Over half of the working population works in small business. With that many people on your payroll, mistakes are bound to happen.
Such mistakes can be costly, usually coming with either employee dissatisfaction or even IRS penalties. This can cause financial stress to even successful small businesses.
Are you looking to improve your payroll options and need some guidance? Don’t worry, keep reading below for five options that will work with any small business.
1. Do it Yourself
While not always recommended, it is possible to handle payroll yourself if you are confident and love numbers. This is best if you have fewer than five employees and you have ample time to handle everything.
Many small businesses run into payroll issues because they underestimate what it entails. There are many things to keep track of including W-2s, benefits, and in some cases, attendance.
When businesses begin to succeed and grow, accounting requirements often become too much to handle for one person.
2. Dedicate Internal Staff
If you wish to keep payroll options internal, but don’t have the time or knowledge yourself, you may choose to assign one or more staff members to the job.
Hiring someone can be very helpful for small business, especially those that have a good amount of employees. This would likely need to be a full-time position, or multiple part-time positions handling the duties.
This is a great option if you will consistently have a predictable number of employees. Anyone you hire needs to have solid bookkeeping skills.
3. Get High-Quality Software to Assist
If you choose either of the above options, your staff will still likely need software to make their lives easier. Many products can provide your business with a streamlined method for storing or reporting out on payroll information.
Often times, a lot of software will allow you to automate certain processes. This allows you to save time and stay organized. One great option for small business would be a pay stub generator.
Before jumping in and purchasing software, you should take some time to decide what would be best. Are you interested in a customized software specific to your business needs? This would make things very easy but could be very expensive.
Are you traveling often? You may want to also look into software that is mobile friendly.
4. Programs to Do Everything
The above shows how software can help an internal staff with only certain steps of the payroll process. Alternatively, there are also programs that will handle all steps of the process from A to Z.
These types of software can collect employee hours, run taxes, and create paystubs all with a few clicks of a button.
5. Look to Outsource your Payroll Options
One cost-effective option is completing outsourcing payroll duties to an external firm or company. This will take the complex payroll process completely out of a small business owner’s hands. This lets owners focus on other key tasks.
Benefits of outsourcing payroll include improved accuracy, cost savings, and enhanced reporting. All of this without spending money on training new employees.
Now you have five payroll options to choose from.
Which one do you think will work best for your business. Share with us in the comments!