Use Direct Deposit

Most companies have switched over to direct deposit, but some are still hanging on to the manual check form of payment. Even though direct deposit costs a little more, it’s much more efficient. It virtually eliminates inaccuracies and ensures employees are paid on time. It also reduces the risk of employee mistakes, since it’s impossible for an employee to lose a payment made through direct deposit.

  1. Create a Payroll Calendar

This lets the payroll department know when to track employee work and make payments. Employees know when to expect payment, which limits inquiries, and payroll employees are held to a routine standard for making payment. It keeps everyone unified in payroll deposits and helps to eradicate errors.

  1. Get Employees Involved

Take some of the load off of your payroll department by mandating that employees stay more involved in the payroll process. Have them record attendance hours, sign for paid time off, verify expenses, and participate in other payroll-related processes when possible. When your employees are involved in the process the payroll department spends a lot less time tracking down information.

The payroll course will continue to eat up time and money if you don’t make some changes for greater efficiency. There are many things that can be done, but these are some of the more effective tips known in the industry.


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August 29, 2016 5 Tips for Making Payroll More Efficient