How to Manage Payroll Funding & Processing for Staffing Companies
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Payroll funding for staffing agencies is a big job that increases as your company grows. What started out as a simple task when your company was small can become a very time-consuming and sometimes overwhelming duty when you’re placing more people in jobs.
However, with the right tools and strategies, streamlining payroll funding for staffing companies ensures that your employees are paid accurately and on time. Explore tips for handling your payroll processing.
Managing Your Staffing Company’s Payroll
To manage your staffing agency’s payroll, you need to have a system in place that allows you to track employee hours, calculate pay rates, and issue payments. You can do this manually using spreadsheets or invest in payroll software that automates many of these tasks.
Another option is to outsource your payroll processing to a third-party provider that specializes in payroll funding for staffing companies. This is a good choice if you don’t have the resources or expertise to handle payroll in-house and can fit into the budget. Just ensure you choose a reputable provider that’s experienced in working with staffing companies.
Funding Your Payroll
Funding payroll for staffing companies can sometimes create a challenge, especially if you have a large workforce or are experiencing cash flow issues. Often, when running your own business in the staffing industry, you’ll find yourself paying your workers before clients even pay you for the work. Here are some options to consider for payroll funding for staffing agencies:
- Self-fund: This option is excellent if you have liquid capital available. It allows you to skip out on any fees and avoid accruing interest on any credit lines.
- Business line of credit: A business line of credit is a type of financing that allows you to borrow money up to a predetermined limit as needed. It’s different than a loan because it’s a revolving account. You pay it off and still have the credit line available to use for future payrolls. However, you’ll incur some fees with a business line of credit.
- Invoices factoring for staffing companies: Invoice factoring is a financing option that allows you to sell your outstanding invoices to a factoring company in exchange for immediate cash. Invoice factoring for staffing companies is a good option if you have many unpaid invoices causing cash-flow issues.
- Payroll funding companies: There are companies that specialize in providing funding specifically for payroll. These companies typically offer short-term loans or lines of credit designed to cover payroll expenses.
- Become an AtWork franchisee: As an AtWork franchise owner, you can access payroll funding and processing services explicitly created for staffing companies. These services will simplify the payroll process and ensure that your employees are paid on time.
When Payroll Becomes Overwhelming
If you find that payroll funding for your staffing company or processing the payroll is becoming unmanageable, there are a few things you can do to make the process easier.
Automate as much as possible. Invest in payroll software or outsource to a third-party provider to automate many of the tasks associated with payroll.
Hire a payroll specialist. If you have the budget, consider hiring a dedicated payroll specialist to manage your staffing company’s payroll funding and processing.
Simplify your pay structure. If your pay structure is complex, consider simplifying it to make it easier to manage.
Convert to an AtWork Franchise
AtWork provides our franchisees with comprehensive payroll funding and processing services. Doing so simplifies the payroll process for our entire network of owners. Not only does our accounting department manage your payroll processing and funding, but we also handle your client invoicing, payment processing, W-9 completion, and W-2 processing.
If you’re a smaller staffing firm and want to continue to keep a lid on the size of your internal office staff, AtWork is perfect for you. Because we handle the backroom accounting, most of our offices only require one to three employees. Get started learning more about the brand by filling out our contact form.
