Payroll. It's at the core of every business. It's literally what fuels it. However, recent studies show that sticking to outdated systems in the payroll process might be costing businesses more than they think.
It's not just employee and bookkeeper time on the line anymore. Ever more accurate and detailed payroll records are essential to meet the demands of employee regulations and deductions, audits, labor disputes, tax liabilities, and the list goes on.
So why - in a world where new tech rules every other business sphere - is payroll still being controlled by spreadsheetsTweet This
The Big Payroll Oversight
For some reason, when it comes to payroll, offices go back to Mad Men style, with handwritten, filled out paper timesheets and outmoded spreadsheets still dominating the day.
Poll data by the National Federation of Independent Business (NFIB) shows that 64% of small businesses perform payroll in-house. The rest use an outside accountant, payroll service or other solution. Of the respondents, 62% use a spreadsheet to process payroll, and 66% do not tie payroll to an accounting system.
The most surprising result? The reasons why businesses stuck to the old systems. According to the NFIB, the poll respondents performed payroll this painstaking way to "save money" (37%) and to "maintain greater control and oversight" (32%).
In fact, the opposite is true. The American Payroll Association estimates that companies save an average of 2% of each employee's total salary by using automated systems that reduce payroll errors and speed up the overall process.
62% of businesses use spreadsheets for payroll hoping to save money and maintain control. But they lose time and cashTweet This
"This is the big payroll oversight. So many companies could be saving time and energy with just a mental, then a technology, switch. It's like a light bulb needs to go off. Bing! It's real money and critical recordkeeping on the line," said Matt Rissell, CEO of TSheets.com. The time tracking, reporting and management company offers a payroll savings calculator that shows how much businesses can save with online time tracking.
The Old School Unraveled
Certified payroll expert Nancy Smyth of Sunburst Software Solutions and accounting and tax guru Bruce McFarland of L&R Tax Preparation recently worked with TSheets to transcribe the complete manual payroll process.
The resulting infographic pinpoints eight distinct steps in the manual style, but also identifies a number of additional tasks for different business situations.
Copy and paste the code below to share this infographic on your website
<a href="https://www.tsheets.com/resources/time-tracking-for-payroll.php"><img src="//cdn.tsheets.com/images/rc_assets/payroll_process_preview.jpg" alt="Payroll with TSheets automated time tracker" title="TSheets Solves the Payrol Problem"/></a>
In total, up to 35 actions might be necessary to perform on a weekly, monthly and quarterly basis in order to run payroll manually. When you multiply that productivity loss across all industries, what a waste.
New Tech Results
This complicated, multi-step payroll process can be broken down and made seamless using the latest in cloud-based technology.
"Imagine taking the payroll process down to just a few clicks of a mouse," Rissell said. "You retain all the functions, records and time entries required to keep the integrity of your payroll, but get added accuracy, protection and money savings. Sound too good to be true? Not anymore."
By using an automated time tracking solution that works on multiple platforms-including in the field on mobile phones, by text messaging and other methods-employees can record overtime, paid time off, project-based pay, and notes associated with time cards.
However, this critical piece of tracking employee time is often overlooked as it relates to the payroll process. This is largely due to a lack of awareness of an easy-to-use QuickBooks integrated time tracking system.
TSheets offers one-click QuickBooks data syncing, as well as a top-rated app on Intuit's apps.com. So payroll can be run in one or two actions with this method, simply by syncing recorded time data into QuickBooks, then running the final numbers.
My payroll for 45 people has shrunk from a six hour drudgery to a 45 minute necessity thanks to TSheetsTweet This
Bookkeepers, accountants and managers require reports that fit a number of situations, especially when working with QuickBooks. TSheets offers reports in over 20 different formats, including project, payroll, GPS tracking, hours by employee, and other options.
In examining the payroll breakdown, the end results are clear. Old methods are wasting company time, money and effort across the board, while obscuring critical details about the way a business actually runs.
New technology is defining a faster, more accurate path to payroll bliss-leading companies to a better place, even down to the bottom line.
I have much faster insight into the status of our consulting projects and my team loves TSheets for its ease of use! I could not get the granularity with QuickBooks Online alone.Jim Brown of the Coil Group