Take Full Advantage of Services Offered by Your Payroll Vendor

Most business owners realize the obvious benefits of outsourcing payroll, such as saving money—outsourcing can save your company up to 30% over the cost of in-house processing—and saving time. But you may be unaware the many things your payroll service can take off your hands, from annoying little tasks, to key procedures, such as:

• Paycheck processing for multiple company locations can be easily handled by your payroll supplier. Some vendors have a branch in every major city. Smaller suppliers will distribute paychecks to multiple locations via an overnight delivery service.
• Direct deposit, a feature that most employees appreciate, and that smaller businesses are unable to offer through an in-house system. Funds deposited directly into employees’ bank accounts are often available a day earlier than a paper check would be.
• Check stuffing, for those employees who prefer a paper check; your payroll service will handle the time-consuming chore of printing checks and placing them in envelopes.
• Special reports. Ask your payroll vendor for a list of their report-writing packages. This service can be of real value if your company needs any type of specialized report. Again, many in-house payroll systems do not have this capability.
• Data backup. You won’t need to be concerned about losing payroll information, because most payroll providers back up their data regularly.
• New employee reports. The law in most states requires businesses to file a report for each new hire. Your payroll service can compile the data of all your new employees and submit this information to the government electronically.
• Tax services. Save yourself the anxiety of possible penalties due to inaccurate tax payments by having your payroll provider remit all employee taxes.
• Expertise. You will have a team of payroll processing experts at your service. Your payroll provider will usually be able to answer your questions over the phone, and some will even come to your location for a consultation.

These are just a few of the services your company can take advantage of when you outsource your payroll. Your provider can also take over many processes normally handled by your human resources department, such as the administration of 401k plans and other benefits, saving your company even more labor dollars.

Are These Myths About VoIP Holding You Back?

Are you reluctant to let go of your outdated telephone system, even though you know that switching to VoIP would help keep your business in step with the competition? Some persistent but erroneous beliefs about IP telephony are still keeping some small companies from discovering its many advantages.

One common misconception is that VoIP is complicated to install and that making the transition is difficult. The truth is that there is no easier type of phone system to install than VoIP. With no on-site hardware, no set-up costs, and no technician visit required, you will probably find the switch to IP telephony easier than having cable TV installed in your home.

Another myth surrounding IP telephony is that training employees to use the system will consume many labor hours. On the contrary, IP systems are very intuitive. After a brief training session, all employees will be able to use features such as call center routing and auto attendantwith minimal help from management or IT personnel. VoIP technology’s integrated data and communications platform will actually help reduce your company’s labor costs.

Your VoIP provider will automatically maintain and upgrade your system without any disruption of your service. Multiple extensions and remote connections for employees who telecommute can be easily added. In fact, IP telephony systems provide scalability and flexibility that traditional systems have never been able to offer.

According to a report by market research company Dell’Oro Group, IP telephony will account for nearly 60% of new communication systems for small businesses, while installation of analog systems is expected to decline by an average of 10% per year, and the use of traditional systems will decline to less than 5% by 2011.

Small businesses that have already embraced IP telephony and realize the simplicity, ease of use, and flexibility it offers are taking a huge step toward positioning themselves to compete with larger companies.

Simple Steps to Avoid Having Your Merchant Account Frozen

Fear-inspiring stories abound regarding businesses that have had to shut down when their merchant account is put on hold. Fortunately, a little extra diligence on your part can reduce the likelihood of this happening to your business.

Reasons for merchant account holds typically fall into two categories—violation of the account service agreement and suspicion of fraudulent activity.

• Study your merchant agreement carefully when you first sign up for an account. Many credit card processing providers will ask you to declare the average volume your business will experience each month, as well as the expected average ticket amount. Be sure to make a note of the amounts you project, and be careful not to exceed them because this can cause your account to be frozen or cancelled.

• Never accept payment for goods or services other than those described in your merchant agreement. Again, it is a good idea to consider carefully what you agree to sell when you sign up for the account. If you own a carpet cleaning company, for example, listing your business as “floor care” will allow for the possible addition of related services. If you plan to sell items that are completely unrelated, you may need a separate merchant account.

• Excessive chargebacks can also constitute a service agreement violation and cause your account to be frozen. Good customer service and communication will prevent many chargebacks. Some merchants find it worth the effort to call their customers to verify each sale, and customers usually appreciate the extra security measure.

Suspicious processing activity can be more challenging to prevent, there are steps you can take to avoid having your account frozen for suspected fraud. Let your bank know ahead of time if you expect any changes in processing behavior such as a sudden increase in your average ticket amount or if you expect an unusually large single transaction. In this case, you should ask to speak to someone in your bank’s risk department.

Reputable credit card processing providers are as concerned about their customers as you are about yours, and finding such a provider will prevent many future frustrations. Plans and pricing differ, however, and most businesses find they need help sorting though all the variables.

Should You Use an Overseas Call Center?

Increasing numbers of corporations are looking to overseas call centers as a way to cut costs in a tough economy. Aside from the obvious benefit of lower costs, outsourcing your customer service calls can offer a number of advantages to your business.

Call centers, especially those located overseas in countries such as India, take the need to compete with their counterparts in the U.S. very seriously. Many hire well educated and computer savvy workers and provide customer service training from top companies. These centers have acquired substantial bandwidth and have established strong connections to the global networks using satellite links and undersea optic cable.

The best of overseas call centers have committed to providing the best customer service in the industry. It is what they do, and they do it well.

Your business can reap the benefits of their expertise, and at the same time eliminating the expense of establishing your own call center and continually hiring and training workers.

A few things to look for when choosing a call center:

• Customer references that verify the call center’s reliability and professionalism.

• An understanding of your particular industry.

• The ability to forecast and schedule for expected call volume.

• Technology such as performance management and data analytics.

• The ability to make changes and readily adapt to market conditions.

• Above all, excellent customer service.

Is It Time You Outsourced Your Payroll?

If your business has grown to the point where this question is necessary, kudos to you.

Of course, now you realize that in order to keep your business growing, and to maximize profits, you will need to spend your time on things other than bookkeeping.

One way to determine the best solution for your payroll needs is to look at what other successful businesses are doing in that regard.

A recent survey of over 800 businesses overseas found that 86% of these successful companies deemed it wise to outsource their payroll because of several advantages they received by doing so. Many felt that outsourcing gave them more control. It allows managers to plan and analyze this area of business, and to quickly implement changes when necessary. These companies also found outsourcing to be a more cost-effective means of handling their payroll.

Benefits of outsourcing your payroll:

• You are free to manage other aaspects of your business such as customer service.

• Payroll service providers can offer professional advise on difficult payroll issues.

• The cost of outsourcing will likely be less than hiring an in-house payroll staff.

• You don’t have to worry about your bookkeeper getting a new job and leaving you without payroll help.

• Many complicated payroll tasks are an automated part of payroll services.

• Outsourcing your payroll allows you to offer direct deposit to your employees.

• A payroll service can be an invaluable help when it comes to paying taxes accurately and avoiding tax problems.

• It eliminates the headaches involved with trying to use payroll software.

If your company is large, and you decide to go with payroll software as an alternative to outsourcing, you will you will need to hire payroll staff to run the program and deal with the many complicated payroll scenarios that can arise in a business with many employees.

If your business is smaller, you could probably choose a less complex software to meet your needs, but you will still need an employee or two who are adept at applying all of the payroll functions. Using payroll software does cost less initially than outsourcing your payroll, but you will want to weigh that advantage against the time spent implementing and using it.

Outsourcing your payroll easily solves all of these issues. Most business owners who make the move toward outsourcing find that their only regret is not having done it sooner..

Don’t Let Excessive Chargebacks Deplete Your Business

Chargebacks, which occur when a customer disputes a charge made to their credit or debit card and asks the card company to reverse the transaction. If you, as an internet merchant, have never experienced a chargeback on a purchase, you can be certain that it eventually will happen.

While chargebacks are practically inevitable, and many merchants view the fees as part of the cost of doing business, excessive chargebacks can put a real dent in your profits, not to mention your good standing with your credit card company. Fortunately, there are steps you can take to reduce their occurrence.

First, provide excellent customer service. Naturally, you want to do this anyway because it’s just good business. But good communication with your customers can go a long way toward minimizing chargebacks. Provide a contact phone number or email, and respond quickly to resolve any issues.

Describe your items or services with accurate details. Your customers should know exactly what they are getting, and when they can expect delivery. When possible, use tracking numbers and signature confirmation when shipping packages, and consider buying postal insurance so you are covered if a package is lost or damaged in the mail.

Most customers only request a reversal when they have a legitimate reason. Some buyers, however, ask for chargebacks fraudulently by making false claims. This happens more with higher priced items. Be alert for purchases where the billing and shipping address are from different countries, or the customer makes partial payments using different Paypal or credit card accounts.

Avoid accepting fraudulent purchases by asking for the code on the back of the card, confirming the billing address with the customer if the billing and shipping addresses do not match, and calling the card holder personally to confirm any orders that seem suspicious for any reason. Rather than being annoyed by the call, most customers will usually appreciate your taking the extra step for security’s sake.

If you accept credit cards at the location of the sale, you have the added opportunity to look at the signature on the receipt and compare it with the one on the card. Check for signs that the card has been tampered with or altered. You can also ask for a driver’s license or other photo ID.

The importance of minimizing chargebacks cannot be overemphasized. Most merchant account providers view any business that has excessive chargebacks as a risk, and will not hesitate to terminate the relationship if your account becomes too much of a liability to them. This can have a serious impact on your sales if customers are unable to make credit card purchases from you while you scramble to find a service provider who will accept your business.

The time and effort you put into reducing chargebacks will be well spent and can only serve to enhance your reputation as a seller.

Hosted vs. Premised VoIP

Picking a VoIP service for your business requires an important difference. Should you go with a hosted service or purchase a premise-based system? Let’s look at the difference.

A premise based system requires a PBX, in addition to the phone infrastructure such as routers that are common to either premise or hosted. Some companies prefer premise-based equipment because of the control and possible long-term cost savings. For businesses that don't depend on the ability to quickly manage and configure their telephony system, a hosted VoIP solution might be a better alternative as it less complex, and you don’t

Hosted VoIP internet phone solutions could be suitable choice for many businesses that starting off and/or looking for a simpler phone solution. You usually obtain the hosted solution bundled with the system and the service. The ongoing service for a hosted solution can include unlimited domestic long distance and local calls.

Hosted services can be deployed on a line-by-line basis, which means that they are easily expandable. They allow for flexibility during the transition from premise-based equipment to a hosted service because they can co-exist with previously existing premise equipment. This means that an enterprise doesn't need to transition all of its equipment at the same time, which would usually be the case with a premise-based PBX.

Disadvantages of premise based systems include costly up-front capital expenditures on hardware and software, although there are leasing options available. There are ongoing maintenance fees, software and hardware upgrades and operational expenses.

Each company needs to individually assess their needs and budget and research both VoIP solutions to understand features, control and cost.