Every business needs to advance its operations to be successful, but many are not willing to spend money and time on a solution. In this digital age, the demand for solutions that enhance productivity and ensure return on investment (ROI) using fewer resources is increasing by the day. The process of staying updated with regulations, calculating taxes and processing payroll can be time-consuming, and this is why payroll software is crucial to transform business operations.
According to SCORE, a non-profit organization that helps small businesses by providing training and mentorship, more than 50% of small businesses spend more than 5 hours every month processing payroll. In a year, these businesses will have used more than a week on payroll, the extra time could be used to maximize productivity and profitability. Payroll software helps businesses to save time because the program does all the calculations, and apart from saving time, it reduces mathematical errors.
Payroll costs grow according to the business. Most small businesses spend £100 to £500 per month to hire an accountant or pay an in-house employee to process payroll. With the software, accuracy is guaranteed so there is less risk to be hit with tax penalties by the government or other organizations. Also, businesses save more money on printing costs because payroll software uses paperless technology.
Payroll Software Features That Enhance Business Productivity
Nowadays, payroll software programs are advanced and have packages offering numerous add-on options or extra built-in features. You will not only use the program to calculate the wages of your employees but also in the following areas:
Export Reports to the Accounting Department
Payroll must be accounted for in the business records. Payroll software enables you to export financial reports thus reducing the time spent on accounting. Furthermore, you can use other accounting software that integrates with the payroll software to automatically create a new expense item when you are running payroll, thus eliminating duplicate entries. Accounting AI and Automation technologies also reduce supplier and employee fraud.
Attendance and Time
It is mandatory to track the work schedule of your employees to run payroll effectively, especially when you have hourly employees. Payroll software includes a timekeeping feature that employees can use to indicate when they start and finish shifts. Businesses no longer need to calculate the number of hours each employee has worked by hand, which saves time and eliminates expensive errors.
Programs with the employee self-service feature simplify the work of payroll administrators by allowing employees to control their information. The panel has a personal payroll profile for each employee where they can view information such as wages, benefits, payroll deductions, and time-off balance.
Calculating payroll taxes can be a complex task because each tax comes with a different rate. Employers are required to pay some taxes themselves while deducting others from the employees’ wages. Additionally, each tax has its remittance and reporting rules. Making mistakes on payroll taxes can attract very expensive penalties.
Many payroll software packages have additional human resources modules for checking employment history, storing important documents, managing employee benefits and tracking employee census. Using integrated HR software alongside the payroll software will streamline the workflow by keeping all HR and payroll information well-organized.
Wage Payment Options
With a few clicks, you will be able to pay your employees in a variety of methods such as direct deposit, pay cards, printed cheques, and handwritten cheques. All this can be done without switching between different programs. Your employees will enjoy being paid faster and through the means that they prefer when you have all the relevant information in one place.
When selecting the software for your business, it’s vital to consider the features and add-on options. There are several other factors to consider for the best program to use for your type of business.
Choosing the Best Payroll Software for Your Business
To process payroll efficiently and accurately, you must choose the most suitable payroll software system for your business.
The first step is to evaluate your business needs because no two businesses are similar, even if they can be categorized under the same niche industry. Therefore, each business requires different software features to cater to the unique nature of the company. Ease and simplicity of payroll functions can only be realized when you get customized payroll software that will have a positive impact on your company.
You can be sure to get the best software for your business when you consider:
– The company’s size, which translates to the needed resources and time
– The budget allocated for running payroll
– Level of familiarity and comfort with legal and regulatory payroll considerations
Next, evaluate functionality versus cost. Although cost is a huge factor, it should not be the primary determinant when selecting a payroll solution since the cheaper the software, the more manual work required running and maintaining the system. Payroll software that costs more will help your business to save more time and money while reducing manual work in the long run.
Ensure that the system is safe and private; payroll data include contracts, wages, and other personal information. The data is sensitive and must be stored securely, even if it is in the Cloud since research reveals that only a third of companies can confirm that their data is secure. The software you select must ensure privacy and comply with all security protocols so that you can manage any data without worrying.
Payroll Software ROI
The most suitable payroll software for your business ensures a return on investment. The software usually needs low upfront investment, but it helps businesses to save more money in the long run, unlike manual payroll processes.
As mentioned earlier, you can save plenty of time when using payroll software, and you can use this time to create strategic plans for streamlining your business operations. Also, the ability to store all information in one location that is easy to access ensures streamlined workflows. Many solution providers offer a free trial, so you can test out several programs before committing. You can now enhance your business operations with low investment, but enjoy the increased functionality offered by payroll software.
Manual processes and outdated software programs can hold your business back, so now is the time to invest in new payroll software.
This guest post has been authored by Tahir Miah