Managing payroll can be among the most time-consuming and complicated administrative tasks for businesses large and small.
The process requires companies to comply with a bevy of federal and state employee tax withholding mandates, accurately calculate pay for workers who may or may not be full-time hires and ensure that payroll is properly funded from one pay cycle to the next.
The typical small business starts out handling these functions in-house, treating payroll as a standalone segment of its back-office operations. While that may suffice early on, using FINSYNC’s integrated approach to managing payroll can significantly streamline the process, saving you time and money.
Beyond that, however, using an integrated payroll system can also yield valuable insights by automating the flow of information between payroll and accounting, cash flow management and other key administrative tasks.
“A payroll service takes the burden of getting money to the employees and managing tax liabilities off the business,” says Dave Olsen, President of Payroll Software and Services at FINSYNC. “An integrated payroll approach helps take the ability to manage even further by linking to projects the business may be doing, time worked by employees and improved accounting reports.”
Payroll Management Support
Managing employees and their payroll is one of the most costly areas for many businesses. Integrating payroll with other back-office functions and smart online tools can simplify and speed up the payroll process overall, while also ensuring greater accuracy.
FINSYNC’s system of accounting tools links a small business’ payroll with their other general ledger accounts and creates a virtual hub that tracks all financial transactions. It also has a built-in direct deposit function, automatically generates accurate tax returns and payments, and includes software for tracking work hours for employees.
You can use an integrated payroll process to pay not only full-time employees but also independent contractors who require the issuance of a 1099 tax form. The system can also adapt to suit firms that pay employees based on commission, or on how often they deliver a product or service.
Detailed Insight Into Your Cash Flow
Managing cash flow is essential to keep a business thriving, and payroll is one of the biggest recurring expenses for an employer. To effectively manage a business’ cash flow needs, it makes sense to give managers a steady, real-time view of the company’s outlays, especially when the time to cut payroll checks comes around.
Contrast these benefits to the standard approach small businesses often use to handle their payroll and related bookkeeping tasks, which typically means relying on employee time sheets that are not turned in until the end of the week to gauge hours worked and, consequently, the company’s payroll for that pay period.
If, like most businesses, you rely on timely invoicing to help maintain your cash flow, you have to calculate the timing of invoices and any pending expenses from a spreadsheet or other bookkeeping method to begin to get a clear picture of how prepared you are to fund your payroll needs.
Integrating payroll functions with other administrative tasks easily avoids all of this. “Cash flow management becomes more effective and information for owners is more readily available in an integrated environment,” Olsen says.
Improved Access to Capital
Having a good understanding of how your business is doing day-to-day makes it possible for entrepreneurs to manage their companies more effectively.
Accessing current and reliable information on your business is much easier with a responsive, integrated system. This can also enhance your business’ access to capital, as a track record of solid performance increases the likelihood of being approved for a business loan.
FINSYNC’s integrated payroll system combines payments, payroll projects, accounting, cash flow projections, cash flow management, expenses, reimbursement and time tracking. Even with all of these capabilities, it can still be up to 30% more affordable than standalone services from traditional payroll companies.
So, ask yourself. Can your business really afford not to use an integrated payroll system?