Two simple words — payroll management — can strike fear into the heart of any budding entrepreneur. Few tasks that you’ll face as a new startup owner can be as complicated as payroll management.
Done well, however, payroll management will ensure that your business keeps running smoothly. Follow this guide with five tips to do just that.
Find the Right Balance with Your Payroll Schedule
The key to payroll management is finding the right balance with your payroll schedule. Too frequent, and it’s too much of a burden on you. Too rare, however, and your employees will complain and may even leave you for other companies.
Decide on a payroll schedule that matches up with employee expectations and a workload you can commit to. Remember that making any kind of change to your schedule once its set is no easy task.
Leverage the Right Software
The right payroll management software will ensure that you spend as little time on payroll management as possible. After all, the more time you spend on that, the less you’re able to spend on revenue-generating activity that will actually grow your business.
The right payroll software can automate direct deposits, paycheck calculations, and even reconcile bank statements. The software you get should depend not only on your budget but also on the size of your company and industry you serve. Go not with the most expensive software your budget can accommodate, but rather the one that’s tailor-made for your company size and industry.
Don’t Forget Withholdings
Taxes are a pain, yes, but you still can’t forget them. Make sure that all of your employees have filled out W-2s so you know exactly how much to deduct from their paycheck.
Doing this upfront will save your employees a lot of time and headache when they’re filing taxes in April.
Listing benefits that employees receive on their pay stubs has one major benefit. It helps your employees remember the benefits that they’re receiving from the company.
As an employee, when you see your paycheck, it’s easy to get discouraged after seeing all the tax withholdings and such. By listing the benefits and the amount withheld for each, you can remind your employees of all the good stuff they get as part and parcel of working for your company. This will keep employees happy.
Last but certainly not least, consider outsourcing your payroll management. Again, keep in mind that the time you spend learning how to do payroll is more time that you could have spent growing your business. Use payroll services Australia to put more time for revenue-generating activity back in your day.
Payroll Management Made Easy
Ultimately, while payroll management may seem complex at first, it isn’t that bad once you get the knack of it. In addition, once you set it up the first time, it can run itself in the future if you have the right software for it.
For more business and accounting advice, make sure to check out the rest of the articles on the website!