Do Small Businesses Need Payroll Software?
When you work for someone else, payday is one of those days you look forward to every month. When you own your own business, however, payday becomes one of those days you dread -- especially when you don’t have the necessary tools and payroll software to get it done right.
If you want to avoid all the late hours, booming headaches, and frustrating nights spent trying to make sure your business’ payroll is perfect, finding an efficient payroll software can solve all your troubles.
Of course, not all payroll software is created equal and you’ll have to take a lot of things into consideration when choosing the right one for your small business.
Independent Contractors vs. Employees
Your employees are generally broken down into two major categories -- the independent contractors and the employees. Ideally, the best payroll software will have features that cater to both categories, giving you an all-in-one solution.
With that being said, independent contractors are often much easier to handle. You’re not on the hook for paying their taxes and simply need to have an efficient way of getting the money to the contractor.
Still, payroll software can help you keep track, schedule, and manage these transactions. It can also assist with 1099s and storing contracts.
With employees, quality software for payroll becomes a necessity. There’s a lot that needs to be managed with employees and the software is your gateway to keeping everything accurate, accessible, and organized.
Benefits of Payroll Software
Most small business owners don’t feel they need payroll software, especially if they don’t have a long list of employees to manage. That’s why we can understand when an owner is hesitant to jump aboard the payroll software train.
Still, finding the best payroll software for small business owners comes with a wide range of benefits -- no matter the size of your company. We’re going to discuss three of the most prominent benefits below and how they can have a positive effect on your business.
1. Saves Time
Think about all those long nights you spend doing math and entering data into various sheets several times just to make sure everything is correct. Think about the time you spend writing checks, preparing envelopes, mailing checks, and wiring funds.
Now I want you to imagine if you had all that time to spend doing something else. Wouldn’t that help you stay a little more productive every month and relieve some of that end-of-month worry you always had?
The best payroll software for small business owners can turn several hours worth of work every month into just a couple minutes of easy work. That’s what we call powerful.
2. Avoid Mistakes
One of the things that make small business owners nervous when doing payroll is mistakes. Everyone understands the magnitude of a payroll mistake and how it can negatively affect the employee, but human errors are more common than you think.
Did you know the IRS sends out nearly $5 billion in penalties every year due to mistakes made with employment taxes? That’s a lot of money and there’s a good chance most of it could be avoided with the right tools and resources.
Quality payroll software can help you stay on top of regulations, rules, laws, withholdings, scheduling, and so much more. It takes any and all guesswork out of the equation.
3. Shift Focus
As a small business owner, you have a lot on your plate. Chances are you didn’t start your company to do payroll and it’s definitely not something you want to be spending hours on end doing.
The last thing you need to worry about is the payroll process -- especially mistakes that could’ve been avoided during that process. With the right payroll software, you finally have the ability to focus solely on growing your company.
Signs Your Small Business Needs Help
Knowing when it’s time to find a payroll provider or software can be a tough call for a business owner. On one hand, you’re telling yourself you can continue to manage it without a problem. On the other hand, you can’t wait to rid yourself of the added responsibility.
The truth is any business with several employees can benefit from payroll software. Still, it doesn’t mean every business needs to invest in payroll software. To help you better determine whether or not you should consider this addition to your operations, we’ve listed some of the major signs your business is ready for help:
- Automation is one of the easiest ways small businesses are innovating to create a more efficient and productive environment. Investing in payroll software is one step in the process.
- You might want to consider payroll software if you find it difficult to manage all the unique administrative tasks when doing payroll. It can handle bonuses, weekly schedule, monthly schedule, benefits, and much more.
- Small business taxes can be a nightmare for any owner. If you agree with this, payroll software helps simplify this process so you can sleep better at night when taxes are due.
- If your employees are constantly asking for access to their paycheck history or constantly have requested to change personal information, payroll software takes a large amount of weight off your shoulders.
- Businesses are unique in the different techniques they use to operate their company from top to bottom. If you need a way to integrate your payroll with other technology in the office, payroll software can help.
A quality payroll software comes with great customer support to ensure your demands are met at all times. This gives you confidence in your payroll and allows you to feel much better about the future of your business.
Consultants In-A-Box Is Here to Help!
If you’re searching for the best payroll software and need a provider that stands by their clients, Consultants In-A-Box is ready to serve you. We offer a quality solution to your payroll needs and ensure our clients are met with the most courteous customer support possible.
Contact us today to discuss how we can assist your company with its payroll needs. We can’t wait to hear from you!
- Jordan VanMaanen