Feel like you’re spending way longer than necessary on payroll? Payroll is a crucial task for small business owners. However, managing your payroll can be tedious and time-consuming. Read on to learn why you should switch to payroll online with QuickBooks.
1. Increase Efficiency
Working through your payroll can take a lot longer when it’s not your strong suit. Even if you have a dedicated employee with experience in payroll, manually entering payroll takes longer than using an online payroll system. You can process the job much faster, which leaves you, or your assigned staff member, with more time to tackle other items on the to-do list. The system handles the calculations automatically, so you don’t have to key in the information by line and then check your work. After the initial payroll setup with each employee’s information, the payroll system requires very little input. You enter the hours for that pay period plus any special circumstances, such as bonuses, overtime, or time off, and the system handles the rest. It’s much faster than manually entering each piece of information every pay period.
2. Save Money
Greater efficiency in payroll leads to another benefit: saving money. Your time costs you money. When you spend your time handling payroll, it keeps you from other duties that can help generate more revenue for your business. When you have a dedicated team member doing the job, you’re paying a salary for the corresponding work hours. Getting payroll done faster means you’re spending less salary money on the task.
Payroll software can also save money over using outside sources. Payroll systems usually charge a monthly fee for access to the program. This fee generally falls below what you would pay a full-time employee or a freelance payroll specialist to handle the job. While outsourcing payroll duties makes sense in some cases, you may find the job easier and more cost-effective when you use online services.
3. Improve Accuracy
Your employees expect to receive their paycheques like clockwork on payday. They also expect the amount to be accurate every time. Coming up short can put some of your employees in a financial bind and can lead to some negative feelings. Plus, they have the task of coming to you to get the error fixed. You can improve the accuracy of your payroll data by using software designed to handle the numbers. Payroll software online handles calculations for you automatically, which reduces the risk of human error. High-quality programs keep up to date with changes in taxation and regulations to make sure you’re always using the correct calculations. Improved accuracy keeps your employees happy, and it keeps you from losing money on calculation errors that are higher than they should be.
4. Increase Security
Think of all the personal data that comes with processing payroll. It’s not just the salary of each employee. It’s the birth dates, bank account information, addresses, and other personally identifying data. Your employees expect you to keep that information protected. If you use physical payroll methods, you have a literal paper trail that’s susceptible to breaches. Saving your records on your computer can also expose the data to security breaches.
Online payroll services like QuickBooks Online use the latest security measures to keep your personal information safe. By handling information electronically, you reduce the chance of stolen information and unauthorized access. Encryption prevents hacking from occurring, and automatic information backups protect the data from loss due to machine failure.
5. Reduce Fraud and Tax Issues
Using payroll software online can reduce the chances of fraud within your business if a person manually completes the task. The system handles the calculations, making it more difficult to manipulate the numbers. The program also creates an audit trail that lets you easily track activity or prove the efficient management of payroll. Even if you don’t suspect an employee of fraud, putting this safeguard in place gives you peace of mind going forward.
That audit trail also comes in handy at tax time. The system automatically calculates tax amounts for you to make withholding and paying taxes easier. Online software also updates automatically as tax laws or calculations change to help you avoid issues with paying your payroll taxes correctly. It also ensures you are complying with provincial and federal income tax laws.
6. Improve Ease of Use
When you use payroll software online, you eliminate the guesswork that comes with handling payroll manually. The software program guides you through the process and handles the calculations for you, so you don’t have to go through complicated steps. Many online payroll programs create an intuitive, user-friendly interface that makes the process easier to handle, even if you don’t have a strong background in payroll or accounting. It makes the learning process much faster and enables you to handle the task without specialized training instead of hiring a payroll specialist or outsourcing the work.
7. Increase Employee Convenience
When you use online payroll software, you can often offer more options for employees to interact with their payroll information. For example, employees usually have access to online pay stubs immediately after payment. This means you don’t have to print paper stubs, and they don’t have to keep track of them if they need to look back at previous paycheques. Many online payroll systems also allow for direct deposit. QuickBooks offers free direct deposit when you add the payroll feature. Employees receive their payment immediately without a trip to the bank, and you save on time and resources by eliminating the need to print out physical cheques.
8. Customize Your Options
One-size-fits-all approaches to payroll rarely work well for all businesses. You have unique needs and situations that can affect your payroll situation. The best online payroll systems let you customize settings to work best for your needs. For example, with the QuickBooks Payroll option, you can set specific rules for different employees or payment types. You can also adjust the pay period to reflect your company’s schedule. Many options allow for customized reminders and reports to help you stay on top of your payroll situation and make it possible to look at pay at a glance.
9. Use Mobile Options
Mobile payroll apps allow you to handle your payroll no matter where you are from the convenience of a mobile device. This lets you check on an after-hours payroll issue on the go. You can also grant access to the employee responsible for handling payroll while still having access to the data yourself.
Many payroll apps and systems also integrate with your accounting software. The data automatically transfers to a program like QuickBooks to keep your full financial picture in check. Having this option eliminates the need to manually transfer and key in that information in your accounting software. This benefit saves time and money to help you run the administrative part of your business more efficiently. 4.3 million customers use QuickBooks. Join them today to help your business thrive for free.