Money saved is money earned. That’s why, when it comes to running a construction business, savvy entrepreneurs know that even a small efficiency improvement can represent a key boost to the bottom line.
In this guide, we’re highlighting one such cost-cutting measure that every small construction business owner should consider: paperless payrolling services.
Thanks to the convenience and affordability of modern digital solutions, many small construction companies are able to streamline their payroll procedures. Switching to a paperless method trims expenses and improves efficiency without any adverse effects on operations.
Here are the key benefits enjoyed by construction business owners who switch to a paperless payroll system.
No More Printing Costs
The cost of printing a single check is minor. Printing a few thousand checks over the course of a year? Those small costs add up.
Since even small construction companies often have dozens of full-time employees, paid weekly or biweekly, paper checks represent a significant operational inefficiency—and a considerable expense.
Using a paperless payroll service enables your business to send both checks and pay stubs electronically, offering money saved with every single paperless distribution.
No More Mailing Costs
Along with printing, the cost of mailing checks and pay stubs adds up to form a significant and unnecessary expense for a small business. With the price of a stamp up to 63 cents, the cost of mailing checks every single week can really add up.
Mailing checks is especially slow and expensive in the construction industry, in which staff sizes tend to be large and many workers live fairly far from their company’s headquarters.
When working with a paperless payroll service, you can distribute both checks and pay stubs electronically, eliminating the cost and hassle of stamps, envelopes, and paper from your payroll process.
Reduced Administrative Costs
Paper checks don’t print, seal, and distribute themselves. For a small business, the time-consuming tasks associated with issuing paper checks are often the owner’s responsibility. This is an inefficient use of time for a company’s leader. Or, payroll busywork is delegated to an admin worker, representing an additional labor expense for the company.
When you use a paperless payroll service, nearly the entire payroll process can be automated. Along with reducing your administrative workload, eliminating paper check tasks helps you and your team spend less time in an office and more time on your job sites.
Employees prefer receiving their paychecks and pay stubs electronically, making this upgrade an easy benefit to provide for your staff.
Paperless payments give employees access to their pay stubs and pay history from anywhere at any time. Because electronic checks and stubs can’t be lost or stolen, employees don’t have to think twice about handling or safeguarding their checks.
Paperless payroll systems are especially appreciated among construction workers, who often need to travel far from home to get to job sites. Automatically receiving checks electronically means that workers don’t need to visit the company office, their own mailboxes, or their banks in order to receive and deposit their checks.
Better for the Environment
Upgrading to a paperless payroll system offers the additional benefit of making your business more environmentally friendly. In addition to reducing paper and ink use, you’ll be switching to a system that demands less energy use and creates a smaller amount of physical waste.
Improved Data Security
Paperless payroll service providers offer electronic data storage with secure access via encrypted passwords. The private info that appears on checks and stubs will no longer need to be transferred to a paper format, where it’s most vulnerable to identity theft.
In addition to improving security, switching to a paperless system typically offers an upgrade in storage space for your payroll records. All of your records will be held safely online, where they can’t be misplaced, and each employee can access their own private account whenever they need to.
Get Help Managing Your Construction Business’s Finances
Stratlign is a full-service accounting firm that specializes in the trade and construction industries. We work with general contractors, landscaping contractors, plumbers, and other talented tradespeople.
If your construction business could benefit from some expert assistance in the areas of payroll, bookkeeping, tax prep, or financial planning, then we can help.
To learn more about how Stratlign can help your business improve its financial operations, contact Stratlign today to schedule a 15-minute call with our team of small business accountants.