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Are you reluctant to let go of your outdated telephone system, even though you know that switching to VoIP would help keep your business in step with the competition?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.

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.

Factoring Can Help Cash Flow

Managing cash flow is a major consideration for many businesses. Cash flow, in essence, is a balance of money coming into the business and money going out of the business. Money comes into the business when goods or services are sold. Money goes out of a business to pay for things like inventory, payroll, capital expenditures, and more. Cash flow management can be tricky and even well-established businesses can have a hard time managing cash flow from time to time.

Fact: when businesses extend credit (which occurs anytime a business has to send an invoice for products or services), it will have 10 to 20 percent of its annual sales stuck in accounts receivable. That’s a significant amount of money each year!

When a business needs assistance managing their cash flow, the business can turn to a variety of resources, including banks and other lenders. However, many businesses either can’t get funding through a traditional lender, or would prefer to get funding through alternate means. Factoring is an alternate mean that is very appealing for many businesses. Factoring, in essence, is “cash without borrowing.”

Here’s How Factoring Works

A business sells its accounts receivable (outstanding invoices) to an investor (factor) at a discount rate – usually of about four percent). The factor then collects the money from the customer. Because the business sells the accounts receivable at a discount, the investor is able to collect on the discounted margin. That margin is generally based on a percentage of the total cost of the invoice, but may also be based on a flat rate.

Factoring is a very common practice that has been around for thousands of years, according to Vital Force Factoring. It is generally a business-to-business service, but consumers also use factoring systems anytime they make purchases with a credit card. In the case of a credit card arrangement, the credit card company will pay a retailer for goods when a consumer makes a purchase. Therefore, the credit card company, acting as a factoring agent, serves as a middle man and is in charge of managing payment for a product or service. The factoring system works in much the same way as a credit card system in business-to-business transactions.

Benefits of Factoring

Many company, such as Florida-based First Capital, are in business to buy receivables in exchange for immediate cash – as much as 97 percent of the total amount of the invoice. Some businesses use factoring for funding when they are unable to get bank loans or loans from conventional lenders. In a pinch, some businesses even use factoring to pay for inventory, payroll, and other immediate needs.

Factoring can also help businesses to improve their invoice collection rates as factoring companies handle all aspects of accounts receivable for a company. Some businesses enlist the help of factors if they are unable to collect on an invoice. The factoring company will then use its own resources to collect on the invoice, allowing both the business and the factoring company to receive payment.

Many factoring companies will also perform credit checks on new customers in order to determine the risk associated with engaging in a partnership with the new customer. This credit check can also help businesses to assess a credit amount or interest rate for the new customer.

When looking for a factoring company, look for a company that has a high advance rate for invoices, offers fast payment on invoices, has appropriate invoice management tools, and has a good reputation for collecting payment from customers. It may be helpful to review several different factoring companies before selecting the company that’s best for your needs.

Advantages of of Online Payroll Companies

Every company that pays employees needs to ensure they have a system in place for paying their employees (and their taxes) accurately and on a regular schedule. Some small businesses have an in-house employee (usually an accountant) perform the appropriate payroll financial calculations and issue paychecks. However, many small businesses do not have a need for a full-time (or even part-time) accountant to perform payroll functions. In such a case, a small business can save time and money by contracting an outside payroll vendor to handle payroll services.

One of the most cost-effective and reliable payroll solutions for small businesses is online payroll. Online payroll creates an interactive partnership between a business and an external payroll provider, which allows businesses to stay hands-on, but ensures that the business can continue to maximize its efficiency by not having to micro-manage all aspects of payroll.

How Online Payroll Works

Web-based payroll is a payroll solution in which you take care of the initial setup and processing of paychecks, but your vendor handles all of the computations. After the initial payroll setup is complete, cutting paychecks takes just a few minutes, as you only have to enter the pay hours and review the final figures. In such a solution, the online vendor handles all of the difficult aspects of payroll.

These Web-based payroll processing companies also allows you to manage your employee payment methods easily by giving you have the ability to pay employees with printable paper paychecks or via direct deposit. Moreover, all work is handled securely online, so there is no software to install; all you need to run payroll is an Internet connection.

Advantages of Online Payroll

Utilizing a web based payroll solutions is effortless, quick, and provides you with many elements to make your job easier. Web-based payroll systems give you the advantage of having an elaborate payroll processing service without the complexity and expense involved with such a system.

Additionally, online systems help to ensure the accuracy of your payroll calculations; all of the payroll tax computations are handled for you, including difficult year-end tasks.

Online payroll systems offer interactive features that can help you stay organized and efficient. These features comprise of email reminders, free direct deposit, the ability to print paychecks locally, rapidly add or make changes to employee benefits or withholdings, and more.

You can review payroll reports anytime from anywhere by logging onto the secure server for your Internet payroll provider. Moreover, many Web-based payroll services give employees the ability to visit a dedicated employee interface to information about their payroll statistics and history.

Four strategies for surviving the recession

There’s little doubt now that we’re in a recession, and many experts say it will likely last through 2009.

What does this mean for you and your business?

While nearly everyone is looking to curtail their spending, and credit figures to be much harder to obtain than it has been, there’s no need to panic. In fact, an economic slowdown can be a great time to pick up market share from your competitors, as they shrink their budgets, and thus their marketing.

Keep in mind too that when things pick up again, as they always do, you want to be well-positioned to accelerate your business along with the larger economy. That may mean down-shifting now so that you’re ready to up-shift in the future.
So here’s what you can do now to help maintain the health of your business, regardless of economic conditions:

- Cut unnecessary expenses. Where can you tighten your budgets? Whether you do it across the board, or surgically, trimming 10 to 20 percent can have a dramatic effect on your bottom line, while you preserve your core competencies and continue to service your existing clients.

- Focus on your ideal client. Rededicate yourself to finding clients who pay promptly, come back again and again, and refer others like themselves. This means examining your current marketing efforts to make sure you’re looking for the right people, in the right places. Ask yourself: How do I define my perfect customer? Where do I find them? Once I have a prospect, how do I qualify them?Once I’ve qualified them, how do I convert prospects to customers?

- Get out and make new contacts. LinkedIn, Facebook and other online networking sites are great, but there’s nothing like face-to-to-face conversations to build your network. You local Chamber of Commerce and groups like BNI are a great place to start.

- Package your products and services in a new way. Sometimes it helps to refresh how you present yourself to the market. Can you create an attractive offer aimed at new clients? Now’s the time to roll it out.