Taking a look at some great paystub management tips and tricks and the basics of financial record keeping. How to properly keep your paystubs in order.
Paystub management and payroll are easily some of the most daunting tasks for any small business owner. After all, most small business owners aren’t accountants, and there’s a reason that accountants go to school for 4 years to learn how to do what they do!
But never fear. In this article, we’ll break up paystub management processes into four easy to follow tips to help you get past the difficulty of it.
Bank Accounts Strictly for Business
Particularly if you’re the owner of a small business, it can be very tempting to use a personal bank account for all of your monetary transactions. However, this will only add to the complexity of your pay stub management process.
After all, if you have to do an audit at some point in the future and you go back through all of the transaction history, and you have to sort through both your personal transactions as well as your business transactions, that just adds a whole new layer of difficulty to the process.
For some types of companies, you may not even be legally allowed to use a personal bank account for business transactions. So it’s best to avoid all that difficulty and just go with a business bank account right from the get-go.
We are now in the 21st century. There’s no reason that your paystub management shouldn’t reflect that.
The software and tools available today, like PayStubs.net, will greatly simplify your payroll management. Some payroll management software even have the capacity to automate a lot of the mundane tasks that go into financial record-keeping. That will put more time back in your day to focus on tasks that grow your business.
However, remember to keep budget in mind. If you’re a small business with only a few employees, it may be way overkill to go in for an enterprise resource planning (ERP) tool that is targeted more for multinational corporates. Make sure the tool is customized for your segment.
Avoid Cash or Use Receipts
Cash is the bane of any solid record-keeping strategy. Cash disappears so easily, and it’s very difficult to track. If you can, try to make your business a cashless one. Having online records of everything is just simpler.
If you absolutely must use cash, then use receipts for your paystub management. Also, upload those receipts to the cloud to ensure that you never lose it.
Make It a Recurring Process
Don’t let your payroll process by a random day of the month. Instead, make it a specific, recurring time. That way, you can ensure that you never forget to do it, and you do it right on time with all of the other things that demand your attention.
The right payroll management software will remind you of whenever you have to complete any tasks on a recurring basis.
Paystub Management Made Easy
Although it may be one of the tasks that most business owners aren’t typically skilled at already, paystub management is not hard. Use these tips in your business operations and you’ll be sitting pretty at the next month’s close.
For more small business and career advice, make sure to check out the rest of the articles on our blog!