Accuchex Blog

3 Tips To Manage Payroll More Cost-Effectively

Posted by Tristan Ruhland on Jun 2, 2015 9:30:00 AM

3-considerations-payroll-softwareWhether you work for a new business, manage payroll at an established but smaller business, or work in a large company with a number of departments, how well you manage payroll matters.

The typical payroll process can seem complex, especially for new or small businesses with limited staff. However, with a proper systems and tools in place, you can manage payroll efficiently, accurately, and cost-effectively. In addition, effectively managing payroll will help you stay in full compliance.

Manage Payroll With Less Stress and Cost-Effectively

If you are a small business, say with less than 10 employees, odds are you are the owner and are either doing your payroll yourself, or you have a partner taking care of that task. Larger companies typically have a an HR department and this process will fall on either the HR manager, or perhaps even a payroll manager. Regardless of the size or structure of your payroll, efficiency, accuracy and compliance are key objectives to be attained.

3 Tips for better ways to manage payroll

There are a number of tactics and approaches that can be taken with managing payroll, but here are three major resources than can help to make the job easier and more efficient:

1. Free Tools

Well-designed online payroll calculators, for example, can be used as a significant addition to your arsenal of payroll process tools. Calculators should not be seen as a replacement for payroll software, however, but they can provide a significant time savings.

The free online payroll calculators on the Accuchex website, for example, can enable you to compute payroll for hourly or salaried employees. Use these handy tools to do a quick calculation. Keep in mind that they are not designed to be a payroll service replacement.

To use these calculators just enter your staff member’s pay info, and the tool will crunch the numbers as well as show you the amount to pay and how to deduct for taxes. Your computations are accurate with the most up-to-date tax tables, so you don’t have to think about it. Also, the payroll calculator can be used to include overtime, bonuses, or payments.

2. Payroll Management Software

One of the greatest benefits for payroll management professionals is the vast array of powerful and comprehensive software tools available to them. Whether cloud-based, or installed software, having the latest and best HR tools can make your payroll and HR work far more efficient and manageable.

Cost varies significantly, but the investment of a wise choice of tools will pay huge dividends in time savings and efficiency for your HR department.

With the wide variety of tasks and accountabilities HR professionals are responsible for managing, having the best tools at their disposal becomes an ever-present concern. Programs evolve, technology changes, and what was purchased and installed three years ago, for example, may not be sufficient for today.

Companies also grow and evolve, and the needs and requirements of those companies change, as well. So one of the tasks of a proficient HR manager is to keep abreast of the latest trends and offerings in technology. 

3. Outsourcing Payroll Management 

There are a number of good reasons to consider outsourcing your payroll functions. While you may want to retain some of your general accounting operations such as accounts payable and managing your receivables, payroll is always a great candidate for outsourcing. 

Cost Savings - While you should always conduct and in-depth cost analysis, most every business - large and small - can realize significant savings in real dollars by outsourcing this function. In addition to the overhead costs reduction, your company can save on software costs, training and support costs, as well as compliance related expenditures. All this by simply outsourcing payroll accounting to a reliable, professional outside firm.

Time Savings - This can be seen as another facet of cost savings. Every business owner and every manager knows that the old maxim, "Time is money" is most definitely true. According to one survey, the average time spent processing payroll for approximately 50 people was about 18% each month. That's equivalent to having one full-time person process payroll for 250 employees. This doesn’t include processing changes in payroll, administrating benefits, or any other tasks associated with payroll accounting. 

Management Savings - That may seem like an odd way of putting it, but saving your management team the tedious work of ongoing payroll functions can improve their overall productivity. Outsourcing payroll essentially adds a substantial number of hours for HR staff to engage in other tasks with more long term benefits to the company. Removing the burden of payroll processing and reporting functions also helps to ensure greater accuracy, security and compliance.

Outsourcing any function in your business should be a strategic and operational decision, one that is based on more than simply hoping to save money. And while saving money is indeed a major incentive, there are other indicators to consider when contemplating handing your payroll processing to an outside firm:

  • You are adding employees
  • Your payroll process exceeds your software's capabilities
  • You are adding payroll staff
  • Your employees want to have direct deposit options
  • Your staff is struggling to maintain compliance and accuracy

Take time to plan for a more cost-effective payroll process

As a business owner or payroll manager you have a number of options for your payroll functions. Software that can be installed in-house, or cloud-based programs offer a good alternative. But if you really want to take full advantage of the benefits available to you, outsourcing to a provider like Accuchex can still be the best decision.

Reliability, full-service options, and reputation are the hallmarks of a quality payroll management service provider. If you are currently looking to invest in outsourcing you get your Free Download: Payroll Outsourcing Guide to help you make an informed decision or call Accuchex Payroll Management Services at 877-422-2824.

 

Free Download: Payroll Outsourcing Guide

Topics: payroll management, managed payroll services, payroll process

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