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15 May
Small Business vs Big Business – Understanding Your Payroll
Each of these factors needs to be taken into account when approaching important functions such as payroll.
When it comes to HR and financing, big businesses have typically maintained an in-house staffing team to handle services like accounting and payroll management.
On the other hand, it has always been more sensible for small businesses to use a simple payroll software system.
Payroll for Big Businesses
But choosing the right payroll solution isn’t always so black and white. Below we explore the attributes small and big businesses should look for in their payroll solution.
Payroll for Small Business
What a small business needs from their payroll solution will depend largely on what type of business it is and whether it is in the process of growth.
Key features that are typically important for small business payroll include:
- Accuracy - For small businesses, accuracy and precision are of the utmost importance. Large corporations can often recover from significant financial errors. Small businesses, on the other hand, can feel the full impact of even the smallest financial mistakes.
- Outsourcing - Once you get past 30 or 40 employees, it’s a good idea for small businesses to look at outsourcing rather than handling payroll internally. Managing payroll gets increasingly difficult as the number of people you’re responsible for rises or if you use a number of casual or contract workers.
- Scalability - Some payroll providers specialise in small business while others specialise in big business. Outsourcing your payroll to a provider who works with businesses of all sizes generally means your service can be scalable, allowing you retain the same experts regardless of internal changes in your business.
- Cost - An affordable payroll solution is generally more important for small businesses. Outsourcing can offer cost savings by reducing the number of employees and the amount of IT infrastructure.
- Security - Online and digital security is complex and costly. Unlike big businesses, small businesses can’t afford to have the same calibre of security systems in place. By choosing a payroll provider with robust security systems, small businesses can more effectively secure sensitive data.
The attributes listed above are also important to big businesses. But some features are particularly important for big businesses, including:
- Compliance - Larger businesses are generally under more scrutiny and are audited more often, making 100 per cent compliance essential. Look for a payroll provider that immerses themselves in the payroll regulations of every state and territory in Australia and also offer internal auditing services.
- Strong track record - The bigger the business, the higher the stakes can often be. To ensure your company’s payroll is processed accurately, compliantly and on time, look for a provider with an established track record.
- Employee self-service - Unlike many smaller businesses, large companies don’t have the time to chase up payroll enquiries on behalf of the employee. They should be able to view information or contact the payroll provider themselves.
Aussiepay is Australia’s largest owned and operated payroll provider, with more than 24 years of experience. We pride ourselves on our ability to offer a consistently effective service regardless of your business size and structure.
If you’d like to talk about how we can help you with your payroll, get in touch today by calling 1800 729 765