Jasz
VIP Contributor
This is a huge challenge for many small businesses, and it's one of the most important tasks you have. Here are six steps to make sure you're paying your employees and contractors every time, every week.
1. Make sure your staff receives their time sheets in advance of payday.
2. Collect all time sheets before payday, get them into your payroll system, and approve them immediately.
3. Make sure you have the money you need at least one day before payday.
4. If you don't, give your bank a heads-up that you need to transfer money from another account or use a line of credit to meet payroll needs.
5. Don't wait until the last minute; schedule payments so they are sent directly from your bank account or line of credit on Friday morning at 9:00 AM (or whatever time works best for your company). This way no one has to manually process payments (and possibly forget) every week. It also prevents you from falling behind on payments if an employee calls out sick or takes a vacation day unexpectedly—so there's no scramble to meet payroll needs when something comes up like that.
6. Set up alerts with your bank so they'll notify you if there isn't enough money in the company's account.
1. Make sure your staff receives their time sheets in advance of payday.
2. Collect all time sheets before payday, get them into your payroll system, and approve them immediately.
3. Make sure you have the money you need at least one day before payday.
4. If you don't, give your bank a heads-up that you need to transfer money from another account or use a line of credit to meet payroll needs.
5. Don't wait until the last minute; schedule payments so they are sent directly from your bank account or line of credit on Friday morning at 9:00 AM (or whatever time works best for your company). This way no one has to manually process payments (and possibly forget) every week. It also prevents you from falling behind on payments if an employee calls out sick or takes a vacation day unexpectedly—so there's no scramble to meet payroll needs when something comes up like that.
6. Set up alerts with your bank so they'll notify you if there isn't enough money in the company's account.
Last edited:
