According to a recent study, small businesses are paying $858 a year to maintain paper check operations. “Small businesses are writing a $13 billion check each year for a paper-based process that does nothing but hurt their bottom-line and, arguably, keep the United States Postal Service afloat,” said Anne Driscoll, Vice President of Marketing at Dwolla. So how can a business owner reduce this cost to make it more manageable? I’m glad you asked!
Let’s talk direct deposits
There are several perks to offering direct deposit, many of which benefit the employer as well as the employee.
Direct deposit allows for:
• Reduction of labor costs
• Reduction of supply costs
• Minimal wait-time
As the employer, you save money and your employees get paid in a timely, efficient manner. Not to mention there are various software platforms available in which to pay your people.
A simpler way to pay your people
For many people, technology is utilized every day. Everyone I know (my parents included) has access to their banking information on their mobile device. Simply put, this means your employees can check their mobile banking on payday to verify that their pay was received. Also, this works very well for employees who may be out on the day that checks are issued.
Cut costs, not checks
Replacing check operations with a digital method simplifies payroll processing. Reconciliation is much simpler when dealing with direct deposit because the payroll admin can look at the direct deposit record and see a total for the pay period. With paper checks this takes more time because you must reconcile each individual check that was issued.
In the long run direct deposit can end up saving you a substantial amount of money, especially if your pay frequency is weekly. If you’re interested in learning how you Dominion Systems can help you transition to a paperless payroll, please contact us today.
Want more content? Download our ebook 5 Simple Steps to Process a Paperless Payroll.