Small business accounting advice for payroll entry activities
As payroll specialists we always want to ensure that employees are compensated accurately – the first time around. With so much time spent on gathering data, inputting time, and processing – who wants to spend time doing it all over due to simple errors.
When we consistently follow best practices in payroll entry we can ensure that we do not have to issue manual paychecks for missed hours, or better yet, run additional payrolls through your payroll provider which can prove to be costly for your organization.
- First, organizations should have a structured payroll process that is documented and followed consistently for each payroll.
- Additionally, extra steps should always be taken to validate the data and audit the payroll prior to processing
- these extra steps can help identify potential issues with your payroll such as shortages of hours;
- too much overtime, and overall compliance with FLSA for non- exempt employees.
Payroll Automation – It’s Time To Automate
By far, one of the best practices in payroll entry is simple — automate your payroll. If your organization is still capturing time manually, there is a high probability rate that your error rate is being negatively impacted. Improving the accuracy of payroll is a key benefit as a result of automating your time and attendance systems. (Proxus – Managing the Business of Employment)
According to a 2009 HR Management article, implementing an automated time and attendance system can save most companies between 2% – 5% of their total payroll costs, gained through improved process efficiencies and staff reductions.
These savings come from three key factors:
- time theft
- time spent manually figuring time sheets
- human error in calculations.
These systems typically provide one of the fastest returns on investment your company can make in payroll-related software. Additional best practices in payroll entry include, but are not limited to:
- Use a web-enabled time system to record, calculate and validate time worked
- Managers should be given access to review their employees’ work on a daily basis via a web-enabled system, even if they are out of the office
- Use a time and attendance system to capture simple and complicated accrued time off. Validated balances should be available at the timecard point of entry.
If you still have a manual payroll process you may also want to consider outsourcing your payroll function. Ultimately, the best small business bookkeeping advice for leaders is to hire additional help. Luxa provides a dedicated payroll specialist to complete all of your payroll administration needs. We recognize that payroll can be time intensive and fraught with regulatory reports. Consider letting us manage the time-consuming tasks of payroll processing so you can focus on running and growing your business.
LUXA offers payroll solutions and outsourcing support for small business owners in the immediate Tulsa and surrounding business community.