An important task for every business is the payment of staff, particularly for the staff!
Remember the days of being paid in cash or by cheque? For most of us those days have long passed. For those business owners who may still pay their staff this way, you can save time and money by paying your staff electronically.
Most financial institutions have at least one payroll or electronic payments service. Choose the service that suits the size of your business and present payroll system. Shop around because the service is free at some financial institutions, making it a good alternative to paying a payroll company for some businesses.
For most businesses, the financial institution’s payroll service will be as easy as making one internet banking transaction. You can deposit wages into accounts held at just about every financial institution, not just the institution with which your business banks. The service should allow details from accounting software packages to easily be imported into internet banking. You simply create a batch using templates provided. Once you have set it up, and provided there are no variations, it can be as easy as reviewing and pressing a button. As the payroll is processed directly from your account, you are always assured you have the funds to meet the payments.
Another advantage of internet banking payroll is that it can be accessed any time. So for busy small business owners, payroll can be a task for after the doors have closed. It is also secure but convenient. If there are two people required to sign off on an account, your financial institution should be able to provide remote access for authorisation.
Electronic payroll is another example of the time saving benefits brought by the internet. We all know that in business, time is money. We also know staff that are paid on time are happy staff.
Greg Taylor is Chief Financial Officer for the Hunter-based Greater Building Society
This article appeared in the Newcastle Post April 11 2012