Connect with us

Accounting

How To Minimize Payroll Cycles

Published

on

Let’s admit that many of us who run small private companies still proceed with the payroll function in house. Nothing is wrong with that; when you have some bright staffs available to handle the task and do some more tasks, that is an efficiency!

But, in-house payroll processing becomes a great time consuming when many different payment cycles are existed in one company. Consider if only two time cycles are exist: one group of employee are paid on weekly basis and the group is paid on monthly basis. It means the accounting staffs have to prepare five times of payroll in a month (4x for weekly basis + once for monthly basis). How if there are also another group paid on biweekly basis? Do you still see efficiency? I doubt it.

Advertisement

Now, how if you can make it once a month—monthly payment? It is a real efficiency for sure. If you plan to do so, discuss it with the other part of the company’s management to make sure there is no significant refusal from the employee. You may not be able to get exactly as what you want, but you can reduce the payroll cycles gradually.




Are you looking for easy accounting tutorial? Established since 2007, Accounting-Financial-Tax.com hosts more than 1300 articles (still growing), and has helped millions accounting student, teacher, junior accountants and small business owners, worldwide.

Trending