Fed up with spending countless hours processing payroll tax forms every month?
Fund operations teams know too well the struggle of spreadsheet dependency. Manual entry, version control issues and looming deadlines are a disaster waiting to happen. Not to mention incredibly expensive when errors happen.
But guess what…
You don’t have to live that way!
Digital automation can take care of filing while you take care of growing your business.
Here’s what you’ll learn:
- How relying on spreadsheets is hurting fund operations
- The true costs of manual payroll tax forms processing
- Everything automated filing has to offer
- How to make the transition (what you need to know)
Why Relying on Spreadsheets Hurts Fund Operations
Nobody likes spreadsheets. They’re tedious, outdated and prone to causing errors. But for some reason fund operations teams continue to use them every month when processing payroll tax forms.
Here’s the issue:
According to a recent report, 51% of payroll departments admit they STILL use spreadsheets as part of their payroll process.
What’s even more shocking is that almost 1 in 5 payroll departments rely on manual or paper filing.
Are you still sticking with spreadsheets too?
Sure they’re great at keeping records and basic calculations. But the process of manually entering W-2’s and 1099’s into spreadsheets opens up room for error. Even the smallest typo can result in major issues on your end.
If your goal is to simplify W-2 and 1099 forms filing, learn more about automated solutions that handle the entire process for you.
Human errors aren’t the only problem with spreadsheets
Imagine you have 5 team members who need to access the spreadsheets. They all go into the file and make changes. Then, someone saves without writing their name at the end of the document. Boom. You’ve instantly lost track of what changes who made.
When it’s time to file for taxes this type of chaos is a big problem.
The True Costs of Manual Payroll Tax Forms Processing
Did you know processing payroll tax forms manually costs money?
Yep, it does. And it can add up quickly.
Penalties for incorrect or late W-2 forms can cost you anywhere between $60 to $680 per form.
If you’re a fund operations team processing hundreds or thousands of forms each year, those penalties can really stack up.
But money isn’t the only resource you’re wasting when processing forms manually.
There are hidden costs too. Costs that don’t immediately show up but bleed your bank account dry overtime:
- Employee overtime: Having team members work nights and weekends just to double check spreadsheet data is crazy.
- Lost opportunities: When your team is tied up processing forms they’re not out there generating new leads or working on business development.
- Keeping up with compliance: Tax laws constantly change and it’s hard enough just working in fund operations. Trying to decipher new IRS rules and translate them to your spreadsheet will eat up a lot of your time.
Considering businesses are now required to file 10+ information returns electronically with the IRS. Not only are fund operations teams wasting time with manual processes, they could be failing to comply with federal regulations.
Ouch.
You can’t win.
Everything Automated Filing Has To Offer
Technology has made it easier than ever for payroll teams to process tax forms.
Instead of manually entering data, automated payroll tax forms services pull information right from payroll records. They double check for accuracy, catch errors before they’re submitted and file everything electronically.
No more importing data to spreadsheets. No more rushing to file at the last minute.
Here are a few benefits you’ll notice right away:
- Less Errors: Human error is greatly reduced because data is validated within the software before it’s submitted.
- Faster: Processing time that used to take weeks can now be done in a matter of hours.
- Compliant: Software automatically updates to stay compliant with IRS rules. You don’t have to worry about digging through documents to find the latest tax updates.
- Audit ready: Digital records allow you to stay organized. It’s easy to search for specific files and locate the information you need.
Not to mention, filing electronically using automated systems is scalable. Whether your fund operation is filing 50 forms or 5,000, the process remains the same every time.
How Fund Operations Can Make the Switch
Sure, going from spreadsheets to automated tax filing sounds great. But it’s not something you can just do overnight.
Here are some steps to help you along the way:
Start by mapping out your current process.
It may seem cliche but you need to know where you’re at before you can improve on anything. Write down each step it takes to process payroll tax forms in your fund operations department. This will allow you to identify bottlenecks and painful parts of your current process.
Determine what features are musts.
Every fund operation is different. Maybe you need a service that allows bulk filings. Maybe your team requires specific integrations with other accounting software. Listing out what you need from a software will make your search way easier.
Implement, implement, implement!
Once you’ve found your software of choice, run it parallel to your current process. For one whole filing cycle do both. This allows you to become comfortable with the new system and work out any bugs before going fully automated.
Train your team.
This step is incredibly important. You can have all the technology in the world but if your team isn’t trained on how to use it, you’re taking a huge risk. Make sure every team member who will be using the new software knows how to use it correctly. Don’t cut corners when it comes to training.
Celebrate your benchmarks.
Now it’s time to sit back and watch the numbers roll in. Gather your data on how long it used to take to process forms. How many errors you’d usually catch. How much your team spent before automating. Then automate and watch the difference for yourself.
Wrapping Things Up
Moving your fund operation from spreadsheets to automated tax filing won’t happen over night.
But that doesn’t mean you shouldn’t try.
Cutting out manual processes by using outdated methods was fine…once. But with IRS penalties increasing, filing requirements growing and data volumes expanding – spreadsheet dependency just isn’t enough.
Here’s a quick recap:
- Processing payroll tax forms manually using spreadsheets is error prone
- Relying on manual processes cost your team money
- Automation simplifies, saves you money and allows you to focus on growing your business
- Implementing a new software into your fund operation is simple when you take your time
Fund operations teams have the opportunity to save their teammates time, money and stress by making the switch to digital tax filing. So what are you waiting for?
Peyman Khosravani is a global blockchain and digital transformation expert with a passion for marketing, futuristic ideas, analytics insights, startup businesses, and effective communications. He has extensive experience in blockchain and DeFi projects and is committed to using technology to bring justice and fairness to society and promote freedom. Peyman has worked with international organizations to improve digital transformation strategies and data-gathering strategies that help identify customer touchpoints and sources of data that tell the story of what is happening. With his expertise in blockchain, digital transformation, marketing, analytics insights, startup businesses, and effective communications, Peyman is dedicated to helping businesses succeed in the digital age. He believes that technology can be used as a tool for positive change in the world.
