There are quite a few responsibilities that come with running a small business, and more often than not, payroll can pose as the most complex. Accuracy is an integral part of each of your employees’ paychecks, and that isn’t math that you should be doing in your head. More than distributing paychecks and ensuring their accuracy, you also need to manage your business’s deductions, and benefits, and keep track of any of your payroll taxes.
That’s why today, we’re diving into what a small business payroll calculator is and how it can support you in your operations.
Let’s get started!
What is a Small Business Payroll Calculator?
A small business payroll calculator is a very handy online tool that is uniquely designed to deal with all of your payroll operations. This calculator will do all you need when it comes to taking into account the hours worked, pay rate, as well as any deductions or benefits, and then calculate your gross and net pay as needed.
Understand that there are more complex tools for larger-scale businesses, but there are still very helpful calculators that are specific to small businesses. Your small business calculator will mitigate the need for any manual calculations. Utilizing an automated system guarantees accuracy and peace of mind from being free of errors.
Benefits of Using a Small Business Payroll Calculator
Accuracy and Compliance
One of the major advantages of using a small business payroll calculator is the accuracy it delivers. It’s no secret that doing your calculations manually can make you more susceptible to errors. When you use a business payroll tool, you have the opportunity to mitigate these errors, which will help your employees receive their accurate wage amounts, and take care of any deductions and benefits.
Time-Saving
Manually calculating your payroll will pose a more time-consuming task than its automated counterpart. Your small business payroll calculator will help you streamline your payroll process and sort out your employee data within a few clicks.
Cost Efficiency
When you think about all of the errors that you are mitigating through the use of your small business payroll calculator, your mind should take you to the money that you will save in the long run. Payroll hiccups can be expensive, so your accuracy is an integral part of the process–especially if you want to mitigate the need for additional payroll staff.
Enhanced Financial Planning
More often than not, small business payroll calculators include reporting faculties, which ultimately, help you generate payroll reports over time. Since it’s important that you keep your reports anyway, this extra layer of efficiency will give you a more clear and accurate perspective of your payroll expenses.
Step-by-Step Guide to Using a Small Business Payroll Calculator
Things are simple when it comes to utilizing a small business payroll calculator, and with a little extra knowledge in your back pocket, you’ll be well on your way to a more streamlined payroll management. Here’s how:
Input Employee Data
First things first, you’ll want to start by inputting all of your employee information, including the hours worked, pay rate, and any other data relevant to the pay period. This info is the very core of the calculations for every check you cut.
Calculate Payroll
Once you’ve entered the data, crank your calculator up to see all of your employee’s base pay. Once you run it through, you should be able to see all of the employees’ gross payments, deductions, as well as their net pays. That said, this part is automated so that will decrease the time you spend on the task and increase the accuracy.
Generate Payroll Reports
We’ve mentioned how important it is to keep all of your records for at least 3 years. That said, your small business payroll calculator will help you generate reports every payroll period. These records will help you keep track of your expenses and stay organized and proactive over time.
If you’re not sure where to start, the Estess CPA team can guide you on your business payroll journey. Payroll is part of the very foundation of running a business, and we know how important it is to your daily operations. Small business payroll calculators totally streamline your payroll process and free more time to focus on other things. Click here to speak with the Estess CPA team and learn how we can support you today!
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