What Every Small Business Owner Needs to Know About Payroll
Guest Post by Chelsea Lamb of Business Pop
Did you know that 99.9% of businesses in the United States fit into the small business category? That equates to nearly 30.2 million businesses. With that many companies operating, there is a lot of information on how to run an effective small business. Unfortunately, many don’t fully understand the impact of a proper payroll system. Payroll is crucial to smooth operations in your business. No matter how few employees or contractors you have, it’s imperative to include a payroll system in your company.
The following guide from Breakthrough Bookkeeping tells you what you need to know about finding and using the right payroll system for your small business.
A Payroll System
Many small businesses, primarily those based online, think about software like a website platform, a social media scheduler, and a customer relationship management (CRM) tool, yet one of the last types of software added is a payroll system. It has many benefits, though, and makes your life as a business owner much more efficient.
For example, managing a team becomes a much easier process with a payroll system like QuickBooks Online. This is especially helpful if you’re not quite ready to hire an outside bookkeeper or internal accountant, and Breakthrough Bookkeeping can guide you through setting it up and troubleshooting any problems.
With COVID, many businesses had to switch their employees to remote work. Even today, some are continuing the virtual worker model or a hybrid of remote/in-person. While there are many project and time management systems, like Teamwork.com, the simpler your systems are with fewer moving pieces, the easier it is to maintain and track. Finding the best payroll software for your business includes a time tracking/employee timesheets feature.
In addition, payroll systems that include real-time reporting offer accurate and timely reporting to keep your business operations always accurate, reliable, and in compliance with any state or federal regulations.
Of course, even the most robust payroll software cannot do everything in your business. While your payroll system is a valuable tool for income tracking, expenses, invoicing, and employee time tracking, other pieces are outside your payroll system. Software integration is key to keeping things connected and accurate. If your different systems aren’t talking to each other, things could get missed like taxes, expenses, or even income. Here are some key areas to watch out for with integrating your payroll software to the other parts of your operations:
- Connecting to your payment processors
- Automated integrations
- Direct deposit
- Human resources system
- Expense tracking
Payroll on the Go
We’ve all heard and probably said, “There’s an app for that!” Since today’s business owners are busier than ever, being able to manage payroll through a mobile app and practicing staff management from your smartphone streamlines the process even further. After all, even brick-and-mortar businesses need access to their data and systems wherever they go and on every device. Although there are many software packages available, Breakthrough Bookkeeping recommends either Patriot or Gusto for your payroll needs.
Now you can see how crucial it is to implement the right payroll system for your business today and as your business grows. Adding a payroll system allows you to manage your team, including updating their hours, integrating with your other business operations, and keeping things streamlined and accessible through mobile apps. No matter how big or small your team is, with payroll software implemented, you’ll have the information you need to keep your business running smoothly and meeting the rules and regulations of your area.
Are you a female entrepreneur who needs help with your monthly bookkeeping or professional insight into cleaning up your books? Breakthrough Bookkeeping is here for you! We exist to provide female business owners with the bookkeeping assistance they need so they can focus on the big picture. Reach out to us today!