There is a saying “if your business isn’t growing it’s going backwards“! Therefore to stay in business, it must grow!
How you plan to scale your business can be incredibly exciting as there are many avenues to do so, including using more technology.
In this article, we focus on the function that can help scale a small business by providing greater efficiency without hiring more staff. Have you guessed it? It’s the payroll system. While it may not have been your first choice, you’re about to find out that it’s a silent cost-effective workhorse for your business.
Not only will implementing an online payroll system save time and money, but it will also take the guesswork out of employee headcounts, vacation time, and wages. Additionally, it makes the daunting task of filing taxes far more manageable.
From small businesses looking to expand to big businesses looking to think even bigger, an employee payroll system is essential and can help make the period of transition seamless.
Why A Payroll System?
An employee payroll system processes and tracks everything about employee wages, hours, and employment taxes in its most basic form. The system records all of this information and is available for reference when needed.
When you attempt to scale your business, you may find that keeping track of wages and working hours becomes more difficult to manage manually, especially when other aspects begin to require additional attention.
Thankfully, an automated system can handle things for you to focus on other areas that require hands-on attention.
Time and Efficiency
One of the biggest benefits of an automated payroll system is time management. During periods of growth, convenience and efficiency are crucial. Instead of manually adjusting for employee vacations or overtime, an automated system does that work for the client instead of spending hours at every pay period. With the system comes the ability to handle a high volume of payroll information in a fast and more affordable manner.
Additionally, an automated system means that the company no longer needs to rely on an HR team or other employees to gather and process this information, resulting in a less costly process overall. Because scaling is all about efficiency, having more time to focus on other business growth aspects can be highly beneficial to a company’s bottom line.
Human error is a cause for concern in any company, particularly when dealing with money. For example, according to some studies, companies lose, on average, about 5% of their yearly revenue to payroll inefficiencies. Plus this risk of error may increase exponentially when a business begins to grow. Using a reputable employee payroll system closes the gap and saves you money by avoiding the mistakes otherwise made in a manual process.
Employer payroll compliance includes managing employee classification, benefits and tax management. When scaling your company, one of the biggest overall benefits of a payroll system is how easily and concisely it handles tax information. For example, an employee payroll system takes the guesswork out of processing tax information, automatically adjusts employee pay based on withholding status, and generates all employee tax forms at the end of the year.
Instead of hiring another person to handle your tax information, your business will get the job done in-house with the online payroll system.
It will also calculate the amount you owe in payroll taxes, and process deductions, and it can automate your payments to tax establishments. Again, this reduces costs as you grow.
Overall, many software systems can help scale your business, so it keeps growing.
Employee Payroll System: A Worthy Investment
Investing in an employee payroll solution is a great starting point for businesses irrespective of their size. Getting the time and resource efficiency plus reducing human errors where it matters, i.e. your bottom line just makes sense. Also see this article on how to calculate employee payroll tax.