One strength that many small businesses have is flexibility. They are often nimble organizations that are able to react to new situations quickly. This is a great quality to have! But have you ever thought of the flip side of this strength, the weakness that can be a result of this same flexibility?
Often times small businesses do not have the rigid processes and procedures in place that larger business rely on. And while this can be a good thing, there is also something to be said for having more structure. In the area of payroll, having a set system in place can be a real benefit to a small business by helping you to:
Manage Your Cash Flow. When you have a set procedure for payroll, you know what to expect. You know exactly when employees will be paid and when your payroll taxes will be sent in. The regularity of payment enables you to budget, plan ahead, and promptly fulfill these payroll obligations as well as other expenses you have.
Keep Current with the IRS. Being on time with your payroll is important, in part because you have obligations to report earnings as well as pay taxes in a timely manner. Adhering to a fixed schedule will help you to be confident that you are getting all necessary forms and payments to the IRS by their deadlines as well as avoiding costly penalties that can result from your failure to do so.
Simplify the Implementation of Your Payroll. When you determine your payroll system, you have to establish a set schedule, define your process, and assign an administrator to oversee the system. By thinking this through on the front-end, you make it easier to implement your system correctly and consistently. This ensures that you won’t forget an important task or miss a crucial deadline.
Of course, the simplest system for handling payroll is to delegate it to a company dedicated to providing payroll administration for small businesses. The experts at The Payroll Department are happy to take this responsibility off your shoulders. Get all the benefits of having a sound payroll system in place without having to use your employee resources to do it. Talk to Teresa Ray at (317) 852-2568 to find out how.
-Jessica of The Payroll Department Blog Team