Ready to prevent payroll and payment pitfalls from the start?
When it comes to payroll there can be many pitfalls in regards to outsourcing versus in house. With
Let’s dive into 3 Payroll Pitfalls
Payroll Pitfall #1 - Control
When looking at new systems it’s important to have flexibility and control because:
- Each business is unique. Your payroll needs are unique, too.
- Payroll must be managed in a way that reflects your distinct culture.
- There should be no blind spots. No workarounds. No kidding.
You want a payroll platform that adheres to your business processes not the other way around. Bringing payroll in house gives you that control and access to all of the data.
It’s also important to have 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:
- Reduced reliance on manual processes or handling a subset of employees outside of the system and your company.
- Corrective check runs, spot bonuses, etc. can be handled immediately.
Doing this sends a strong and positive message to your workforce. It also reinforces that you make accurate, complete, and timely payroll processing a priority for your employees.
Payroll Pitfall #2 - Finances
In house payroll means not giving money to outsourced providers. The pay run is done right out of your account.
- In an outsourced model, your payroll funds cover the provider’s float.
- Keep payroll funds in your own account for as long as you like.
- Maximize cash flow to benefit your business, not the payroll provider.
Unlock more strategic use of funds and have more control of your finances.
- Better financial control creates new opportunities to leverage those funds to enhance the employee experience.
- Fund availability + ad-hoc reporting empowers you to run “what if” scenarios, calculate and distribute spot bonuses, etc.
This way you can support employee retention and overall business performance improvements.
Payroll Pitfall #3 – Flexibility
A Payroll solution that is ERP agnostic means it will push back the data to your GL in any ERP you’re using. Payroll and HR processes are synced across the board.
This means Payroll can run at the speed of your business.
- Simple and straightforward integration with any HR or Finance system means payroll will NEVER be a barrier to progress.
- If business needs, require a change in your HR or Finance technology stack, you can make changes with minimal disruption.
- Process changes and enhancements can be made immediately.
Keep track of certifications, important documents, and records.
- Self-service tools simplify onboarding, streamline approvals, and allows HR pros to focus on more strategic issues.
- Advanced add-on services – such as certification & vaccination tracking, payment card services, and others – enhances employee satisfaction.
Leverage a platform that delivers benefits to payroll, HR, finance, and most of all, employees.
Who is Greenshades?
Since 2002, Greenshades has been providing exceptional automated payroll tax reporting, employee engagement, and comprehensive compliance solutions to mid-sized employers across North America. Today, through Greenshades cloud-based Payroll, Tax & HR Platform, your organization is enabled on a whole new level.
You’ve just read about all the payroll pitfalls so what about payment pitfalls.
Avoid Payment Pitfalls
A company's cash flow needs real time visibility and control. If you aren't prepared to deal with unforeseen expenses, one financial emergency could set off 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 the payment pitfalls, the faster you make cash. You may feel secure looking at your invoice numbers because you have a large number of receivable payments due in the next few weeks. Sending bills to clients, on the other hand, is not the same as receiving payment. Change the way your cash pipeline is arranged to try to avoid payment delays.
The 4 very common pitfalls include high overheads, slow time-to-cash, inflexible payment options, and fraud risk.
High overheads include lockboxes, manual matching, and bank fees, among other things, are some of the major pitfalls that a business owner should look out for.
Slow time-to-cash, which essentially means an uptick in DSO and a negative effect on cash flow. A lengthier or more complicated cash conversion cycle (time-to-cash) signifies that the company takes longer to earn cash. Small businesses may have operational issues as a result of these delays, which constitute a danger of liquidity.
Organizations often consider payment to be just another consumer touchpoint, but technological advancements have proven that digital payments provide a plethora of chances for businesses to expand faster and more efficiently.
Customer retention and loyalty are enhanced by providing an exceptional customer experience. Having multiple payment options including self-service portals and support for digital payment methods make the payment process more convenient and that is all a customer wants.
Customer experience is key and we’re seeing a big jump in overall experience when solutions are in place.
The regulatory environment is changing all the time and companies can’t really keep up. Trusting providers who have a unique focus on regulatory issues is the key to ensuring ongoing compliance and reducing the likelihood of fraud.
The impact of Fraud Risk has resulted in increased bad debts and revenue leakages, as a result working capital suffers. All of the aforementioned also results in a negative client experience.
How do you overcome these common payment pitfalls? You modernize B2B payments and collections.
These means finance leaders need to look at:
- Enabling Faster e-Payments and provide a Self-Service Portal
- Leverage Digital Payments to reduce processing overheads
- Inspire Loyalty through customer centric buyer experience
- Mitigate Risk with secure and payment processing
Who is HighRadius?
HighRadius offers cloud-based Autonomous Software for the Office of the CFO. More than 700 of the world’s leading companies have transformed their order to cash, treasury and record to report processes with HighRadius. Our customers include 3M, Unilever, Anheuser-Busch InBev, Sanofi, Kellogg Company, Danone, Hershey’s and many more.
Want to learn more? Check out the webinar recording,