Payroll is undoubtedly one of the most significant business expenses, typically accounting for roughly 20% of an organization’s expenses. Neglecting this critical line item can quickly lead to the cost of doing business spiraling out of control. With a fluctuating workforce, you don’t need a crystal ball to forecast your payroll expenses for the year. A payroll budget can help you anticipate your payroll expenses and give you a clearer picture of your general operating budget.
The Easy Parts of Payroll Budgeting
If you’re already dreading creating a complex spreadsheet, now is a good time to relax. In any case, according to a Market Watch report, nearly 90% of spreadsheets contain errors. You’ll be using spreadsheets sparingly, if at all.
While online payroll services are excellent for processing payroll, they sometimes lack robust budgeting features. For this reason, a dedicated budgeting and forecasting tool is the best option. These tools help you quickly and accurately create payroll budgets. They also integrate with your accounting software to make the entire process seamless and straightforward.
Another reason to choose a budgeting and forecasting tool is its wide application. Your payroll budget is likely only one part of your business’s master budget. Using a single tool to manage the entire business budget streamlines your efforts, reduces costs, and decreases the chances of making errors.
The Difficult Parts of Payroll Budgeting
Picking a budgeting…