If you have employees, then making sure you pay them accurately and on time is very important. Unfortunately, the process is not as straightforward as you might think. If you’re the owner of a small or medium-sized business, you might struggle to handle payroll. 

Setting up payroll correctly is integral, as it allows you to make the right payment to your employees and keep detailed records of all payroll activities. However, the process can take a lot of time and energy and end up giving you a headache. Besides, you probably have a lot of other things to take care of. 

When it comes to processing the payroll, you will have to enter your employer identification number, collect employee tax information, select a payroll schedule, calculate gross pay, determine deductions for each employee, and calculate the net pay. If it all seems like too much, here are some of the ways that you can make managing payroll a lot less stressful and more hands-off.

Use an Automated Option

One of the best ways to simplify the payroll process is by using an automated service such as QuickBooks Payroll, Paychex, Gusto, or OnPay. Since paying your staff on time helps you avoid poor performance, low morale, and loss of trust, it’s important you get a good payroll system to handle everything for you. Gone are the days when businesses relied on manual processing. Today, payroll software allows you to handle the following:

• Carry out year-end reporting.
• Reduce the burden for compliance and prepare payroll taxes
• Work out all payroll deductions.
• Fill out tax forms and submit them for each employee.
• Determine holiday pay, deductions, retirement contributions, employee benefits, the hourly rate of each employee, expenses, and bonuses for each period automatically.
• Generate accurate salary payroll slips that include the payroll tax rate and other information about your employees. 

Payroll services allow you to save time. Business owners who have a tight schedule and struggle with making payments, direct deposits, planning, and providing paychecks to hourly workers will find it to be a great option. In fact, it is possible to link your payroll to the timesheet system for recording the time worked by employees. It would transfer all the information automatically to ensure that all calculations are done with minimal effort.

Besides, payroll software stores all your personnel records and assists with future costs. However, there are disadvantages of payroll software programs that you should consider. These include information access, fraud, cyber security, theft, and data security issues.

Get an In-House Bookkeeper

Another option that you can take advantage of for handling your payroll is to hire an in-house bookkeeper. As your business grows, you shouldn’t have to worry about payroll. Instead, you should let someone else take on the work. You need to make sure that you hire someone who has considerable experience in bookkeeping and can easily take over your payroll with minimal guidance.

It is always great to know that there is someone who can manage all your finances for you. In fact, it’s necessary, especially if you don’t have a finance background. As your bookkeeper will come to work every day, you’ll always have someone to manage your payroll. The support provided by your in-house bookkeeper will allow you to focus on running your business.

Moreover, you can even ask them for advice, as they will have an in-depth understanding of the payroll process. However, it can be quite costly to employ an in-house bookkeeper. You would have to pay a salary, employee benefits, and spend money on equipment and an office. Because of this, it might be best to outsource the work to an independent contractor.

Contract with a Bookkeeping Service Provider

Many businesses today rely on independent contractors for managing their accounts instead of recruiting an in-house bookkeeper. It’s a much more efficient option. Although you might think that seeking a bookkeeping service is expensive, it usually costs a lot less than hiring someone full-time.

Your service provider has the experience, technology, infrastructure, training, and manpower to keep your books and your payroll in order and humming right along. You’ll also be able to scale the service as your needs grow, instead of hiring additional people to manage a greater workload. Your bookkeeping service provider will provide a wide range of services, such as payroll management, bookkeeping, legal advice, tax preparation, and much more.

What Can a Payroll Provider Do?

A payroll service provider handles more than just basic payroll calculations. Let’s take a look at some of the support options they provide. 

Payroll Processing

They will calculate hours worked by all employees,  individual salaries and all deductions, so that you can issue a check, and ensure that everyone is paid on time.

Wage Garnishment and Tax Withholding

Another service that you can benefit from when you outsource your bookkeeping to an independent contractor is that they will ensure that garnishments, payroll deductions, and appropriate taxes are accurately withheld and paid from employee wages.

Tax Filing Services

Your payroll provider will file all local, state, and federal taxes for you and even assist with reporting and preparing forms such as 1099-NEC, W-2, and so on.

Compliance Expertise

As your payroll provider will keep up with the latest regulatory requirements, you’ll be able to remain compliant with all government requirements. You won’t need to worry quite as much about keeping up to date with wage and tax laws as they will ensure real-time compliance.

Support

If you require additional support, your payroll provider will be more than happy to help you. You’ll have access to qualified and caring specialists who can answer questions, troubleshoot software, fix errors, and counsel you on certain decisions related to your business’s finances. 

Benefits of Outsourcing Payroll

If filling out forms, performing calculations, worrying about compliance and issuing payments is something you don’t want or don’t feel equipped to handle, you can rely on your payroll service provider to take care of the payroll process for you. Here are some of the benefits of outsourcing your payroll.

1. Saves Time

A great benefit of outsourcing payroll is that it helps increase company efficiency. Rather than having to spend a lot of time processing payroll, the independent contractor will handle all the work for you so that you can focus on your core responsibilities. 

2. Reduces Costs

Since they’ll be helping you avoid additional payroll hours that would have gone to an in-house employee, and the cost of equipment, they’ll help you save a lot of money. When you compare the cost of hiring an in-house bookkeeper and outsourcing payroll, you will quickly realize just how much money you can expect to save. 

3. Minimizes Compliance Risks

Staying compliant is never easy. As local, state, and federal governments continue to introduce new laws and change existing ones, there is a significant compliance risk that you need to prepare for. Often, your best option is to let someone experienced in this area handle it. 

4. Provides Access to Specialized Knowledge

When you outsource your payroll, you get to benefit from a team of professionals who have specialized knowledge of tax codes, bookkeeping matters, and financial planning. You can consult with them to find out how you and your business can sharpen each of these areas. 

5. Ensures Data Protection and Security

In order to protect your company and your customers, you need to understand just how important protecting your data is. Your payroll provider works with the latest security measures, multiple layers of protection, including state-of-the-art encryption, and more. They will remain transparent with you and employ several measures to protect your data. 

6. Eliminates Stress

Paying your employees on time can be quite stressful, especially if you lack the experience in bookkeeping or just don’t have the time. Don’t spin your wheels or give yourself anxiety worrying about accurate payroll, tax compliance, and keeping it all in order. Partner with someone who can do it all for you. 

In Closing

Managing payroll well is one of the most important things a business owner needs to do. It’s also something that many people neglect, procrastinate on, or get disorganized with. You can’t afford to not take payroll seriously. Choose a solution that takes care of all your needs and allows you to focus on leading your company. 

Sound Accounts helps business owners increase productivity and relieve stress by managing payroll and all their bookkeeping needs. Connect with us today to learn more about how we can help you.  

To learn more about managing payroll, see our frequently asked questions below. 

FAQ

Can I pay employees without an official payroll process in place and without using a payroll service or software?

Yes, you can. But it quickly gets disorganized and leaves you wide open to costly errors and conflicts with your employees. It is strongly advised that you create a detailed payroll process and get the tools and help you need to manage it. 

Can I pay cash in hand to employees?

Although employers can pay cash to employees, it is best that you make a direct deposit or issue a check to avoid errors and remain in compliance.

What is the most secure method for an employer to pay employees?

The most secure method for paying employees is a direct deposit to their bank account. This eliminates things like misplaced or lost checks and cuts down on your employees’ time spent waiting for their compensation. 

Cash flow can get tight as companies grow. Although you might be tempted to delay paying your employees, it is important that you focus on managing your payroll. As a business owner, you are responsible for ensuring proper payroll processing. The regulations are quite strict. You have to follow the FLSA (Fair Labor Standards Act) to stay on the right side of the law. Otherwise, you will need to pay some hefty penalties. To help you manage payroll with greater confidence, we offer you these 5 payroll strategies. 

1. Effective Bookkeeping and Payroll Process

One of the best tips that you should consider is establishing an effective bookkeeping and payroll process. It is the only way that you can avoid payroll penalties and keep everything in order. Since having accurate records is necessary for avoiding wage disputes, you have to focus on improving your bookkeeping and payroll process. It is the only way that you can avoid making certain mistakes and to ensure that you cover payroll taxes and wages accurately and on time. Besides, it will help improve your relationship with your employees and help you plan more effectively. Here are some of the best practices that you should consider for an effective bookkeeping and payroll process.

Create a Payroll Schedule: The first thing that you need to do is create a monthly payroll schedule. It will determine when you pay your workers. You can use Excel to create a calendar for bookkeeping and payroll processing, or take advantage of scheduling processes within your bookkeeping and accounting software. It is best that you set the payroll period as either semi-monthly or bi-weekly to avoid any delays.

Study the Tax Requirements: The next thing that you need to do is study the tax requirements. You must know how federal and state tax laws impact your payroll. As the IRS penalizes businesses that are unable to pay their payroll costs on time and fail to follow regulations, you have to gain a better understanding of all relevant laws.

Set Payroll Policies: Once you know more about these regulations, you can proceed by creating payroll policies. If you have a business accountant, they can help you out. Make sure that the policies are simple so that no one is confused.

Conduct Audits Periodically: As there is always a risk of mistakes being made, you need to ensure that audits are conducted periodically. A detailed workflow analysis is recommended for all types of businesses. It will allow you to identify and categorize your business income and expenses to ensure that they have been properly recorded.

Implement Direct Deposits: Instead of offering cash or issuing paper checks to employees, you should consider implementing direct deposits. It will help save time, allow you to go paperless, ensure that workers are paid on time, and prevent the possibility of any mistakes being made.

2. Good Organization and Recordkeeping

The next thing that you need to do is focus on improving organization and recordkeeping. It is the only way that you can avoid mistakes. The more complicated the attendance and expense reimbursement, the harder it will be for you to record everything. Therefore, you have to focus on implementing good record-keeping practices as they will ultimately lead to effective organization. Here are some of the tips you should consider.

Separate Recordkeeping into Categories: A great way to ensure proper records is by separating it into different categories such as reference materials, working files, admin records, and older files. When you separate records into different categories, you will have an easier time locating and managing them.

Appoint Two Employees for Managing Records: For effective organization and recordkeeping, you need to make sure you have two employees to manage records instead of just one. It’s the only way that you can make sure there is always someone available to keep your records organized and navigable. 

Ensure Record Clean-Up: To maintain efficiency, you will have to set aside record clean-up days to ensure that old records that are no longer needed are deleted.

Keep a Detailed Inventory of Records: Document every record properly. Record the location of the record, the time they filed it, and the type of record it is. This goes for all types of records, including credit card statements, loans, financial statements, and so on.

3. Seek Help from a Bookkeeping Service Provider

Since managing payroll on your own is not an easy task, it is important that you get help from an expert. You are likely to encounter complications along the way, especially as your business expands. Since you’ll be focused on the core needs of your business, it will be a tremendous relief to partner with a bookkeeping service provider to handle this side of things so you can focus on leading your team and managing your business. 

It’s common for businesses today to outsource their bookkeeping and accounting needs. Besides, processing payroll tends to be time-consuming and is likely to cause undue stress. If you do not have a dedicated department for bookkeeping, you should let a payroll service provider take care of everything. It will help keep you compliant with all the rules and regulations while also helping boost productivity. Moreover, outsourcing allows you to sit back and relax. 

4. Use Great Accounting Software

If there is one thing that you need to consider to better manage your small business payroll, it’s getting excellent accounting software. Performing payroll manually can lead to costly errors and poor relations with employees. The same goes for using an outdated system. It is crucial that you use a modern payroll system that is packed with the latest features for ensuring tax compliance, direct payments, attendance, and more.

With the right payroll software, you will be able to cut down on the amount of time it takes to complete the payroll process. Recent software provides online access to ensure that employees hae a great payroll experience. They can keep track of their hourly wage, sick leave, social security, retirement plan contributions, taxable income, vacation days, hours worked and even generate digital payslips. Here are some tips you should consider when searching for the best accounting programs.

Your Needs: Take note of your requirements and how your company operates to ensure that you are able to find the right payroll software. You also have to consider your industry and niche as there are certain applications that are dedicated to helping businesses in certain sectors.

Cloud Applications: Since the cloud offers a host of benefits such as access to records from any corner of the globe, you should consider looking for software that has cloud computing capabilities. This will allow you to migrate to the cloud and gain a lot of freedom in your workflow.

Cost: Next, you have to think about your budget. For the most part, there is an application to fit just about every budget. However, be willing to spend a bit more for greater flexibility and features. 

Ask Your Payroll Service Provider for Help: Your payroll service provider should be able to offer expert advice to help point you in the right direction. It’s important that you leverage their experience.

5. Clear Communication with Employees

Communication is integral for managing your payroll. Here are some of the things that you must communicate with your employees to avoid any confusion.

• How wages are calculated
• How payroll mistakes are handled
• Paid time off, sick leave, and vacation
• Employee attendance requirements
• How benefits and promotions are calculated
• An overview of the payroll process and how it works
• Employee classification (contractors, part-time, and full-time).

The above information should be readily available so that your workforce can stay in the know about what to expect from the payroll process.

Conclusion

Managing payroll can sometimes be overwhelming. But it doesn’t have to be. Apply these trusted practices and partner with a great bookkeeper and you’ll set yourself up for continued success, both now and as your business grows. 

Sound Accounts is your complete bookkeeping and payroll partner. We help businesses refine their workflow and find greater productivity at every stage of growth. Contact us today to learn more.

To learn more about the payroll process, check out our frequently asked questions below. 

FAQ

What makes up the core of effective payroll management?

The following tips will help you ensure effective payroll processing.

• Set your budget
• Think things through
• Consider scheduling
• Learn more about the payroll laws
• Develop a payroll policy
• Properly classify all your employees
• Find a payroll service provider
• Opt for the cloud
• Double-check everything
• Plan the employee benefits
• Document the payroll process
• Create a bank account for processing payroll
• Audit the processes
• Maintain good records

How do you reduce payroll errors?

Here are some things that you should consider to help you cut down on payroll errors.

• Learn more about the latest rules and regulations
• Never miss deposit deadlines
• Correctly process wage garnishments
• Never rely on the payroll software alone
• Classify your employees correctly and review the classification from time to time
• Report the fringe benefits you provide
• Partner with a bookkeeping and payroll service provider

Why is managing payroll effectively so important?

A clean, clear payroll process helps you make the most of your resources and team members, while keeping them happy, managing your money for growth and staying compliant with government regulations. 

One of the best decisions that you can make is to hire a bookkeeping service provider for your business. Since managing employee payroll is not an easy task, it is sometimes wise to leave this work to a full-service payroll company. 

You might think that you can pay your hourly employees on time using accounting software like QuickBooks Payroll and take care of all payroll taxes on your own. However, if you want to remain focused on the core needs of your business, payroll responsibilities can be a distraction and a drain on your energy. 

Even if you have defined your payroll plans and possess a bit of accounting knowledge, there is a reason why companies rely on contractors for tax filings, keeping the books, and other payroll services. Business owners want an experienced partner to look over their finances and to not be distracted by worrying about it themselves. Here’s everything you need to know about bookkeeping service providers. 

What Are Payroll Services?

A payroll service handles all your payroll accounting. This means that they would manage the recording and management of employee compensation, direct deposits to their bank accounts, and assist with generating financial reports for effective tracking of expenses. Moreover, the service provider would also manage all the withholdings such as federal and state taxes, Medicare taxes, contributions, social security, wage garnishment, and health insurance premiums.

Since payroll is an integral element of every business, you need the help of an expert to better manage your company. Through outsourcing, you get to save yourself the trouble and focus on improving your business.

Benefits of Contracting a Bookkeeping Service for Payroll

There are many perks to partnering with an experienced bookkeeping service provider. Let’s look at a handful of them.

1. Saves Time

A major benefit of outsourcing your bookkeeping tasks is that it helps save time. You might think that bookkeeping is a task that simply needs to be performed twice a month. However, it could not be further from the truth. It requires attention to detail and full commitment. Completing bookkeeping takes a great deal of time on an ongoing basis. Otherwise, you are likely to end up making costly mistakes.

As your team continues to expand, it will only take more time to perform bookkeeping responsibilities yourself. Checks and balances must be ensured throughout the month to eliminate the possibility of any errors. This is why it makes sense to opt for a payroll service provider. It will save you the trouble and help you spare a ton of time so that you can put it to good use growing your company.

2. Cost-Effective

A common misconception that many businesses believe in is that outsourcing is costly. However, it is actually more cost-effective to hire a bookkeeping service provider instead of employing an in-house team to handle the accounting systems and look after all programs and devices. If you decide to employ an in-house team, you would have to train them, outfit an office, and make sure that your team keeps up with the latest technology and trends. Besides, you would have to put in a lot of time to get the department up and running.

When you combine all the costs that will need to be incurred to establish a bookkeeping department, you will come to realize that hiring a payroll company is a much more affordable option. All you will need to do is pay the service provider a flat fee for an amazing service. Thus, you can expect to save money.

3. Stay Organized

A great benefit of contracting a bookkeeping service provider is that it helps organize and simplify everything for you. The contractor will help you put your records, finances, and other documents in order. They’ve got the technology, infrastructure, and most importantly, the experience to manage your books and payroll perfectly. No matter which accounting tasks need to be taken care of, they can handle them. 

4. Ensures Accountability and Promotes Discipline

When you hook a bookkeeping service provider, you will be delighted to know that they will not rest until they exceed your expectations. They’ll ensure error-free payroll management, helping you maintain accountability and discipline in this area of your business. And with most of the day-to-day payroll and bookkeeping work off your plate, you’ll be able to focus on your customer experience, product quality, and employee morale and success. 

5. Accuracy

In addition to the above, you will also benefit from accuracy. When running a business, it is crucial that you seek to remain error free, in payroll management, as well as with taxes, in-house documentation and when compiling customer data.. This is another place where a bookkeeping service provider truly shines. They possess the skills, tools, and experience needed to maintain accuracy, even in a whirlwind of incoming information and changing data. 

Accuracy keeps you organized, helps you avoid costly or timely errors, makes sure you’re abiding by all rules, and increases the level of trust that the public has in you and your brand. 

6. It Helps Keep Your Employees Happy

If you take on payroll management on your own, you are likely to make mistakes such as missing or duplicating data. This would result in payroll discrepancies which can affect staff morale. You risk underpaying or overpaying workers, which is always damaging to you if you need to backtrack and fix the situation. Employees are likely to distrust you in the future following mistakes like this. 

Your payroll service provider will go out of their way to make sure that your employees are paid exactly what they are owed with all deductions and withholdings precisely calculated. Again, opting for an expert ensures your brand credibility and your own reputation are maintained.

7. Keeps You In Good Standing With the IRS

Compliance with the IRS is essential for running a successful business. Your service provider will be a virtual payroll guru, so they will make certain you never miss deadlines and are able to check off every requirement the IRS has.. 

It’s too easy, especially when you’re just starting your business or during a season when things are getting uniquely busy, to lose track of certain imperative guidelines and rules, and rush through things just to get them done. But this will only slow you down when your errors come back to bite you later on…something you simply can’t afford. 

8. Lowers Stress

Every business owner knows just how stressful it can be to manage bookkeeping. Between everything you have to manage and the time and focus it takes to see your vision through, having to worry about overseeing every aspect of your bookkeeping process can add a significant level of stress to your daily life. 

Bookkeeping service providers will help free up your time and energy so that you can relax and focus on running the business. More than this, though, when you’re running a business, it tends to spill over into your personal and family life. Putting payroll responsibilities on that pile means more time away from loved ones, less time for you to relax and recharge, and less freedom to enjoy the success you;re already experiencing. 

9. Improve Cash Flow

If you are having cash flow issues or want to improve your revenue, you can turn to a bookkeeping service provider to help you out. Bookkeeping professionals will look into every aspect of your budget to spot trouble spots or missed opportunities. This includes a thorough analysis of payroll. They can assess your current situation and future needs and make recommendations based upon these observations that can help you keep more cash in-house.

You may pay for too much overtime when another option exists. You also might be over-hiring and investing a lot into training when cross-training other employees or promoting from within could be a better solution. 

10. Streamline Your Payroll Process

Bookkeeping service providers are great at choosing just the right tools and policies to help streamline and refine your company’s payroll process. Whether it be adopting direct deposit, shifting to a more reasonable pay schedule, moving from physical time cards to an electronic system, and helping you create a cleaner, easily accessible, and instantly updated online employee schedule, their suggestions help make your team members an even greater and more valued asset in your organization. 

Conclusion

You might think that by handling the payroll on your own, you’ll be staying in control and saving money. Consequently, oftentimes, the very opposite is the truth. Attempting to juggle everything from planning and development, to customer experience, product design and marketing, can leave you exhausted and cause you to miss out on the power gained from strategic partnerships.  Adding payroll responsibilities to this already growing pile will dilute your focus and energy that much more. Professional partners help us build the kind of business we always wanted. 

Sound accounts helps business owners find greater success by expertly managing their books and their payroll process. This means more productivity and less dress for you. Contact us today to learn more about partnering with us. 

To learn more about the benefits of bookkeeping service providers, check out our frequently asked questions below. 

FAQ

How does a bookkeeping service provider benefit my business?

There are a number of benefits offered by a bookkeeping service. By hiring their service for your business, you can expect to reduce stress, cut down costs, make compliance with the IRS, improve your cash flow, maintain accurate records, and keep employees happy.

What is the Importance of bookkeeping and accounting?

Bookkeeping and accounting are considered one of the prime languages of business. If you want to gain a better understanding of your company, you need to get them right. Detailed financial management is the cornerstone of long-term success. It will help you gain a deeper understanding of what makes your business tick and how to make it function at a much higher level. Partnering with an expert in this area can help you get the most benefit out of your bookkeeping and budget. 

What are the responsibilities of a bookkeeper?

A bookkeeper has various responsibilities and areas of expertise. Here are some of the most common below.

Sends invoices to clients

Prepares financial statements

Keeps the company prepared for tax time

Day-to-day management of accounts and expenses

Maintains updated and accurate records

Ensures your business follows all applicable laws.

Handle accounts receivable and accounts payable.

Processes and manages all payroll needs

For business owners, one of the biggest expenses that you need to keep a handle on is your employee wages. It can help ensure a healthy cash flow and allow you to reduce your accounts payable balance. Business owners have to learn how to keep their payroll under control to cash in on every opportunity that comes their way. 

The fact is that the wage paid to hourly workers has been on the rise across the United States. This is why you have to make sure that you can cut down on costs to keep your business strong. Otherwise, you may have to use your credit card to pay employees. Although you can reduce wages, lay off employees, and reduce employee benefits policies, there is no need for you to take such drastic and damaging actions unless absolutely necessary. 

If you take such strict actions, employee morale will plummet which will definitely affect the quality of service provided to your customers. To gain better control of your business payroll, consider the following tips. 

1. Determine Your Labor Burden Rate

The first thing that you need to do to keep payroll under control is to determine your labor burden rate. Find out what you’re paying to every employee to cut down on labor expenses. Determine what you provide on top of the hourly rate or basic salary. The total value is considered the employee burden rate. 

In order to calculate the employee burden rate of each employee, you must add their annual hourly wages or salary, extra compensations like bonuses and overtime, mandatory insurance, payroll taxes, and other employee benefits such as health insurance and 401(k). When you have an idea about how much you are paying every worker, you’ll be able to determine where you’re overspending.

 2. Optimize Employee Scheduling

Another tip that businesses should consider is optimizing employee scheduling. When there is a clear schedule, everyone knows exactly what to expect.  This decreases schedule conflicts and helps prevent the need to pay overtime. With a proper understanding of employee costs, you can focus on dialing in your schedule to maximize your productivity within a reasonable number of employment hours used. It will also provide you with the added advantage of a happier workforce as they never have to deal with late, unclear, or shifting schedules. Overtime is necessary sometimes, during emergencies, illnesses, special events or sudden expansion opportunities. But when you plan ahead, you can minimize the times when overtime becomes a necessity. 

3. Employee Retention

Focusing on employee satisfaction and retention increases productivity, morale, and longevity. If you key in on hiring well from the start, you’ll avoid problems later with unsatisfied or disgruntled employees leaving. If you’re losing talent regularly, you’re spending a lot of money on training new people. 

Make sure you’ve got the right people in the right jobs to maximize on their talents and skill sets. Look for opportunities to promote from within to keep upward momentum going for talented individuals who want to help your organization grow and succeed. Pay close attention to the relationships between your staff and their managers, something that has a great impact on the desire of employees to stick with you. Work on improving communication between employees and supervisors and between departments. 

4. Look at Communication and Redundancy 

Looking closely at your organization’s effectiveness when it comes to internal communication and possible departmental redundancies is a fantastic way to refine your processes and save payroll. How well are department heads, project leaders and others communicating? Is vital information clearly and efficiently shared? Or are there gaps in their exchanges leading to missed opportunities and repeat meetings? 

Is your marketing department handling jobs better suited to sales or vice versa? Is R&D handling too much admin? Are two or more people repeating work…doing essentially the same job with only minor variances? It’s time to really dive deep and look at how well your people connect, share information, divide work, and execute on initiatives. 

5. Develop Greater Productivity

Do you have the right technology in place to equip your people for success? Outdated programs and hardware can lead to slower production, late orders, lost communications, and confused team members. All these lead to a greater burden on payroll from the increased demand on staff to fix these problems. 

Also, look at new ways to accomplish old jobs. Are there new training programs, new philosophies, new ways of organizing or performing some of your primary functions that would kick them up a notch? Research what other companies are doing that seem to be relieving their stress, lowering their payroll, and upping their output. 

Below, you’ll find a few more tips on increasing productivity.

• Ensure Employee Retention: To boost productivity, you have to attract and keep the right people. It should be at the heart of your payroll strategy. 

• Cross-Train Employees: Another great way to increase productivity is by cross-training employees. You need to teach each employee different skills so that they can take on more work which will ensure you don’t need to hire more people or ask someone to work overtime. 

• Automate Tasks: To improve productivity, you can sometimes turn to automation. Review different procedures and find out if you can automate them. It will allow you to cut down on labor costs. You might not even need as many employees in a certain department. 

• Get Employees to Work Overtime Instead of Hiring New Employees: As a last option, you might need to get your workers to work more hours to cut down costs. The reason behind this is that hiring more employees would only cost more money as you would have to pay for employee benefits for them as well. In such a situation, overtime would prove to be a more affordable option.

6. Consider Outsourcing Some Things

Another way to keep payroll under control is to find certain tasks that might benefit from outsourcing, specific administrative, communications, media, marketing, or other jobs that outside contractors can perform part-time. With the right contracts and oversight, this can cut down on your payroll, benefits burden and increase productivity in the process. 

7. Become Agile

Lastly, you should consider becoming agile to conquer employee cost challenges. The agile philosophy requires you to rethink everything and focus on finding a better way to do things while ensuring that you remain flexible. This mindset helps you break down large goals into accessible steps. This can improve your workflow and cut down on wasted hours. 

Conclusion

Controlling employee costs is often one of the most difficult things to manage as a business owner. It can affect your employees’ level of satisfaction, your quality control, and your staff retention.  There is a lot that you need to consider when attempting to get it just right. You want to make changes that give you the most productivity for the labor hours used while maximizing on employee talent and improving team member satisfaction. You might want to seek the help of an expert. A payroll and bookkeeping service provider will be able to provide the best advice so that you can keep costs under control.

Sound Accounts helps businesses make sense of payroll, maximize on resources and spot opportunities for growth. Contact us today to learn more about partnering with us. 

To learn more about keeping payroll under control, see our frequently asked questions below. 

FAQ

How do I save money on payroll?

There are lots of ways. Organize your employee schedule more efficiently, study your departments to find redundancies or inefficient communication, update technology to give your employees an edge, rethink certain perks, consider outsourcing some tasks, and focus on hiring great talent and keeping them happy so you can avoid the cost of unnecessary hiring and training. 

How do I keep the payroll process from becoming overwhelming for me?

One of the first things you can do is get a great payroll service. Services like Paychex, QuickBooks Payroll, Gusto and others, offer countless options, superb organization, automated payouts and updates, and a range of other features to streamline the process and put your mind at ease. 

Next, consider partnering with a great bookkeeping service provider to look over your payroll and finances. They can provide you a higher level of management that frees you up to focus more on leading your team and capitalizing on your people’s talent. 

Is controlling payroll always about reducing hours or laying people off?

Definitely not! In fact, if you can avoid this, you definitely want to try. Choose other solutions first like focusing on hiring the right people, refining production practices, streamlining communication between departments, getting better trainers to help reduce training time, becoming more agile in your approach and uncovering places where certain tasks or meetings are being repeated.