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.

Why Your Small Business Needs to Master Payroll

As you surely already know, one of the most important aspects of successful small business management is efficiency. Being efficient in every aspect of your small business can help ensure that you are saving money where possible and not dedicating too many hours and resources to complete certain tasks.

One area in which almost every company can improve their efficiency is payroll. While payroll can be a difficult and daunting task, it is critical that it is done correctly. Any missteps could lead your business to costly tax penalties or result in violations of the Fair Labor and Standards Act. Keep these factors in mind when deciding whether or not learning how to master payroll is worth the time and effort.

Why Efficient Payroll Practices Matter

Avoid Tax Penalties

One of the major factors of effective small business management is reducing unnecessary expenses. Small businesses generally cannot afford to throw away money, even in small amounts.

Improving your company’s payroll practices can make sure you are not subjected to extreme tax penalties. You should be sure that you understand both state and federal tax policies and constantly check to make sure your payroll practices comply with these policies.

Maintain Consistency

Precise and organized payroll records help your business maintain consistency in other aspects of bookkeeping. Tools such as balance sheets, cash flow projections, and profit-and-loss statements depend on accurate payroll practices.

Neglecting to ensure that your payroll records are consistent can make it difficult to maintain efficiency in other areas of bookkeeping.

Take Care of Your Employees

Efficient payroll practices can also be considered an ethical matter. While you surely wouldn’t purposefully garnish your employees’ wages or not pay them accurately, these things can happen when your payroll practices are not optimized.

Small business management includes ensuring that your employees are taken care of so they continue to be motivated to perform their duties properly. As such, it is important that you make the effort to master efficient payroll practices.

Tips to Improve Your Payroll Practices

Proper Training

First of all, you should ensure that your payroll manager and all employees involved in payroll are adequately trained. It is important that your employees are properly trained to abide by payroll laws and requirements. This can protect your business from violating any state or federal policies.

Consider Outsourcing

If your resources are limited and you are not able to hire a payroll expert at your company, consider outsourcing.

Outsourcing payroll will make sure this task is being taken care of by a professional who understands state and federal regulations. Additionally, it can help increase productivity in your business as there is one less distraction for you or your employees to worry about.

Stay Organized

Once your payroll practices have been established, you need to take care in accurately maintaining any and all relevant records. These records should be kept on hand for at least three years in order to protect against any discrepancies or inconsistencies. Precise record keeping is an incredibly important part of payroll that is often overlooked.

Get Assistance from ATPP

Small business management can be a challenging and stressful occupation. Ensuring that every aspect of your small business is running as efficiently and effectively as possible can be overbearing, particularly when it comes to something as important as payroll.

ATPP is a full-service accounting, taxes and payroll firm in Southern California. If your small business needs help with improving its payroll practices, contact us today. Our experts are dedicated to simplifying your business, so you can focus on what you do best.