Are you ready to prevent payroll and payment pitfalls from the start?
When it comes to payroll, there can be many pitfalls regarding outsourcing versus outsourcing. with
Let’s dive into 3 payroll pitfalls
Falling into Payroll #1 – Control
When looking at new systems, it is important to have flexibility and control for the following reasons:
- Every business is unique. Your payroll needs are unique, too.
- Payroll should be managed in a way that reflects your distinct culture.
- There should be no blind spots. There are no solutions. Not kidding.
You want a payroll platform that sticks to your business processes and not the other way around. Bringing this payroll at home gives you control and access to all data.
It’s also important to keep your employees in mind when looking at or implementing new payroll and HR systems. It should not only benefit you, but them as well. You can do this by:
- Reduce reliance on manual processes or deal with a subset of employees outside the system and your company.
- Corrective checks, spot bonuses, etc. can be dealt with on the spot.
Doing so sends a strong, positive message to your workforce. It also enhances that you are making accurate, complete and timely payroll processing a priority for your employees.
Falling into Payroll #2 – Finance
In-home payroll means no money is given to outside providers. Payment is processed directly from your account.
- In the outsourcing model, your payroll money covers the float of the provider.
- Keep the payroll funds in your own account for as long as you like.
- Maximize cash flow for your business, not the payroll provider.
Unleash a more strategic use of funds and take greater control of your money.
- Better financial control creates new opportunities to utilize this money to enhance employee experience.
- Availability of funds + custom reporting allows you to run “what if” scenarios, calculate and distribute instant rewards, etc.
This way you can support employee retention and improve overall business performance.
Falling into Payroll #3 – Flexibility
An inappropriate ERP payroll solution means that it will return data to your GL in whatever ERP you use. Payroll and HR processes are synchronized across the board.
This means that payroll can run at the speed of your business.
- Simple and straightforward integration with any HR or financial system means payroll will never be a barrier to progress.
- If business needs require a change in your human resources or fintech group, you can make changes with minimal disruption.
- Process changes and improvements can be made immediately.
Keep track of certificates, important documents, and records.
- Self-service tools simplify the setup process, streamline approvals, and allow HR professionals to focus on more strategic issues.
- Additional advanced services – such as certificates, vaccination tracking, payment card services, and more – enhance employee satisfaction.
Take advantage of a platform that offers benefits for payroll, human resources, finance, and most of all, employees.
Who is Greenshades?
Since 2002, Greenshades has been providing exceptional automated tax reporting, employee engagement, and comprehensive compliance solutions to mid-sized employers across North America. Today, with Greenshades’ cloud-based payroll, tax, and HR system, your organization is empowered on a whole new level.
I just read about all the drawbacks of payroll, so what about the pay pitfalls.
Avoid payment pitfalls
A company’s cash flow needs real-time visibility and control. If you’re not prepared to deal with unexpected expenses, a financial emergency can trigger a chain reaction of payment issues. The worst thing you can do is put off thinking about cash flow management until you need it.
As they say, time is money. The faster you analyze payment risk, the faster you can make money. You may feel safe looking at your billing numbers because you have a large number of payments receivable in the next few weeks. On the other hand, sending invoices to customers is different from receiving payments. Change the way your cash pipeline is arranged to try to avoid payment delays.
The four very common pitfalls include high overhead, slow time to cash, inflexible payment options, and fraud risk.
Predicament No. 1
High overheads include insurance funds, manual matching, and bank fees, among others, some of the major pitfalls a business owner should look out for.
Predicament No. 2
Slow cash flow time, which basically means a slight increase in DSO and a negative impact on cash flow. A longer or more complex cash conversion cycle (time to cash) indicates that the company takes longer to earn cash. Small businesses may encounter operational issues as a result of these delays, which poses a liquidity risk.
Payment organizations are often considered just another point of contact for consumers, but technological advances have proven that digital payments provide a plethora of opportunities for businesses to expand faster and more efficiently.
Predicament No. 3
Customer retention and loyalty are enhanced by providing an exceptional customer experience. Having multiple payment options including self-service gateways and support for digital payment methods makes the payment process more convenient and that’s all the customer wants.
Customer experience is key and we are seeing a huge leap in overall experience when solutions are in place.
Predicament No. 4
The regulatory environment changes all the time and companies can’t really keep up. Trust providers who are uniquely focused on regulatory issues are key to ensuring ongoing compliance and minimizing the potential for fraud.
The impact of fraud risk has led to an increase in bad debts and revenue leakage, as a result of working capital suffering. All of the above also leads to a negative customer experience.
How do you overcome these common payment pitfalls? Updates B2B Payments and Collections.
This means that finance leaders need to take a look at:
- Enabling faster electronic payments and providing a self-service portal
- Take advantage of digital payments to reduce processing costs
- Inspiring loyalty through a customer-centric buyer experience
- Mitigating risks with secure payment processing
Which is Hi Radios?
Hi Radios Provides cloud-based self-software for the CFO’s office. More than 700 of the world’s leading companies have converted their requests to cash, treasury and registry to report operations Hi Radios. Our clients include 3M, Unilever, Anheuser-Busch InBev, Sanofi, The Kellogg Company, Danone, Hershey’s and many more.
Want to know more? Check the seminar recording,