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How to Effectively Establish and Manage a Payroll System

Every eCommerce startup is bound to encounter its first few obstacles the minute they start to open their store to their customers. One such concern is managing payroll for your employees. At this point, it may be too early to hire an eCommerce accounting firm, so you have to rely on your own understanding of how the payroll system works. However, since payroll can get complicated quickly depending on the size of your business and the number of your employees, here are some tips to help you manage your payroll without too much hassle.

1. Create a Payroll Calendar

When handling payroll, it’s a great advantage to become organized even at the beginning. One good way to get organized is to create a payroll calendar to help employees understand when they get paid and when is the next cutoff for their salary. You can also benefit from this as it helps you and your payroll staff plan and execute payroll-related tasks.

Start by creating a regular calendar as your guide to help analyze certain dates that might require some lag to allow enough time for payroll processing. Then, you should give your managers and supervisors a copy of that calendar or make sure it is shared with them so they can keep track of it in real-time.

2. Establish a Paperless Payroll System

We live in a time where many people actually prefer paperless transactions, and that includes payroll. Going paperless helps you cut costs, maintain the security of your business’s data, and avoids the build-up of clutter like unclaimed payslips and the like. Some employees also prefer to not deal with paper pay stubs and physical checks as they can also be easily misplaced. If you plan on having remote working arrangements for your employees, a paperless system will also be significantly more convenient.

3. Automate Your Payroll Process

Since you’ll be targeting a paperless payroll system, you’ll be compelled to use eCommerce accounting software. This is the perfect opportunity also to take advantage of the system for automation. Applications like Xero and QuickBooks Online are some of the most common applications being used by many businesses. They’re quite flexible and allow integration with other platforms that could also help you. Automating your payroll process is the easiest way to keep up with time-consuming tasks.

4. Be Transparent in Your Payroll Process

Most of the time, problems arise when there’s a misunderstanding between an employee and the payroll staff or even the system that they use. Unfortunately, this is a common problem in organizations where pay policies are either not accessible by the employees or inadequately presented to them. Make sure to maintain a transparent payroll policy at all times to avoid these headaches. Also, it’s in the best interests of your employees and your payroll staff to perform regular audits to make sure your system is working efficiently and correctly.


These are just four of the most important payroll management practices you should consider adopting for your company. While these tips can definitely make your job easier, nothing beats a tax and accounting professional’s speed, efficiency, and expertise. Once your business starts to grow, consider hiring an eCommerce accounting expert to help you manage your payroll and finances.

The Ecommerce Accountant is a trusted name in the accounting industry, helping small businesses and new entrepreneurs get on top of their finances. Our dedicated team will help you minimise your taxes and increase your profit to help you reach your business goals. Whenever you need eCommerce accounting services, our team is always here to help. Contact us today to book a free strategy session.

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