Cash flow is the lifeblood of small businesses, and payroll has a tremendous impact on maintaining positive cash flow. Yet, payroll is something business owners often struggle to navigate. In fact, we recently found that 32 percent of small businesses have paid their employees late due to cash flow problems, and 68 percent of small- and medium-size businesses, at one point, have had to move money around in order to make payroll.
This can put small businesses in a catch-22. It’s vital for them to hold onto their cash to cover the costs of overhead expenses and supplies. However, it’s also imperative that their employees get paid on time, or they risk alienating or losing valuable staff. After listening to businesses that struggle with this issue, we developed new enhancements to QuickBooks® Payroll’s One-Day Direct Deposit capability, allowing businesses to pay their teams faster than any other comparable payroll service.*
What’s new with One-Day Direct Deposit?
One-Day Direct Deposit allows small businesses to pay full time, part time, and contract employees faster and keep money in their accounts longer, helping cash flow. QuickBooks Online Payroll just unveiled a variety of improvements, including:
- Hang on to cash longer. New changes to One-Day Direct Deposit allow small businesses to pay employees faster and keep money in their accounts for an additional day, preventing non-sufficient funds’ situations. In fact, QuickBooks will now debit the small business on the day employees are paid and not several days before, leaving the money in their accounts longer and improving cash flow.
- More time to manage payroll. QuickBooks users will now have more time to add additional employees to a pay run or fix a mistake. In the past, running payroll early meant the transaction was sent to the bank sooner, after which the direct deposit could not be changed. Now, QuickBooks will hold the transaction until 5 p.m., PT, the day before payday, aligning with the deadline to submit payroll.
- A consistent payroll experience:. The QuickBooks user experience will now be consistent every time users run payroll, no matter when they do so. It’s so easy, small businesses won’t even have to think about when to run payroll anymore because they know the money won’t come out of their account until payday!
These improvements will make life easier for business owners, alleviating much of the frustration and stress surrounding payroll. In addition, by ensuring that workers are paid on time, businesses will see higher employee retention rates, as 18 percent of employees who work for small businesses say they would quit after a single late paycheck.
One-Day Direct Deposit’s new capabilities are now live for QuickBooks Online Payroll across bundled and standalone offerings. There is no change to the current experience for Intuit Online Payroll and Intuit Full Service Payroll customers.
Get more information on One-Day Direct Deposit and QuickBooks Payroll.
*Claim based on reported payroll times for monthly subscription products offered by comparable U.S. online payroll providers.