Effective business payroll services are the cornerstone of a strong company. Discover how missing the mark on this task can inhibit business growth.
How are your business payroll services doing? Are they as efficient and beneficial as they can be? If there are inconsistencies or general disorganization, it can mean major problems for your business, of course. But this can spell trouble for your employees and even your customers as well.
There seems to be a continual stream of tasks needing your attention on a daily basis. So, it may seem easy to put off dealing with your payroll services until another day. However, payroll impacts so many aspects of your business. Giving it your full attention as soon as possible is critical to your business growth and success.
Here are five detrimental ways your business can be impacted by ineffective payroll services or payroll software that is lacking:
#1: Employee Morale
Without consistent, efficient payroll services, your employees may have to deal with getting paid late or errors on their paychecks. When this happens, employees don’t feel like they can trust your business. Therefore, it becomes tempting for them to look elsewhere for employment. Of course, they may continue working for you amidst payroll struggles. However, they will be less inclined to do their best if they don’t feel like you are doing your best as an employer.
Employees who feel insecure about their incomes or as if they can’t depend on their paycheck to come as it is supposed to come will lag in productivity and company loyalty. This is a problem for all parties involved. Your employees aren’t happy and your customers will not receive the services or products they expect. The problem trickles from the top down and eventually wears away at your business potential.
#2: Continual Time and Productivity Drain
So your payroll software is old and outdated or you don’t have a team dedicated to payroll services—or both? These issues often become a drain on your time and productivity. There are only so many hours in the business day and while the time spent on payroll services is essential, your business can’t afford for it to take away from other necessary business tasks.
Furthermore, payroll services must be on a very strict schedule in order to be effective and dependable for your employees. So there’s no room for error or wiggle room for lateness. If the business owner or administrative assistant is trying to manage payroll along with all of the other duties of their position, chances are good that something (often many things) will not get done like it should. It is for this reason exactly that many small businesses and companies choose to outsource payroll services to the experts.
#3: Possible Penalties for Errors
Any business owner who has had to deal with tax penalties due to errors in payroll services will tell you to do everything you can to avoid this scenario. The bottom line is that whoever is in charge of your payroll must be doing it accurately and taxes must be paid accordingly each and every time. Once again, there’s no room for error. If you don’t handle it properly within the necessary time limits, your company can incur significant, costly penalties.
Staying on top of any new tax laws related to employee payroll is also important for your business. Unless the person doing your payroll has a full understanding of the complicated obligations to the state and federal government, your business could be vulnerable to legal issues.
Avoid the Problems Associated with Ineffective Payroll Services
Stopping to consider the ramifications of ineffective or inconsistent business payroll services can be overwhelming and discouraging. The good news is you can turn to our team at Incompass Tax, Estate, and Business Solutions to get your payroll services back on track immediately. Our experts will ensure your business has the right payroll software and services in place to meet all of your tax and legal obligations, keep employees satisfied and grow your business.