6 Payroll Strategies That Can Save Time & Money

Proper payroll management is an important aspect of running any successful business, but unfortunately, it’s often an area that’s overlooked. This can result in wasted time and overextended budgets; fortunately, there are a variety of simple solutions you can implement to see a massive improvement in a short amount of time! If your current payroll could use some attention, consider trying one of the strategies below!

 

1. Audit Yourself

Before you can fix a problem you’ll need to identify it. A good place to start is by taking a look over your current payroll expenses and comparing them to your payroll processing times. What method are you using to manage the payroll? You may want to consider replacing underperforming workers or even switching over to a digital system instead if your payroll department is constantly falling behind schedule. A software-based system can also help reduce your payroll costs if you’re currently employing multiple specialists. Once you’ve identified the current complications with your payroll setup, it’s time to develop a plan of action to address these issues.

 

2. Switch to an Automated Approach

As mentioned above, many businesses can benefit from a massive payroll overhaul. Rather than using traditional manual methods (where overall performance depends entirely on the size of your staff), you might want to consider making the switch to using payroll software instead. Beyond providing a significant financial advantage, this type of dedicated software can also help reduce payroll processing times and eliminates the vast majority of payroll miscalculations. Since the system is completely automated, it only needs information to be accurately entered the first time; after that, the software will manage all income and deduction calculations. Some advanced solutions like UZIO can even handle payroll distribution, further reducing the load on your payroll department employees!

 

3. Implement Time & Attendance Software

 If you’re currently keeping track of employee hours using physical timecards, you’re playing a dangerous game. Not only is this system vulnerable to timecard theft (where employees forge their hours to receive unearned compensation), but it’s prone to accidental errors as well. Even though a payroll employee may be trying to correctly compute timesheet information, it only takes one simple misreading to render an entire paycheck inaccurate. This isn’t a problem if you implement T&A software into your payroll management system! The software records data digitally (often even including GPS data for mobile clock in/clock outs!), which eliminates the possibility of any errors being made.

 

4. Convert Your Physical Files to Digital Documents

 If your current payroll management system relies solely on paper forms, folders, and file cabinets, you’re severely limiting the overall potential of your payroll department. Using a physical filing system makes instant data retrieval essentially impossible, a problem that can quickly cripple an already behind-schedule staff. Fortunately, switching over to a digital document storage system is relatively easy as most files can simply be scanned and uploaded to the new filing system. Once they’ve been added to the system, files can be instantly accessed using the “Search” function, meaning employees can find multiple documents in seconds rather than minutes.

 

5. Downsize Your Current Staff

Employing a large payroll department to manage your company’s payroll may seem like a necessity, but you can easily downsize your current staff after switching to using payroll software rather than relying on manual processing methods. Fewer employees mean lower overhead costs, resulting in an instant increase in your overall net profit! Of course, you’ll first need to ensure that your company’s payroll can be properly managed using primarily software, but with the proper payroll solutions, this shouldn’t be an issue.

 

6. Opt for Complete Payroll Solutions

Using only stand-alone solutions can make it very challenging to downsize your current payroll department, which is why we recommend choosing complete payroll solutions instead! These solutions can manage every part of your payroll (from T&A tracking to payroll calculations & distribution), often even including a variety of HR features as well! Systems like UZIO (which provides both HR & payroll solutions on a single platform) are great for your business, since data is easily accessible between the two departments, reducing processing time while increasing overall efficiency!

 

It’s Time to Take Action!

 As you can see, there are many different approaches you can use to improve the performance of your payroll department, and often these strategies can even be used concurrently! If you only take one thing away from this article though, it should be the importance of switching to digital payroll solutions. No matter the size of your current operations, these systems can help you refine your current processes and prepare you for any expansions moving forward.

 

Author Bio: Mohd Sohel Ather is the young and talented senior primary software engineer. He is motivated with fresh and unique ideas and has a passionate interest in tech blog writing.