Embarking on the journey of running a small business is no small feat. To be honest, it takes a lot of hard work and dedication.
On top of starting and running a small business, many things come with the job – worrying about marketing, customer service, employees, and, yes… payroll 💵.
As a payroll and HR provider, we want to take a moment this year to discuss payroll challenges and provide solutions for small business owners looking to tackle those payroll challenges and gear up for a year of growth!
Let’s dive into the top five payroll challenges and solutions for small business owners.
#1: Inaccurate timekeeping: the time drain on business owners
Small businesses often grapple with the challenge of accurate timekeeping, a process that, when done manually, consumes valuable time.
According to the American Payroll Association, nearly 43% of businesses need help with time and attendance accuracy, diverting owners’ attention from fostering business growth.
Fingercheck solution: Embrace automated time tracking systems to free up precious hours for your business and reduce payroll mistakes. Solutions like our hourly Time Tracking and time clock software improve accuracy and allow small businesses to refocus on strategic aspects of business development.
Varda Chocolatier eliminates payroll delays and increases efficiency.
#2 Tax complexities: tax-related headaches and growth stagnation
The complexity of tax regulations becomes a significant stumbling block, consuming owners’ time that could be better spent on business strategy.
IRS statistics highlight that tax-related errors and payroll mistakes result in penalties for 33% of businesses annually, diverting focus from growth initiatives.
Fingercheck solution: Opt for payroll software that automates tax calculations, alleviating the burden on yourself. We also ensure compliance support, offer automatic tax filing and provide your accountants or bookkeepers with their portal to manage your business throughout year-end prep and tax season.
#3 Record-keeping burden: the overwhelming time sink
Managing accurate payroll records is crucial but very time-intensive.
SCORE’s survey found that 38% of small business owners spend over 80 hours annually on payroll tasks, redirecting their attention from strategic growth endeavors.
Fingercheck solution: Our automated payroll solution encompasses Time Tracking, Scheduling, and Hiring/Onboarding. From employment to retirement, we securely manage all employee and business information within our platform. Oh, and by the way, we are proud to be SOC 2 compliant. What does that mean for you? With our all-inclusive platform, tasks like record-keeping are automated, sparing you the need to synchronize employee hours or information with your payroll provider manually.
#4 Employee classification concerns: the human element dilemma
The nuanced challenge of correctly classifying workers adds another layer of complexity, distracting owners from fostering the human connection within their business.
The Department of Labor reports that misclassification can result in penalties for 10-30% of small businesses, hampering owners’ ability to focus on employee relationships.
Fingercheck solution: Our People Management solution was built to simplify HR for individuals who need more HR experience or time. With an intuitive interface, automated processes, customizable templates, compliance support, centralized data management, employee self-service tools, and expert support, Fingercheck empowers you to handle HR tasks efficiently. Ensuring your business stays organized and compliant without needing a deep HR background.
#5 Human error risks: impact on business harmony and focus
Manual payroll processes expose businesses to the risk of human errors, affecting financial accuracy and diverting owners from building harmonious workplaces.
The American Institute of Professional Bookkeepers notes that 90% of businesses face common payroll mistakes, underscoring the toll on the human element.
Fingercheck solution: Our payroll software automates payroll tasks, reducing errors and saving time. It can account for and automate tax calculations, generate reports, and streamline your entire payroll management. TLDR – payroll is highly complicated, and payroll software removes this burden from small business owners.
Discover how Fingercheck can save your business time and money
Beyond the operational challenges, the human element of running a small business takes center stage when grappling with payroll hurdles.
By embracing automated solutions, owners can reclaim time for nurturing their businesses, fostering employee relationships, and concentrating on the human side of growth.
It’s not just about overcoming challenges; it’s about reinvigorating the heart of your business. Let the human element thrive, and watch your small business flourish!