While ensuring that their employees and associates are properly compensated for their time and labor may seem like one of the most basic aspects of business management, there are numerous missteps, complications and blunders that new business owners are likely to make. Payroll problems can be toxic for morale and you would do well to take whatever steps are necessary in order to avoid them. Creating and maintaining a dependable, timely and issue-free payroll process is an issue of the utmost importance.
Overlooking PTO
Failing to account for PTO when calculating hours or drafting paychecks is one of the most common oversights new business owners are likely to make. Setting up a separate reminder is often worth the time and effort involved. Trying to deal with an employee who was not properly compensated due to an illness, personal day or vacation day is not a situation you want to find yourself in.
Banking Holidays
While the delay caused by an overlooked banking holiday may seem like just a minor complication, it can lead to no end of problems. Trying to handle the entire payroll process in real-time means that any change to the routine is more likely to cause problems or complications that your business may not be equipped to handle. Trying to keep payroll management efforts a week or so ahead makes it much easier to handle banking holidays and other potential obstacles with greater ease.
Accounting
When it comes to bookkeeping and accounting, there is no such thing as a small inaccuracy. An accounting error that interferes with employee’s payouts and compensation is a preventable issue. From automating the process through use of payroll software to hiring an employee to handle your accounting and payroll processes full-time, doing whatever it takes to ensure greater accuracy with your accounting and bookkeeping efforts can be worth the time, effort or expense.
Outdated Banking Info
Working without outdated banking information is another common misstep that can be easily prevented. Redundancy efforts like double-checking to ensure that employee account and banking information is accurate, complete and up-to-date can eliminate many potential issues. Failing to pay your staff, accurately and on-time, could lead to problems with morale, turnover or even have a negative impact on your organizations image and reputation.
Handling the payroll process effectively is an important responsibility, one that no business can afford to neglect. Botched payouts, inaccurate accounting or banking delays that might keep your staff from getting paid promptly and without issue can have a disastrous impact on morale.