15760 Ventura Blvd, Suite 610 Encino, CA 91436
15760 Ventura Blvd, Suite 610 Encino, CA 91436
Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

How Payroll Impacts Your Employee’s Trust

Effective small business management requires your employees to trust you, and an essential aspect of maintaining employee trust and morale is proper payroll management.

One of the quickest ways to lose your employees’ trust is to mismanage their money, resulting in a late paycheck, missed wages, or other issues. In return for losing this trust, your business may suffer performance issues, high employee turnover, and more consequences.

Fortunately, these consequences can be avoided by mastering proper payroll practices and ensuring your employees’ concerns are taken care of.

The Importance of Payroll Management

Payroll management is a critical aspect of successful small business management that too many business owners neglect.

According to a survey on new wealth by Charles Schwab, 59% of American adults live paycheck to paycheck. As such, most working people depend on their paycheck to avoid missing payments on bills or going into pressing debt.

If an employee’s paycheck doesn’t arrive on time or paid less than they have earned, they risk preceding bills, paying overdraft fees, cutting grocery spending, and other significant issues.

Beyond financial issues, these situations can harm your employees’ mental well-being and cause them to experience stress, anxiety, loss of sleep, or other problems.

Even if your small business has never made any major payroll-related mistakes to date, all it takes is one missed or erroneous paycheck to erode the trust you’ve built with your employees.

Other Benefits

In addition to helping maintain your employees’ trust, effective payroll management produces several other benefits, including:

●   Consistency: Organized payroll records help your business maintain consistent bookkeeping practices and provide accurate balance sheets, cash flow projections, profit-and-loss statements, and other vital documents.

●   Low Employee Turnover: Missing a paycheck is a good enough reason for many employees to start searching for a new employer. Proper payroll management can help prevent this and lower employee turnover rates.

●   Avoid Tax Penalties: Small business management includes reducing your company’s unnecessary expenses. Maintaining good payroll practices can help your small business avoid significant tax penalties.

By making an effort to learn and implement effective payroll management practices, you can avoid losing employee trust, decrease your turnover rates, improve efficiency, and enjoy several other great benefits.

Need Help?

Small business management and payroll management are incredibly important, but they can be challenging to do alone.

At ATPP, we specialize in providing practical, affordable, and professional business accounting and payroll services to small businesses in Los Angeles County. If you need help with bookkeeping and payroll management, contact ATPP today to learn how our services can help your small business.