Employers have several options for paying employees: cash, checks, direct deposit, and payroll cards. It can be difficult to choose which to use since each payment method comes with its own benefits and drawbacks.

Direct Deposit

Direct deposit is the most common wage payment method in the U.S., especially for salaried employees. In fact, more than 93% of employees earn their pay this way, according to the Getting Paid in America survey. Because direct deposit is so popular, most payroll platforms include direct deposit features.

How does direct deposit work?

With this payment method, a direct deposit provider automatically transfers money from your business bank account to each employee’s bank account at the end of each pay period. You might be able to set up direct deposit through your bank, but most payroll software providers support direct deposit as well.

Pros of paying employees via direct deposit

Perhaps the biggest benefit of direct deposit is the convenience it offers both you and your employees. Everything is handled electronically, so there’s no paper to worry about. HR and accounting staff can spend their time doing more important things than running payroll manually, and employees get access to their money quickly and easily.

Direct deposit also offers a lot of flexibility while maintaining compliance with important payroll laws. For example, ADP’s Workforce Now allows you to have up to four direct deposit accounts and makes it easy to pay your workers — whether they are exempt, nonexempt, or international employees — via direct deposit. All transactions are recorded automatically, and any discrepancies can be addressed quickly and efficiently.

Cons of paying employees via direct deposit

On the downside, direct deposit won’t work for employees who don’t have bank accounts. You will need to provide another payment option for these employees, so it’s important to be prepared with at least one alternative method as a backup.

Cost is another factor to consider. There are per-transaction fees to use direct deposit as well as initial setup costs, depending on the provider. And if you need to speed up a transaction, you might have to pay a higher fee. In some cases, a payroll services provider might cover the fees, though there may be other expenses to consider with these providers.

Also read:  How to Choose the Right Small Business Payroll Software

Cash

Cash payroll is less common today than it was in the past, and it is often associated with paying workers without a paper trail. However, it is legal to pay workers a salary in cash if you follow the proper employment laws.

How does cash payroll work?

Though cash is perhaps the most straightforward option since it doesn’t require any waiting period or bank involvement, it takes the most manual effort of all the payment methods. Some accounting platforms and other resources offer free calculators that can simplify the math involved in calculating how much to pay each employee.

Calculate gross pay

The first step is to calculate gross pay, or how much you owe each employee before deductions. This requires an accurate record of each employee’s working time, with careful attention to any hours that may be considered overtime.

There are many other factors that may affect how much you owe one employee versus another, though overtime is the only one mandated by law. Depending on your employment contract, you may also need to account for unpaid time off, holiday pay, hazard pay, salaried versus hourly wages, and different pay rates among other factors.

Other factors to consider may include paid and unpaid time off, holiday pay, hazard pay, salaried versus hourly wages, and any other differences in pay rates from one employee to another.

Calculate net pay

Once the gross pay amount has been calculated for each employee, you must calculate the necessary taxes and other deductions. Tax withholdings include federal income tax, Medicare tax, Social Security tax, and state and local income taxes, if applicable. The exact tax rate depends on each employee’s W-4 filing as well as your business’s location.

Other deductions include insurance premiums, retirement contributions, wage garnishments, and union dues. Some of these deductions must be taken before taxes, but others should be included in the employees’ taxable income.

Any reimbursements owed for work-related expenses are considered nontaxable income and should therefore be added to the post-tax payment amount.

Distribute and document payment

Once you’ve calculated how much to pay each employee and organized the cash amounts, it’s essential to have each employee acknowledge when they’ve received their pay. This may look like a ledger that includes the payment amount, date, pay period, and a spot for each employee’s signature. Documentation like this may be important if an employee ever claims they weren’t paid for their work or disputes the amount.

Pros of paying employees via cash

Many businesses may choose to pay employees in cash because it’s more direct, especially for those that only accept cash payments from customers. Cash-only businesses don’t have to worry about learning new software or working with a bank to cut checks or process direct deposits. Cash payroll also avoids any fees associated with processing payments through a bank.

The straightforward approach to paying employees may be particularly appealing for businesses that are just starting out. Cash is the only payment method that any employee can accept, so you can run payroll without worrying about whether it will work for everyone.

Cons of paying employees via cash

The biggest drawback with paying employees in cash is the risk of miscalculations. Though payroll calculators can help with the math involved, the manual nature of cash payroll means there’s a larger margin of error. If you choose this payment method, you must be very familiar with payroll laws and how they apply to each of your employees. Even small errors with tax calculations or time tracking can have significant financial and legal implications.

Additionally, cash payments can make maintaining accurate records a bigger headache compared to other payroll methods. If you are ever audited, you will need to provide all employee pay records with clearly documented payments toward taxes and other deductions. Depending on your state, you may be required to provide your employees with paystubs, so they can see their net pay, gross pay, and deductions. Check payments, direct deposits, and payroll cards offer a more streamlined way to keep track of these records and produce copies if needed.

Also read: Is Doing Payroll By Hand Cheaper Than Using Software?

Check

Printed checks were the most common payroll method before digital banking gave rise to direct deposit. Although some financial experts disagree about whether paper checks will become totally obsolete in the near future, it’s a reliable payroll method that balances flexibility and efficiency.

How do payroll checks work?

Payroll checks work similarly to cash payments, except each check gets routed through your business bank account. This means checks are generally easier to prepare than cash payments, too. Rather than counting out the exact amount of dollars and cents you owe to each employee, you can write or print checks that they can then cash or deposit.

Handwriting checks takes time, but it can be a good option for a small business with few employees. Printing checks is a faster option, but it requires special equipment and supplies that can get expensive. You can use check stock that is pre-printed with your banking information or you can use blank check stock and a MICR printer that uses magnetic ink.

Some payroll software providers like Quickbooks support paper checks, which means you can get the convenience of automatic payroll calculations while still maintaining control over how you distribute payments to employees. Alternatively, some payroll software integrates with check printing services like Printech.

Pros of paying employees via check

Many businesses that still pay employees via paper checks do so because it’s familiar to them. They have a solution that gets the job done, and moving to a digital payroll method isn’t worth the hassle of learning a new process. As direct deposit becomes more accessible and affordable, however, it may become difficult to justify the extra expense.

Some businesses prefer to pay their employees with paper checks because employees don’t need a bank account to get their money from a check. They can use a check cashing service for a small fee that’s typically less than the cost of opening and maintaining a checking account.

Similarly, payroll checks are a compelling choice for employers that want to maintain a privacy boundary with their employees. Whereas direct deposit requires employees to provide their bank account and routing numbers, paying with paper checks allows employees to remain in control of their personal information.

Cons of paying employees via check

Paper checks are losing popularity among employers because they take more manual effort and time to process than electronic payroll methods. Not only does it take longer to print and distribute checks than it does to process a direct deposit, but check deposits also take longer to clear. This means employees could be waiting several days to get access to their available funds, especially if payday falls on a bank holiday or weekend.

Additionally, it’s possible that employee checks might become lost or get stolen. If this happens, you will have to void the check and issue a new check to the employee. This incurs an additional expense and requires more administrative work to correct payment records.

Also read: 5 Costly Payroll Mistakes Small- and Medium-Sized Businesses Should Avoid

Payroll Cards

Also known as paycards, payroll cards are prepaid cards that are directly managed by your payroll software provider. They offer

How do payroll cards work?

Payroll cards function similarly to debit cards, except instead of a bank, the account is managed by a payroll software provider or a payment processor such as Visa or Mastercard.

The employee can use their paycard to make purchases, pay bills, and withdraw money from an ATM, just like they would use a debit card. Because it’s not a true bank account, though, an employee can access their funds immediately without waiting for the deposit to clear.

Pros of paying employees via payroll cards

Payroll cards are a convenient solution for employees that don’t have a bank account. They offer all of the flexibility and speed of paying employees in cash, but with the convenience and accuracy of digital payroll processing.

What’s more, some payroll card providers like Gusto offer unique tools not found with traditional checking accounts. For example, the Gusto Wallet app includes embedded features for time tracking that make it easy to verify an employee is being paid accurately for the time they worked.

Cons of paying employees via payroll cards

Payroll cards have become more popular in recent years as an alternative to direct deposit, and they’ve become more heavily regulated as a result. This may make payroll cards more difficult to use than they are worth.

Because payroll cards aren’t managed by banks, it may take longer to replace them if they are lost or stolen. Debit cardholders can withdraw cash from their bank accounts at any time by visiting a local branch if their card is stolen, but payroll cardholders may not have any way to access their funds without their physical card in hand.

Additionally, you and your employees might face fees with payroll cards. You might have to pay setup fees and recurring maintenance fees, and your workers might have to pay fees to get their money off the cards.

Understanding Payment Laws

Before choosing a payroll method, you should consult your state laws on the payment type and familiarize yourself with relevant federal laws such as the Fair Labor Standards Act. Many states have paycard laws that dictate how the cards can work, and employers can’t make direct deposit mandatory for their employees in every state. It’s best to take time to review the laws to prevent any mistakes and penalties.

Because payroll software has been developed in compliance with state and federal laws, having a payroll solution in place can give you peace of mind when it comes to paying your employees. Whether you need to track hours worked and holiday pay for an hourly employee, log paid time off and employee benefits for a salaried employee, or pay foreign employees in local currency, there’s a payroll software that can help with it. Check out our Product Selection Tool to speak with an advisor who can help you find the right payroll software for your needs.

Top Payroll Software Recommendations

The post What Are the Best Methods for Paying Employees? appeared first on TechnologyAdvice.

Hyperautomation, the next iteration of automation that speeds up data ingestion, sorting, and use of data, promises to speed financial processes — and it can be done without huge investments of time, technology, or money.

What is hyperautomation?

Hyperautomation is the set of strategies and software companies use to automate manual processes. The goal of hyperautomation is to eventually have the automation systems begin to discover and integrate new automation processes without human intervention. 

By adding artificial intelligence (AI) algorithms to robotic process automation (RPA) systems, a company can eventually begin to automate the automation of processes, ultimately building the systems so that the automation then automates more automations.

How can hyperautomation be used for business finance?

Finance systems have long been ripe for less manual work and more automation. Invoices, RFPs, purchase orders, payroll, and timekeeping are all highly manual processes that haven’t received much in the way of innovative software these last few years.

Optical character recognition (OCR) capabilities have been among the biggest automation tools, but these require invoices to meet formatting standards that can complicate and lengthen the process. Payroll and timekeeping have benefited from advances in HR tools, biometric clock-ins, and even geolocation via GPS or RF tagging. 

All of these tools that have brought HR and accounting processes into the 21st century have also begun to produce an outsized amount of data, of which companies are only using a fraction to perform the most basic processes. Hyperautomation can use the power of algorithms that build upon themselves to make use of more of this data to give companies a more precise picture of their financials with less direct oversight by accounting and human resources professionals.

Read Also: Top BI Tools for Predictive & Data Analytics

Successful hyperautomation starts small

Just like any successful software initiative, companies should consider how their current systems and processes can get them started before diving in to purchase new products. Many inventive and forward-thinking technology initiatives have crumbled under the weight of finding the right software. Instead, Ben Richmond, U.S. country manager at Xero suggests understanding how your current cloud software as a service (SaaS) solutions can help you automate processes. 

Richmond says, “Cloud accounting software also allows users to create automated day-to-day financial tasks, as well as gain access to automatic bank feeds that can provide important financial metrics each day, giving the business owner a better idea of exactly how much cash is coming in and going out each day, week, month.” 

He also points out that cloud accounting software like Xero directly integrates with other business tools, which helps the accounting, sales, and admin teams communicate critical data without much manual labor.

Hyperautomation requires change management

While your team can start small with the tools they have, hyperautomation is meant to be a long-term process that builds and improves upon itself. Implementing a hyperautomation program in the finance department should, therefore, be approached with a change management mindset that helps get the most out of people and data. 

According to Kyle Tuberson, CTO of global consultancy firm ICF, “Companies should first establish the key objectives and outcomes they want to achieve. This could be increasing revenue, reducing operation costs, ensuring compliance or better CX [customer experience], etc.” 

Establishing one or two primary goals of the project will help the department focus the efforts and reduce the urge to chase exciting possible side-projects in favor of achieving the minimal viable product (MVP) of the project.

Once those objectives have been set, Tuberson goes on, the company can identify how they will implement hyperautomation to reach those goals: “APIs for integration, orchestration and choreography, decision automation, document ingestion, UI creation, and conversational capabilities” are possible options. 

“From here, companies should select technology that will achieve these key capabilities. This could be robotic process automation (RPA), business process automation (BPA), low-code app platform (LCAP), conversational AI, etc.”

As with any departmental or company-wide change, Tuberson suggests building a pilot, iterating on the design and implementation at a small stage, and rolling out to the entire company when many of the kinks have been ironed out of the design.

Also Read: Here Are 6 Change Management Tools That Every Project Manager Needs In Their Life

Potential complications — and solutions — of hyperautomation

For most companies, the promise of hyperautomation is overshadowed by the perceived complications of legacy systems, databases, and software with siloed information and messy data. This is especially true for companies who have acquired unfamiliar legacy data and need to integrate it into their financial system to get a complete picture of the tools.

The director of product management for RPA at ServiceNow, Kushang Moorthy, points out that the perceived complications of a patchwork of legacy systems and processes is ripe for the use of hyperautomation to fix.

Moorthy says, “Many of the systems financial teams deal with aren’t equipped with modern APIs, but we don’t necessarily need to fully change or replace legacy systems. We need to focus on automating mundane tasks and providing ways for finance teams to conduct integrated work across systems, leveraging tools like intelligent document processing, virtual agents, iPaaS, process optimization, machine learning analytics, low/no-code development, RPA, and more, which ultimately, when communicating and working together, results in hyperautomation.”

Hyperautomation is built through the layering of automations. When companies first implement RPA, it’s a low-level task that can make an incremental change to the processes of the finance department. But add low-code apps to that, and the benefits of automation begin to compound. 

“This is the true benefit of hyperautomation,” say Moorthy “It illuminates new possibilities for linking automation technologies together for an end-to-end view of processes, while applying the right tool for the business need.”

Read Next: Robotic Process Automation Evolves into Intelligent Automation

The post Hyperautomation Makes Innovation Fast for Finance Departments appeared first on TechnologyAdvice.

The nature of small business — where every employee fills multiple roles to keep the business moving — means that the software should strive to give business owners a tool they can learn easily and master quickly while not sacrificing more advanced features that ensure tax and regulatory compliance. Luckily, both Wave and Intuit QuickBooks are designed in this way. This article will break down the major differences for Wave vs. QuickBooks small business accounting software.

Also Read: 8 Reasons Accounting Software Isn’t Just for Big Business

Wave vs. QuickBooks is your standard up-and-comer vs. industry-standard software matchup. Both offer accounting software in the cloud, accessibility to major features through mobile apps, collaboration and user permissions for outside stakeholders, financial analytics, tax tracking, tax reporting, and helpful extras like receipt uploads via mobile phone.

In keeping with the general feature trends of financial apps, both Wave and QuickBooks connect directly to your bank accounts and credit cards to automatically import transactions, but the list of connections to outside financial tools like Square, PayPal, and ApplePay vary between Wave vs. QuickBooks. Both tools support regional tax rates and regulations like VAT, and both run as double-entry accounting ledgers suitable for professional accounting services.

Let’s look at some of the ways that Wave vs. QuickBooks differ. To look at a variety of accounting software that will meet your business’s needs, check out our Accounting Software Product Selection Tool.

Table of contents

• Wave vs. QuickBooks: a side-by-side comparison
• Accounting
• Invoicing & payments
• Payroll
• Collaboration
• Reporting
• Experience vs. innovation
• Wave vs. QuickBooks: SMB accounting options

Wave vs. QuickBooks: a side-by-side comparison

CORE FEATURES
Mobile App	No	Yes
24/7 Live Support	No	Yes
Free Plan	Yes	No
Paid Payroll Option	Yes	Yes
Receipt Scanning	Yes	Yes

Accounting

Both Wave and QuickBooks are set up for professional-grade accounting with double-entry ledgers, connections to your bank and credit card accounts, and the ability to build budgets. They also both offer support for multi-currency accounts, so local businesses with complicated currency situations or online shops can still use the tools.

The majority of the bookkeeping you’ll do in Wave will be categorizing your transactions so you can report on them later for budgeting and tax records. All of that is done from the home screen, where you’ll see transaction information plus filters to categorize your entry. Wave pulls this information from your connected financial accounts. For security reasons, Wave has a read-only connection to your accounts: you can’t use Wave to move money into or out of those accounts.

The QuickBooks home dashboard is more focused on reporting the status of your accounts, including giving you views for profit and loss, expenses, and overviews of your account balances. You’ll still need to connect to your accounts, import your transactions, and categorize your accounts like in Wave, but QuickBooks tries to do a lot of this work for you by guessing the type of transaction and learning from previous categorizations.

Invoicing & Payments

“Start a business,” they said; “It’ll be fun,” they said. They forgot to mention that you’d spend a major portion of your time writing up invoices and chasing down payments. Both Wave and QuickBooks help ease this time-suck with invoicing and payments features. Invoicing is totally free for both systems, but they both charge to be your third-party payment processor for credit cards.

There is a difference in the variable rates you’ll pay for Wave vs. QuickBooks credit card processing, but they’re both lower than what you would pay if you contracted directly with the credit card companies, and you have the advantage that the payments move directly into your accounting program. QuickBooks gives you free ACH (bank draft) payments while Wave charges you 1 percent for these.

Wave’s invoicing and payments system includes a lot of automatic features for categorizing your outstanding accounts and reminding customers to pay you. Choose from three invoice templates, or customize your own to align with your branding. Wave also offers automatic recurring billing so you can ensure that you get paid by ongoing customers every month/week/quarter. You can even issue full customer statements to show how your relationship has grown.

The QuickBooks invoices let customers choose from lots of payment options including ApplePay, Square, and credit cards, and customers can pay directly in the invoice. They also put link tracking on invoices so you automatically get a notification when a customer views or pays the invoice. Once paid, QuickBooks will automatically match the payments to invoices, cutting out a lot of time you would otherwise spend figuring out which invoices are paid and which are outstanding. This smart technology even extends to those who choose to pay incrementally: QuickBooks will match partial payments and show an outstanding balance.

Payroll

As soon as a small business grows to two employees, you’ll need to figure out some sort of payroll system to keep them around. Because payroll is complicated by tax and regulatory issues, it can be a bear to tackle. That’s why most small business accounting software companies will charge an extra fee to manage payroll. Wave and QuickBooks are no exception. All of the features in this section come at an extra fee on top of general accounting and invoicing.

Wave has a near-automatic payroll system with quick approvals, an employee self-service portal for stubs and banking information, direct deposits, and special settings to provide employees with benefits and vacations. Some helpful features that Wave also offers are automatic tax filings for 6 states and seasonal-work-friendly labor pauses at no charge. Wave charges a base monthly fee plus a charge for every active employee.

QuickBooks offers two levels of payroll: Enhanced and Full Service. The Enhanced integration doesn’t seem nearly as smooth as with Wave, as you’ll have to import or manually enter hours from your time tracking software for every pay period. However, tax filing is easy, as QuickBooks will automatically generate your tax forms and you can use eFile and ePay from within the app. QuickBooks also gives you unlimited payroll, which means you can run it as many times a month as you need with no extra cost. If you’ve got more money than time, sign up instead for the Full Service and get QuickBooks to handle the process for you.

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Collaboration

Because the small business owner is likely an expert on their product rather than an expert in accounting, they often have to call in the professionals to oversee the books and ensure compliance with tax laws and regulatory authorities. You’ll find that both Wave and QuickBooks offer the ability to invite collaborators to view your accounts, but with a few differences.

In Wave, you’ll need to add your collaborator to every account you want them to see. This safety feature means you can pick and choose who sees which business or personal accounts. Once added, they can receive notifications for updated records and files you share with them. Collaborators can have view, edit, and send permissions, but don’t worry, collaborators don’t have access to your banking or credit card numbers. That said, collaborators can see the whole set of accounting tools for every account you add them on, so be sure that you’re ok with them having view access.

QuickBooks has a whole special software designed just for accountants to manage multiple client accounts all from a single dashboard. All the small business owner has to do is give them access to an Accountant’s Copy of their ledger. This copy of the business records lets both the client and accountant work on managing the account at the same time. There are restrictions to the Accountant’s Copy to keep data from being duplicated or overwritten. The Accountant’s Copy help documents are extensive, so there’s lots of support for this tool. Also, because QuickBooks is so popular across small business accounting, most accountants with some experience will have worked with the system.

Reporting

Easy to view and understand reporting is important for small business owners who need at-a-glance updates on their financials and don’t have time to pore over ledgers and account sheets to get a full picture of the state of the business.

Wave updated their reporting tools in April 2018 to make them more intuitive and house them in an easier-to-use interface. They’ve pulled some of the most-used reports out of your general ledger and made those accessible through the Reporting menu. The Reports page categorizes the views of your account into Get the Big Picture, Stay on Top of Taxes, and Focus on Customers, with helpful report views in each. While an improvement over a general ledger view of your accounts, these reports don’t provide complex data analysis.

QuickBooks has the upper hand here with in-depth reporting for all plans and levels. There are a lot of snapshot reports that are available with one click, and your dashboard homepage provides simple KPIs and metrics to give a quick view of account health. Look for advanced reporting features like budgets, sales reports, and more, and you can always download a .CSV of your accounts to import to your BI software.

Experience vs. innovation

QuickBooks has a robust history in the world of accounting software, and many companies turn to it for its reliability and functionality. The software doesn’t generally change much outside of patches or scheduled updates, and many small business owners like knowing exactly what they’re going to get. Because of their level of experience, QuickBooks can offer a level of service and expertise that many small businesses need.

However, experience isn’t everything when it comes to small business accounting. Compared to QuickBooks, Wave is a relative newcomer to the accounting software industry, but they have a lot to offer their customers. As a newer company, Wave is more willing to innovate, leading to exciting features like the ability to manage more than one business from a single account. If you feel confident in your accounting abilities, you may like the innovations that a newer software can offer.

Wave vs. QuickBooks: SMB accounting options

The differences for Wave vs. QuickBooks small business accounting software are fairly minimal. Wave provides a great starting place for super-small businesses and freelancers with free accounting and invoicing tools without a lot of complicated bookkeeping features. QuickBooks offers reasonable pricing for small business owners, but the abundance of features they offer that provide flexibility for growing businesses could overwhelm those just starting out.

Wave and QuickBooks aren’t the only small business accounting software choices competing for your business. You’ve come to the right place to compare the best accounting software to fit your needs. Visit our Accounting Product Selection Tool for accounting software for reviews of the best accounting tool for your small business.

Top Human Resources Software Recommendations

The post Wave vs. QuickBooks: Comparing Small Business Accounting Software appeared first on TechnologyAdvice.

Enter accounts payable software.

Save time, streamline your process, increase security, efficiency, and control with an accounts payable software. It can process large volumes of invoices, match supplier invoices with corresponding purchase orders to accurately track the amounts owed, and — of course — automate your accounts payable processes, reducing manual tasks and giving you more visibility and control of financial data. The software integrates with your accounting solution or with accounting modules of ERP systems.

We’ve chosen five solutions for small businesses who employ freelancers, contract workers, and the like. These vendors are in no particular order.

Not sure where to start when choosing a software vendor? Click the image below or use our Accounting Software Product Selection Tool. Our Technology Advisors will listen to your needs and match you with a list of five accounting software vendors who meet your requirements. If you’re still doing research, read on for the top five accounts payable software vendors.

Compare the best accounts payable software

Pyrus

Pyrus is a cloud-based system designed to streamline invoice workflow developed by Simply Good Software, Inc. Alongside workflow management and service desk products, Pyrus offers an AP software that automates workflow from capture to payment. It features an easy-to-use interface for data validation, general ledger coding line items, and purchase-order matching. Invoices can be routed depending on the amount, vendor, location, or any other attribute. Pyrus integrates with Salesforce, G Suite, Dropbox, and more. It has pre-built integrations with popular accounting software such as Microsoft Dynamics GP and QuickBooks. Best of all, Pyrus is free for unlimited users for an unlimited time. Of course, other pricing plans with more features are available.

Standout feature

Pyrus replaces manual data entry with automatic image capture technology. Forward a vendor invoice to a Pyrus email, and Pyrus will automatically capture the data and fill out an invoice payment request form.

Stampli

The invoice is important, but communicating the details often go beyond the invoice. Stampli is an AP automation platform that automates invoice and approval workflows with technology that learns and adapts to your accounting process. Stampli features an intuitive platform that provides customized views based on the user’s role. There’s easy access to reports and insights with advanced search, dashboard, and audit-ready invoice. It only takes a day to set up, and integrates with software such as Sage Intacct, Oracle Netsuite, and QuickBooks. Pricing is quote-based.

Standout feature

Stampli uses AI technology with Billy the Bot. Billy automates AP processing by automating invoice capture, GL-coding, and approval notifications. It also aids in identifying potential fraud by alerting the necessary parties.

Mineraltree

Designed for growing, middle-market companies, MineralTree offers end-to-end AP automation for invoice and payment processing. Provide the invoice and supporting documentation, and MineralTree extracts header and line item data and posts it back to your accounting software. Online invoice routing allows users to get requests to the appropriate approvers quickly. Checks and electronic payments are processed directly from your bank. MineralTree offers two-way integration with accounting software such as NetSuite, Sage Intacct, Quickbooks, and more. Users pay a fixed monthly or annual fee that’s based on your volume of invoices and payments.

Standout feature

MineralTree incorporates advanced payment security features such as two-factor authentication, two-factor payment verification, and payment limits. In addition, they offer Bank Positive Pay: a feature that ensures your bank automatically receives details of all checks authorized and issued.

Approval Donkey

Approval Donkey is a workflow management software that collects, automates, and tracks approvals, sign-offs, and decision requests. Automate any process requiring approval such as purchases, time-off requests, and expense claims. Approval workflows are multi-step, with group or unanimous settings. Collaborate with your team, so the approval process can move along quicker. Approval Donkey integrates with Zapier to bring you the option of integrating over 1,000 apps. Automate common tasks without leaving apps like Trello, Asana, and Gmail by creating ‘Zap’ templates via Zapier. Approval Donkey has a limited free option, or a cost per month option with more features available.

Standout feature

Approval Donkey sends status updates and up-to-date information to your email or to any app that Zapier integrates with, like Slack, Trello, or Google Sheets.

SAP Concur

Track your spending and automate AP with SAP Concur, a product of the well-known ERP software company SAP. Concur is designed for small to midsized companies, and also offers expense and travel products within the software. Managers can approve expense reports and invoices at the same time. Vendors can see their payment status. Concur offers tools to track KPIs, and has an intuitive dashboard to track metrics. It integrates with any SAP product, and can scale up to meet the needs of larger companies. Pricing is quote-based.

Standout feature

Sap Concur features a three-way matching system to spot exceptions, stop errors, and eliminate manual tasks. With this, you can gain visibility into exceptions, mismatches and spend, and avoid duplicate payments and late fees.

Finding the best accounts payable software

Investing in an AP tool saves your company time and money. If you’re conducting most of your invoice processing on paper, you’ll also contribute in saving the planet due to the paperless switch. Who doesn’t love to go green?

Don’t see a software solution that meets your needs? Use our Accounting Product Selection Tool for five free recommendations tailored to you.

Top Human Resources Software Recommendations

The post The Best Accounts Payable Software appeared first on TechnologyAdvice.

1. Timing

Bonus cadence can take a variety of forms. There have been cases made for annual, semi-annual, holiday, and even spot bonuses. To determine your bonus schedule, start by considering your overall goal. What do you want bonuses to achieve? Performance bonuses, for example, may be linked to your company’s talent review cycle and reward high-performers. Alternatively, an end-of-the-year bonus that is determined by your company’s overall revenue that year helps employees share in the company’s success. Branding an end-of-year bonus as a holiday bonus is yet another way to make employees feel valued and appreciated for another year of hard work.

ALSO READ: Bonus Time: Using Performance Metrics for Payouts

2. Decision-Makers

Your bonus process should clearly delineate who’s responsible for deciding who will receive a bonus and for how much. While it’s payroll’s job to cut the checks, it may take someone outside of the HR team to provide a holistic view of employee performance.

If using a performance-based model, consider allocating bonus money to departments based on overall performance as a team, and then give the manager discretion to divide it up amongst individual employees. However, even in this scenario, HR should have the ultimate say in reviewing and approving the proposed bonuses.

In some companies, everyone receives the same bonus. In others, the amount is determined by a formula relative to the employee’s salary and performance. Decide from the get-go what role leadership, managers, and HR will have in the decision-making process so that you aren’t blindsided by complaints once bonuses are distributed.

3. Taxation

Bonuses are considered supplemental wages by tax authorities and are taxed much more heavily than a regular paycheck. Be sure to communicate this to employees so that they are not surprised to see that their bonus or commission has been cut almost in half. Take note that there are two acceptable methods for handling these taxes:

• The more simple approach applies a federal flat rate (25 percent, as of 2017) to the bonus. In addition to this rate, other taxes like Social Security, Medicare, and any local supplemental taxes will also need to be deducted from the payment.
• The more complex aggregate approach is sometimes preferred by employees in lower income tax brackets. This method is best described in steps:
  • Add the bonus amount to employee’s most recent paycheck
  • Take the sum and determine what the regular federal withholding amount would be
  • Subtract the usual withholding amount from the combined withholding amount
  • Withhold the difference from the bonus

Both methods are permissible by the IRS. The simpler percentage based model typically results in a higher payout to the employee and less confusion for HR.

4. Performance

Oftentimes, bonuses are distributed based on employee performance. However, this is not as cut and dry as it may sound. Performance can be a very subjective measure, so ensure that your management team is aligned on how they define a high performer. Once you reconcile discrepancies in management styles, establish a quantifiable method to help you derive the bonus amount from an employee’s performance.

Performance bonuses can be individual or company-based. If the company achieves overall business goals, everyone in the company may be entitled to a bonus. Other times, performance bonuses may be divvied up at the department or individual level. This affects the timing as well, as overall company bonuses would likely line up with the end of the year versus performance bonuses with the timing of the review cycle.

Alternatively, many companies have taken to separating compensation and bonus cycles from the actual performance review cycle. Though performance and compensation are inextricably linked, the excitement or disappointment around monetary incentives can distract from the focus of performance reviews.

Final thoughts

While bonuses are a great way to boost employee morale and retention, ensure you have the right process in place to send them out with confidence. Be prepared to answer employee questions about why they received a certain bonus or why half of the amount went toward taxes. Thorough planning and follow-through set you on the right track to a great bonus season—whenever that may be.

This post by Rachel Fenton originally appeared on The Namely Blog.



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The meaning behind these seemingly disparate numbers is simple. Successful accountants in the coming years need to focus less on simple and automatable accounting tasks, more on an advisory role, and above all, learn to master the tools on the market so that the software works for the CPA, and not the other way around.

ALSO READ: 8 Reasons Accounting Software Isn’t Just for Big Business

To help you prepare, here are four accounting software innovations to look out for in 2018.

1. Your World Will Flatten

Cloud-based accounting services are becoming the norm. Anytime, anywhere data access and sharing means that a CPA can service clients across the country of even overseas as easily as they once approached clients in their own communities. Such increased global reach flattens the world, increasing competition among the best CPAs and firms vying for top clients. Furthermore, cloud-based accounting software makes it easier for clients to switch CPAs without a large paperwork transfer.

CPAs who want to keep a leg ahead of their competitors should consider the human skills that, when combined with cloud-based software, make them stand out from the crowd. An excellent client services experience should always the foremost of where you focus. But with increased globalization, you may also want to consider mastering a foreign language. Adding a foreign language skill to your resume makes you an even more desirable partner for clients that either exist wholly in other countries or have offices worldwide.

2. You’ll Gain a New Title, Marketer

Again, increased job growth and globalization means CPAs will continue to face more competition. To win business, you can’t be idle. Word of mouth has worked well for many CPAs to grow their client lists in the past and will continue to do so with a digital spin.

The accounting software on the horizon is likely to incorporate aspects of marketing automation into the solutions. This means CPAs will be able to take advantage of the ability to send beautifully designed email newsletters or follow-ups. They’ll be able to automate sharing on social media or create videos or white papers with ease. Such tools at hand present an incredible opportunity to CPAs who choose to take advantage. In particular, automating the process of asking (and asking again) for referrals could be beneficial, formalized referral programs not only increase the number of referrals gained, but the ratio of referrals closed.

3. You’ll Become a Data Ninja

In many ways, the automation of accounting tasks like bill entry, receipt uploads, and check printing has made a CPAs work life easier. But it’s also made it easier for clients to take on these tasks themselves. According to research, 37 percent of small to medium business owners think that they can now complete many accounting tasks themselves using accounting automation.

That number is likely to grow, so successful CPAs will need to master additional ways to add value to their clients’ businesses. In addition to automating some tasks, accounting software is becoming increasingly capable of digging deep into data and the reports you want to pull are becoming more and more customizable. The right data can identify trends that will help your clients avoid risks and proactively address opportunities. The more you can provide those actionable insights, the more value you’ll have beyond what software alone can produce.

4. Your App Library Will Grow

Cloud-based accounting software makes integration with a variety of related apps seamless. And you can expect to see the number of accounting-related apps solving for a variety of challenges increase in the coming years. Successful CPAs should see themselves as app librarians, well aware of and versed in a variety of tools that allow you to create custom suites of solutions for your clients.

Not only will your clients appreciate tailored solutions, an app library will help you overcome some of the limitations imposed on your growth potential by the size of your firm. With the right apps in place, you can upsell additional app-based digital services.

Successful CPAs don’t need to fear the rise of accounting software, they need to embrace it. It’s important to be current on the products out there so that you can continue to provide value to your clients as not just an accounting expert, but a technology expert. To check your knowledge of the tools on the market, use our Accounting Software Product Selection Tool for accounting software comparisons or talk to a Technology Advisor to see which software best fits your needs.

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ALSO READ: The Top Payroll Software For Enterprise And SMB

Yet while you can forgive yourself for messing up your own check, as you add employees to your company, payroll problems aren’t so easily forgotten: Your team relies on accurate and timely payroll operations in order to live well; your business can only succeed if your budget is correctly balanced; and the IRS isn’t that understanding of excuses like, “I’m new to this” or, “Oops.”

Payroll mistakes have very real and very costly consequences. Here are five common payroll errors that with the right knowledge, tools, and preparation, your small- to medium-sized business can avoid.

ALSO READ: How to Choose the Right Small Business Payroll Software

1. Employee Misclassification

Exempt or non-exempt? Contractor or part-time employee? The rules governing how employees are classified are created to protect individuals from being taken advantage of by their employers. But most employee misclassification mistakes are a result of simply not understanding where the lines are drawn and how the labels are determined. The IRS is increasingly auditing for these classifications as mistakes can result in underpaid payroll taxes. In today’s gig economy, it’s smart to deeply familiarize yourself with the rules or consult an expert.

2. Using a Paper-Based System

The homegrown system for tracking hours and invoices that feels comfortable because you’ve had it in place so long is actually uncomfortably close to the danger zone. Paper gets misplaced, thrown away, or shuffled around. It’s not only notoriously inaccurate, it’s a time consumer. Manually moving data from paper to online systems offers much room for duplication, deletion, or other human errors.  Doing payroll yourself is an option but switching to a digital solution will prevent costly mistakes and save valuable time during tax season.

3. Poorly Handled Payroll Taxes

The list of Federal tax rules encompasses 75 pages of paper and doesn’t even begin to touch on the many and varied rules for state and local taxes. It’s enough to send anyone’s head spinning and errors always come back around to haunt you to a costly end. Late payments, missed payments, or simple lack of knowing what to pay top the list of payroll tax mishaps. Because the rules are so complex, it’s smart to bring in professional services or payroll software to avoid this mistake.

4. Over Scheduling or Under Scheduling

If you’ve been handling your employee scheduling on a piece of paper, dry erase board, or spreadsheet, it’s time for an upgrade. Just like other manual systems, going offline with your scheduling creates massive room for human error. This dark space is growing even larger as people become more reliant on their phones for information about work. Over or under scheduling shifts not only has costly implications for payroll, it also negatively impacts employee satisfaction.

5. Mishandling PTO

Another area in which mistakes are costly both in terms of finances and employee happiness is paid time off. Team members who put in the work not only deserve a break, but their productivity going forward will benefit from it. Making mistakes with tracking, accruing, and paying out unused PTO is easy to do when you use manual systems or don’t have multiple systems synced. Digital solutions can help hold both you and your employees accountable on PTO.

With the correct payroll measures in place, your business will benefit from smoother operations, more satisfied employees, and far fewer costly mistakes. Not sure where to start when it comes to payroll or hr software? Use our Payroll Software Product Selection Tool to compare more options, or contact one of our Technology Advisors for a free consultation.

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Every business wants to advance their operations. Yet, no business wants to spend a plethora of time and money for a miraculous solution. In today’s fast-paced and pixel-obsessed world, there is an ever-increasing demand for solutions that use fewer resources, while increasing productivity and return on investment.

If you’re tired of the headache involved with processing payroll, calculating taxes, and keeping up with regulations, then payroll software might be what you need to transform your business operations.

Save Your Time…

According to SCORE, a nonprofit that helps small businesses through education and mentorship, more than half of small businesses spend 1-5 hours per month on payroll — some businesses use even more time.

Also Read:  How to Choose the Right Small Business Software

Imagine your business spends five hours every month to run payroll. By the end of the year, your business would have used over seven days to run payroll. What could you do for your business with an extra workweek and a half?

Running payroll takes precious time. Payroll software can help your business save time. When it comes to processing payroll, you spend a lot of time doing calculations. Payroll software does all the calculations for you. And, not only do these automated calculations save time, they also reduce mathematical errors.

Also Read:  5 Costly Payroll Mistakes Small- and Medium-Sized Businesses Should Avoid

…and Save Your Money

As your business grows, so do payroll costs. Among small businesses, 46 percent spend $101-500 per month on payroll processing.

This is where payroll software comes in. Payroll software can eliminate the need for an accountant or in-house employee dedicated to payroll. Additionally, many software packages guarantee accuracy, so you have less risk of being hit with IRS penalties. Additionally, many businesses save on printing costs because everything is paperless.

Payroll Software: More Than Wages

These days, payroll software doesn’t just calculate employee wages. Many software packages have extra built-in features or add-on options. Below are some additional areas payroll software covers.

Export Reports to Accounting

Payroll is an expense that you must account for in your business records. Payroll software that allows you to export reports reduces time spent on accounting. Additionally, accounting software that integrates with your payroll software creates an automatic expense entry whenever you run payroll, which eliminates duplicate data entry.

Time and Attendance

Tracking when employees are at work is key to running payroll, especially hourly employees. Many payroll software packages include a timekeeping feature that employees use to clock in and out. At the end of each pay period, the software uses the integrated time card to calculate employee wages. You no longer need to calculate and enter employee hours by hand, which reduces expensive errors and saves time.

Employee Self-Service

Employee self-service gives employees control over their payroll information and reduces work for payroll administrators. Each employee has a personal payroll profile where they can see information about their wages, payroll deductions, time-off balance, fringe benefits, and more. Depending on the software you use, employees can make adjustments to their account, upload or download documents, and address their own needs.

Payroll Taxes

Payroll taxes are tricky. Each tax has a different rate. You deduct some taxes from employee wages, while you are responsible for paying other taxes. And, every tax has its own reporting and remittance rules. On top of all that, taxes vary by state. Messing up on payroll taxes can be costly.

If you do not pay the right amount or pay taxes late, the IRS and other organizations can penalize you. Many software packages will calculate and file taxes with guaranteed accuracy, giving you one less thing to worry about.

HR

Many software packages offer additional HR modules as an add-on. You can use HR modules to check employment history, track employee census, store important documents, and manage employee benefits. Integrated HR software suites can streamline your workflow by keeping all your payroll and HR information organized in one place.

Wage Payment Options

Payroll software provides many options to pay your employees, such as handwritten checks, printed checks, direct deposit, and pay cards. With a few clicks, you can pay your employees without switching between different software programs. With everything in one place, you save time and employees can get paid how they prefer.

Let’s Talk about ROI

Payroll software has the potential for a considerable ROI. Payroll software generally requires a low upfront investment and often helps save money when compared to manual payroll processes. As mentioned earlier, payroll software can save you hours a week, which is valuable time you can put toward more strategic business operations. Additionally, you can store all your payroll, HR, and recordkeeping information in one easy-to-access location, which streamlines your workflows.

Many software companies offer a free trial, so you can test the software before committing. With low investment and increased business functionality, payroll software is the key to improving your business operations. For most businesses, the question isn’t if you should invest in payroll software, but when to invest. If manual processes or outdated software is holding your business back, then the time to invest in new payroll software is now.

To learn how to compare payroll software like a pro and choose the best system for your business, download the free guide below.

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