How Online Payroll Can Make Business Growth Easier

Whoever said “better late than never” wasn’t a small business owner like you are. When it comes to employee payroll, late simply doesn’t cut it. Late means angry employees and government fines for non-compliance – not exactly an environment for business growth.

But what if you don’t have the time to handle payroll yourself, or the budget to hire a payroll administrator? What can you do?

The solution is easier than you think.

Why You Should Be Using Online Payroll

With online time tracking and payroll, you can start saving time and money – today, right now – and avoid expensive errors that damage your business in the process.

For instance, an online payroll system can automatically calculate and withhold the necessary taxes from each employee, as well as your employer-level liabilities. That means managing taxes just got a whole lot easier.

Online payroll also minimizes the risk of mistakes. Why is this so important? Because inaccuracies and miscalculations cost your business money – a lot of it.

In fact, according to statistics from the IRS, 4 out of every 10 businesses will face an IRS penalty based on payroll mistakes. And in 2013 alone, the IRS issued 6.8 million penalties totaling $4.5 billion related to employment taxes. Online systems minimize this risk by automatically doing all the math for you.

What’s more is that the benefits of such a system go far beyond just payroll. Business strategy gets a lot easier, too. With online time tracking and payroll, you can actually see:

• Data that can help you project future job costs and make sure time and materials are being allocated in a way that turns a profit.

• The financial value of specific projects and tasks so you can ensure everyone’s time is being used wisely.

• Data that will help you invoice customers more accurately.

• Overtime costs so you can better optimize employee scheduling.

What does all this mean for you? In a word: Growth.

Successful business growth comes from automation and delegation, making the resources and funds you have go as far as possible.

And one of the easiest ways to plan for growth is by selecting an online time tracking and payroll option. With an online system, you can get detailed reports in minutes on overtime, PTO and payroll to plan appropriately for the capacity of your team.

Still not convinced online time tracking and payroll is the way to go?

An online provider can benefit your company in so many other ways:

For instance, with historical data on actual time spent, you can significantly improve your ability to accurately estimate tasks and projects – meaning you have the potential to win more jobs and boost profits.

You can also manage projects more efficiently. That’s because you’ll have much better insight into when you can tackle a new initiative, and if you need to re-prioritize or reassign work. When time and budget are being monitored, you can also conquer scope creep.

And of course, don’t forget about employee time fraud. Inaccurate time tracking can cost you thousands of dollars every year. Using a payroll system that offers a phone time clock option, overtime monitoring and eliminates buddy clocking will allow a growing company like yours to reach its maximum potential.

Even better, with online time tracking and payroll, you don’t have to hire a payroll administrator to handle this function for you. According to the U.S. Bureau of Labor Statistics, the median salary for payroll and timekeeping clerks in 2015 was $41,000. That’s a big price to pay for a small business.

So how do you find an online payroll solution that’s right for you?

Choosing a Payroll Solution

A simple Google search of “online payroll” yields over 93 million results. That’s a lot of prospects to weed through. Instead, there are some steps you can take to find the provider that’s right for you.

Your first step should be to do your homework. The best tool – for both your team and your budget – differs from business to business.

There are always the big boys like ADP and Paychex. But these companies oftentimes aren’t a great fit for a small business. For instance, they may provide a bundled package with services you simply don’t need – but still have to pay for.

This will drive up your costs – you don’t want a solution that offers more than you need.

Instead, reach out to your network and ask trusted colleagues for referrals and details about their own experiences with a payroll and time tracking provider.

Once you have a short list of names, determine the services that you expect your small business will use over the next year or two – then go through the websites of various vendors to ensure they can meet your needs. Be sure to read online testimonials and reviews too.

In addition, contact providers you’re interested in and ask questions such as:

1.     What services do you offer?

2.     Are there any add-on services not included in your basic package?

3.     How much experience does your company have?

4.     Is your system cloud-based – and can it interface with other systems like QuickBooks?

5.     What kind of support can I expect?

6.     How do you manage time and attendance?

7.     What is your pricing structure?

8.     What are your service levels?

9.     Can you give me some examples of the results you’ve helped other businesses achieve?

10.  What if I wanted to take payroll back in-house?

Also be sure to ask for client referrals. If a company seems reluctant to give them, cross them off your list.

Once you’ve gathered all the background information, look for providers with extensive experience, a personal approach and solid customer service, advanced technology and security, and transparent pricing.

Not ready to make a commitment?

If you’re torn over the best solution for you, you can use them before deciding. Sign up for free trials with a few different online payroll providers. Free trials essentially let you “try before you buy” so you can get a taste of what it’s like to work with a particular online payroll service.

You can then make the best decision for your company based on first-hand experience on how it fits into your own business.

Whatever provider you do choose, you want to ensure they:

1.     Pay your employees on time;

2.     Pay your payroll taxes on time; and

3.     File your payroll forms on time.

Remember, “better late than never” just doesn’t work when it comes to payroll.