Monthly Archives: January 2011

Is Payroll Software Required?

By | Payroll | One Comment

For many new business owners, managing employee payrolls presents a number of questions. Even experienced professionals wonder whether they should invest in payroll software or if they’ll just be able to get by taking care of everything on their own. While payroll software may not be a written requirement for business management, the advantages of a good payroll program are so numerous that it’d be foolish not to consider getting one. Here are some of the top reasons why.

Payment Integration

While you’re probably aware that payroll software prints checks, it does a lot more than that, including pay stub generation and third party payroll service reporting and communication. There are other payments you need to make besides employee checks, and payroll software can help with monthly bills, franchise fees and supply purchases. Like outsourced payroll services, your payroll software can print valid bank-ready checks so your employees and creditors needn’t wait for their money. Without payroll software, you would be forced to manually take care of all the details every pay period, and though small business owners may not mind this, it can severely limit expansion.

Taxes

Do you have an tax consultant who will tell you what tax percentages will be applicable for every employee? If not, payroll software is a good idea. Most packages allow you to store individual data for a large number of employees, so that you can automatically calculate how much you must withhold at each pay period. Income Tax, Provident Fund, ESI, Professional Tax, Medicare and special state taxes are easy to configure. This also includes employer programs like retirement and health care plans, making it easier to manage everything all at once. At tax time, Form 16 are easy to generate, and if you ever have the misfortune to get audited, you’ll be glad to know you can simply transfer all your software records to the tax agent.

Analysis

Payroll programs can be used to generate automatic reports that depict the status of your professional finances. Because such software is made for frequent use, it may allow you to send reports in any number of file formats or via email. For a business owner who wants to track their internal progress, this accounting aid is essential to getting a quick, on-demand glimpse at the big picture.

Even though payroll software isn’t an outright requirement, the fact that you have some automated method of payroll preparation and management will totally change the way your business operates. Without payroll software packages, you and your accountants will be stretched thin regardless of what time of month it is, because you’ll be forced to stay ahead just to compute taxes, account for overtime and include new employee deductions. When you run a company that needs to maintain a competitive front, not having a payroll software package to take care of the financial end is completely unacceptable.

Employees Recruitment Techniques

By | Human Resource | One Comment

Finding the right employees for your business is critical to maintaining quality and productivity. Hiring the right employee saves your business money, reduces turnover, and reduces the time and money you need for future recruiting efforts. By using effective employment recruitment techniques, you can increase the number of appropriate applicants to fill positions in your company.

Advertising

A classic employment recruitment technique is the “help wanted” advertisement in your local newspaper. While you can still utilize this form of recruitment, an online ad can be more cost-effective and reach a broader audience. Ads placed on job websites or on your business website can draw potential employees from a wider geographic area. For targeted recruitment, you can place ads on industry specific job boards.

Career Fairs

For entry-level jobs, career fairs can help you recruit recent graduates and individuals who want to change careers. Some colleges and universities sponsor on-campus career fairs that can help you recruit well-educated employees for your business. Job fairs also provide an easy way to collect resumes to help fill future vacancies.

Database

Maintain a database or filing system for potential employees based on resumes collected at career fairs, from your website or from manual submissions. When looking to fill a vacancy, review your file of resumes for potential applicants and send queries to possible candidates. This recruitment method can help fill vacancies faster at a lower overall cost than starting a fresh recruiting effort.

Employment Agencies

If you are searching for employees with specific skills, you may want to work with a recruiting agency that screens and potentially tests applicants based on the skills you require. While the initial cost of utilizing an employment agency may be high, the long-term reward of a well-placed, highly capable employee can be greater than the initial recruitment cost.

Internal Recruiting

Internal recruiting is an effective method of filling vacancies. Existing employees have an established track record that can be matched to a current vacancy. Even if the employee needs some additional training to fulfill all the position requirements, companies gain valuable employee relation benefits by hiring from within. Promoted employees may demand lower compensation than those hired from external sources; in addition, you decrease turnover by providing advancement opportunities.

Employee Referrals

Your existing employees can be a great source of providing recruitment referrals. They may know of a good match for a vacancy that would not respond to more traditional recruitment methods. Many potential employees are working for other companies and are not actively looking for employment, but may be enticed to change employment for the right opportunity. You should encourage employee referrals by providing bonuses for all new hires employed based on a referral.

Please share which one works for you.