Payroll is by far the biggest expense for most businesses, encompassing nearly 70% of overhead costs. If you’re going to spend that much of your revenue on something, you want it to run smoothly.
Managing payroll for small businesses is no easy task. Not only is it time-consuming but it’s also confusing for anyone without an accounting background.
The good news is, it doesn’t need to be.
Keep reading for 5 tips that will simplify and streamline your payroll process once and for all!
1. Obey the Law
The last thing you want to do as a new business owner is to break the law.
Each state has its own labor laws that ensure accurate and timely payment for employees. Failure to comply could result in a lawsuit and hefty fines.
Hiring an experienced payroll company guarantees you remain compliant and on the right side of the law.
Larger companies with dozens of employees can benefit from our CFO plus tax package which includes services like budgeting, a 12-month financial forecast, payroll support, and tax preparation.
2. Choose a Schedule that Works
There’s no one-size-fits-all approach to processing payroll.
Friday is the most common payday for most small businesses — but it doesn’t have to be yours.
You can also choose to pay employees weekly, bi-weekly, or even monthly. The smaller your staff, the more flexible this schedule can be.
Find a payment schedule that works for you and accommodates your employees’ needs.
3. Manage Your Taxes Properly
There are two sets of taxes that all business owners must contend with — business and payroll.
As an employer, you’re required to complete your year-end payroll before January 31st. This includes filing W-2s for all employees, quarterly amounts for state and federal payroll taxes, and a form for any contractor you paid more than $600.
Businesses are required to file these forms in addition to filing their regular business taxes.
Our tax resolution services can help you manage each of these steps along the way.
For those business owners looking to combine payroll management and tax filing, our accounting plus tax package provides everything you need.
4. Use a Convenient App or Time-Tracking Software
The days of punching a physical clock are gone. Now, there’s an app to help with just about everything — even managing payroll!
An automated, streamlined workflow is the new norm in the business world. It’s never been easier, safer, or more convenient to share files and information.
At Sterling, we use a customized online App Ecosystem that allows our team of in-house professionals to reconcile your payroll each month and troubleshoot any errors.
Most time-tracking software also monitors employee attendance and productivity to help you manage your business from anywhere at any time.
5. Maintain Accuracy
When it comes to managing payroll, accuracy is key. There’s no gray area when it comes to crunching numbers and accurately paying employees.
Invest in a quality software program with increased fraud protection and security. This reduces the risk of costly errors and gives both you and your workers peace of mind.
Hire a team of professionals that will check all data entries for accuracy.
Sterling Makes Managing Payroll Easy
Being a business owner comes with endless hours of work, stress, and obligations. But it’s also an extremely rewarding and lucrative experience.
You have enough on your plate without worrying about managing payroll. Leave this to us so that you can focus on more important things, like building a successful business.
The reliable team at Sterling Tax & Accounting has years of experience working with small businesses just like yours.
We offer a wide range of financial management services to take the guesswork out of bookkeeping, accounting, and payroll management.
Learn how Sterling Tax & Accounting can add value to your business!
Your virtual accounting and technology experts providing back office, compliance & strategic solutions for busy professionals.