One of the most difficult areas small business owners need to manage is payroll, as it comes with several challenges and obstacles we need to learn how to deal with. As time goes by and we become more experienced, dealing with such challenges might be easier. Yet, it will take some time before we get there. That’s why hiring a third-party payroll agency has become one of the most popular decisions among startups, entrepreneurs, and small business owners.
Depending on the field of our company, we will be hiring different types of workers and personnel. As a result, we might end up misclassifying our employees and listing them in our payroll records incorrectly. This tends to happen more to companies who work with contractors and employees, and misclassification of workers can have serious consequences. Our responsibilities as employers will be different towards contractors and employees, which is why we must make sure we are classifying them correctly and compliant to regulations.
When it comes to payroll, we must make sure everything is taken care of in a timely manner, as any delay or issue on this area will affect our most valuable asset, our employees. However, this tends to be one of the biggest challenges for small businesses, especially for those who rely on in-house cash or check payments. Therefore, the best way to make sure we don’t get behind with our payroll duties is by hiring a specialized team dedicated solely to this area of our business.
Another common challenge small businesses tend to face, especially at the early stages of the company, is keeping track of the hours and days our workers have completed. Some businesses are able to invest in punch-clock systems before the start operations, while others might still feel comfortable using paper. However, these methods might not be completely accurate or reliable, which could lead to inaccurate payroll checks.
Just as keeping track of our workers regular shifts, recording their overtime might represent an additional challenge we might not have expected. Monitoring the hours that our employees work as part of their regular shifts in order to qualify for overtime is important. This will help us make sure their payroll is accurate and reflects the corresponding payment for all their hours, resulting in higher levels of employee satisfaction and company efficiency.
If you are struggling with these or any other payroll issue, hiring a payroll consultant or a third-party team of experts might be the best way to ensure we face and overcome these challenges the best way possible. In order to have the capital you need to invest on your payroll department, you can factor your account receivables and get a cash advance on the fly. Get in touch with us and learn more about factoring your company’s invoices and make the most out of your finances.