Entrepreneurs need to ensure their payroll is up-to-date and accurate when running a small business. Guaranteeing this information is frequently updated, and correct is vital to keep any small business running smoothly.
While double-checking and verifying employee payroll information may be time-consuming, it will significantly pay off in the long run. When payroll information is incorrect, it can cost small business owners a lot of time and money. Therefore, when completing payroll information, small business owners must do so as accurately as possible.
Here are six tips small business owners can use to boost their payroll accuracy:
1. Recheck your work.
When completing payroll, small business owners need to take time to review their work. In addition, they should check it for any errors.
Allowing time for entry and review as a separate task can help ensure accuracy for any important job, not just payroll! Once payroll is entered, allowing a break before reviewing the payroll task for accuracy can be a sufficient means to review data with a fresh set of eyes. They should then come back to their payroll task and check their work.
Comparing data with previous payrolls may also be helpful. It can help ensure all parties are included and if wages and hours make sense based on historical data.
When small business owners give themselves this time to take their minds off of what they have just completed, they come back with a clear head and a fresh set of eyes. In addition, this makes it easier to catch any typos or errors.
2. Have someone else check your work.
Small business owners do not have to attack payroll alone. If possible, they can rely on a trusted colleague for help ensuring their payroll information is accurate. Once they have spent time verifying the information and spot-checking it for errors, small business owners can consult someone who can prove it.
Having a second set of eyes look at the information will increase the likelihood that any errors are caught. An inaccurate piece of information that did not see the small business owner’s attention may immediately catch someone else’s attention.
3. Check your records.
Another way small business owners can ensure their payroll information is accurate is by referencing their records. When verifying that employee information, hours worked, and paid rates are correct, they can confirm the data by looking at other documents, such as W-2s or offer letters when running payroll with new employees on the payroll.
These documents should provide a good baseline of reference. If payroll records seem incorrect, this is a quick way to double-check the information.
4. Verify information with employees.
If a small business owner finds that their payroll information does not match their other records of employee information, they should directly consult each employee. Furthermore, suppose they are looking to input an employee’s handwritten information into their payroll records and are not entirely sure what it says. In that case, they should also verify the information with the employee.
While it may be time-consuming for small business owners to consult each employee whose information they need help verifying, it will save them time, confusion, and stress in the long run. The last thing any small business owner wants is to pay their employees the incorrect amount or accidentally send their money to the wrong place.
Social security numbers, zip codes, and date of birth information can easily be misread and entered wrong, causing issues that could be prevented.
Proactively verifying payroll information is an easy way to prevent these problems.
5. Look for abnormal information.
When small business owners review their payroll records, they should look for any information that seems absurd and highly unlikely to be accurate.
For example, small business owners should keep an eye out for social security numbers with incorrect digits, date of birth that does not make sense, hours worked that are extraordinarily high or low, and paychecks with abnormally high or low totals. Scanning payroll records for such data will help small business owners guarantee that the information is correct, saving them time in the long run.
6. Call on PaySmart.
If small business owners are looking to offload their payroll duties, PaySmart is here to help. PaySmart provides small business owners with payroll services designed to ensure payroll records are accurate and up to date. For more information on PaySmarts services, visit our website.
Ensuring payroll records are accurate and up to date can be a daunting task for any small business owner.
However, it is essential to remember that verifying and updating payroll information is a process and one that small business owners do not need to tackle alone.
Small business owners should use these tips to guarantee their payroll information is correct. They should double-check their work, have a trusted colleague with the appropriate security clearances review it, and consult employees if they have any concerns with their information.
If you are a small business owner preparing to complete your payroll responsibilities, do not hesitate to dive in. Your whole business and PaySmart are here to support you. You’ve got this!
PaySmart is a payroll provider located in Mechanicsburg, Pennsylvania, supporting small businesses in the Central PA region. We are dedicated to helping small businesses take care of their payroll needs. To learn more about how PaySmart may provide payroll solutions, please get in touch with us at 717-766-1777. Our New Client Concierge is waiting for you!