Are you currently managing your online business payroll?
Payroll is a big pain for many online and small business owners. In fact, only about 40 percent of small business owners say they’re highly educated on accounting and finance.
How to Manage Online Business Payroll
You can’t afford to make payroll mistakes while growing your online business. But how do you start getting organized and making the online business payroll process easier?
Here are five ways to get a handle on things and save yourself time and money:
1. Create Paystubs for Every Pay Period
Although they may not be required by law, paystubs are crucial for keeping track of employee’s hours worked and wages earned. Paystubs also benefit employees when it comes time for them to prove they’re employed or file taxes.
If you don’t use a payroll system that generates them automatically, it’s easy to create a paystub online.
2. Classify Your Employees
If your business is growing enough to bring on multiple employees, it’s time you start keeping them organized. Here are a few things you need to settle before you bring on and start paying employees:
Are your employees going to be hourly or salaried?
How are they classified? This could include part-time, full-time, freelancers or interns.
Are you offering any bonuses, raises or other benefits?
Creating a process to handle these small details will make your life easier once it’s time to do monthly payroll.
3. Keep Track of Everything
There are a lot of small details that go into an organized payroll system, so it’s best to get an organization system in place as soon as possible.
Make sure you have a monthly schedule of what needs to happen and when. This will make sure you’re not stuck in your office for hours the day before monthly payroll is due.
If all of this seems too overwhelming for one person to handle, consider investing in one of the many payroll software services available. These range from basic to advanced and can automate nearly every step of the payroll process. Some can even file your state and federal taxes for you.
4. Use Employee-Friendly Software
If you do choose to use software for your online business, make sure your employees know how to use it.
This will make it easy for them to access their own records and manage their money for effectively. It will also reduce the need for you to answer payroll related questions as they’ll be able to find most of the information on their own.
5. Create a Budget
Budgeting is crucial when you’re managing every financial aspect of your business. Make sure you budget properly for each employees wages, especially if you’re paying them hourly.
If they are paid hourly, you should know in advance how many hours they’re planning on logging each month, so you don’t have any surprises when payroll is due.
Want to Learn More?
Online business payroll might seem like a complicated process, but there are a few things you can do to make the process easier. Staying organized and getting help where you need it are two ways to keep things running smoothly.
If you want to learn more about how to manage a business, check out the rest of our blog. We can help you streamline every aspect of your business, from payroll to other basic business operations.
