In the early stages of your business, you have to wear many hats at once, including accountant and human resources manager. In fact, maintaining these administrative tasks often take up the bulk of your time as an entrepreneur, leaving you less time to focus on growing your business. So what’s the solution? Payroll software! A payroll software provider can automate all or most of your company’s payroll needs, making it easier to get paid and saving you plenty of time and money in the process.
5 Steps SMB should take to switch to a Payroll Software Provider
Identify if your business needs a payroll provider
If you’re not sure whether you need a payroll provider, then it might be worth doing some research. If your company has multiple employees, is withholding taxes from employee paychecks, and keeps track of things like payroll withholdings, workers compensation insurance premiums, and so on, then it’s probably time to look into finding a vendor. This doesn’t mean that smaller companies—those with only one or two employees—should run out and find one right away. But if your company is growing or will be hiring more people in the near future, then it may be worth spending some time looking into providers to see if they offer everything you need at an affordable price.
Explore your options when searching for payroll software
If you’re in charge of payroll at your business, you know how much time and money it can take. And payroll isn’t necessarily intuitive; in fact, it can be extremely tricky. As a small-business owner, you probably don’t have much experience with payroll processes; if you do, then you know that there are countless things that could go wrong. For instance, tax codes change constantly (and they differ by state). If payroll is handled in-house—whether manually or with software—your company is vulnerable to mistakes or worse yet, fines for late payments. Before choosing a system for your company’s payroll needs, look at several different options so that you understand your different choices and determine which one will best suit your needs.
Choose the software that’s right for you
To make sure your business is compliant, pick a payroll software package that’s been approved by an IRS-approved eFile provider. This way, you can be sure your data is being transmitted securely and processed correctly. In addition to helping ensure accurate calculations, these services also offer guidance on which software to use based on your company size, location, and industry. For example, there are several different types of solutions available for construction businesses or businesses with a high number of part-time employees. Another option is a cloud service that provides tools for managing workers’ compensation insurance claims and benefits administration. No matter what type of business you have, it’s important to work with a trusted payroll solution provider that offers qualified solutions specifically designed for small businesses like yours.
Setup and train employees
Chances are, you’ll need to hire employees to get your new business off the ground and up and running. To make sure things run smoothly and employees get paid correctly, it’s a good idea to hire an accountant. If you’re not ready to bring on an accountant, there are still steps you can take to minimize payroll troubles: From taking care of paperwork issues (such as keeping records of employee earnings) through configuring your time tracking system for payroll purposes. A simple call or email can save you days of headaches later on when it comes time to do payroll. Here are some common problems that entrepreneurs have encountered in their businesses—and how they were able to fix them by having a good relationship with their employees.
Go paperless! (It’s easier than you think!)
Business owners who are just starting out, for whatever reason, often don’t think about taking advantage of technology that’s available to help them run their business more efficiently. As a result, they end up wasting time and money by having to do things manually. Going paperless is one example—it’s relatively easy to scan receipts into your computer and take care of other day-to-day tasks digitally. Of course, if you have limited experience with computers or technology in general it can be overwhelming at first, but once you get started it gets easier! And every business owner has to start somewhere.
Small- and medium-sized businesses (SMBs) may think they don’t need to have payroll service because their employees are part-time. The reality is that all employers should offer some sort of financial compensation for work done. Besides, even a small company with only a few part-time or seasonal workers might find it difficult to keep track of everything without a good payroll system in place. But you shouldn’t rush out buy the software but look for the best payroll software for small business.