Payroll is a core part of running a business, and it’s a critical function that can have significant monetary consequences if mishandled.
Fortunately, there are many ways to streamline your payroll process and minimize errors. Follow these seven tips to get the most out of your payroll system!
Set Up a Payroll Calendar
Payroll calendars help you organize your payroll cycle. They include information about pay periods, pay dates, and bank holidays.
Having a well-organized payroll calendar means you can keep your business running smoothly without hiccups. Moreover, it can help you stay in compliance and avoid penalties for missing deadlines.
A payroll calendar will also help you determine when to collect employee timesheets and run payroll. This will save you time and money and ensure your employees get paid on time.
Xero makes it easy to set up a pay calendar and add it to your payroll. You can set up different calendars to pay employees at varying frequencies, such as weekly or biweekly.
Organize Your Records
Organizing your records is essential, especially if you have many of them. You can choose from various methods, and it’s necessary to find the one that works best.
The most popular method of organizing your records is alphabetical, but there are many other options. Depending on your listening habits, genres, and chronology, try out a different approach.
Another option is to organize by when you last listened to the record. This method is ideal for people who own smaller albums and are more likely to listen to them regularly.
Having clients set up automatic payments can make the billing process easier and reduce your workload. This can also give your clients peace of mind that their invoices will be paid on time, giving you more time to focus on other business needs.
Payment automation enables faster payments by streamlining invoice approval and authorization, sending payments electronically, and linking to the accounting system once approved. It also improves transparency and control and allows for easier access to essential data that helps companies measure KPIs and metrics such as invoice aging, payment mix, and rebates.
Automating your AP process can also help you avoid errors and duplicate payments, saving valuable company and customer time. These mistakes can erode supplier relationships and hurt your bottom line.
Make Payments on Time
There’s no denying that the most crucial element of your payroll system is to make sure your employees get paid on time. If you don’t, your business could be facing a host of snagging penalties from creditors and vendors alike. You’ll also need to keep a close eye on your budget as you work your way through those monthly bills.
Your payroll software will likely do the heavy lifting. If you’re lucky, you can automate the payment process via electronic calendar reminders or automatic direct deposit. Remember to mark the calendar as soon as you receive your paycheck or other large sums of money, so you remember a thing. You might be surprised at how much money you can save by paying on time.
Pay Your Employees on Time
Payroll is an important part of your business, so it’s vital to get it right. Having the proper procedures in place can save your company time and money in the long run and keep employees happy and satisfied.
It’s also important to ensure your payroll process is open and transparent. Misunderstanding payroll policies can harm employees’ morale and negatively impact their productivity.
It’s a good idea to ask your employees for their feedback and questions about your payroll processes. This will give you a sense of how your payroll system is working and what needs improvement.
Keep Your Employees in the Know
It is essential to keep your employees know of their roles, pay grades, and other related information. They need to understand how their actions impact the company and what they can do to improve their situation.
Whether by sending them monthly meetings or conducting a survey, providing your team with a voice can help them feel more engaged in the company and make them more likely to stick around.
Employees can also become disgruntled if they feel their manager doesn’t care about them or is not a strong supporter of their professional growth.
Accurate personal records can make it easier for payroll to process your business’s payments, including those for fringe benefits like gym membership reimbursement and personal use of a company car. This can avoid penalties, fines, and potential investigations.
Stay in Compliance
Payroll compliance involves all federal and state laws you must follow when processing payroll. Failure to adhere to these laws can cost your business in fines and penalties.
It can also make it harder for you to keep up with the changes in legislation. Tax law often changes multiple times a year, meaning you have to spend time and money training employees on new rules.
Having a robust system for keeping up with employee personal information can help you stay in compliance with payroll. This includes ensuring you have accurate personal data, including Social Security numbers, for each employee.