As new small businesses begin to expand, paperwork can become out of control and automation of some tasks a necessity. When you are a one person show, a filing cabinet and a couple of spreadsheets will be enough to sort out your profit, your pay and your tax but when you begin to employ staff, or segregate existing staff into departments, payroll software should be taken into consideration. If you are unsure as to whether your business needs this software have a look at the seven key benefits below:
1.) Improved Efficiency In Payroll
Payroll is a complicated department that requires the utmost accuracy, and quite rightly too, no employee will be productive if their pay is wrong. Processing payroll manually requires a number of complex calculations, such as individual tax calculations for each paycheque; this wastes time that could be spent more productively. Payroll software can perform these tasks automatically once an employee’s details have been entered.
2.) Avoid Duplicate Records
When a number of departments (HR, Accounting Services, Payroll etc…) are using different software to collate payroll data it can often result in a number of duplicate records being created in the process. With one piece of payroll software that all departments could input data into this needless waste of time is eliminated. In addition to this, payroll software will more often than not allow customised security access for different departments. So, if security between departments is a concern, this is a feature to look out for.
3.) Track Employee Time
While ‘tracking’ employees may sound a little Orwellian, time tracking is actually beneficial to both the employee and the business. Employees on an hourly rate will receive the exact level of pay they are due (so no overtime ‘goes missing’) and the business can save time by reducing the effort and expense cause by incorrect time management by employees. The time is tracked using a clock within the payroll software’s daily log.
4.) Create Reports Quickly and Easily.
As would be expected, general payroll reports can be created by the software allowing managers a chance to review financial information. More specific reports can also be created though. Daily time logs can be reviewed with time reports. Employee lists can be created to help human resources, hiring and training staff. The accounts department can get help filing taxes via withholding reports and so on… a report can be created for almost any department where the software is in use.
5.) Simplify Tax Filing
Tax is nobody’s friend, so getting help to lighten the burden it has on your business is always good news. Manually processing tax can cause errors and we all know how unsympathetic the taxman is when it comes to mistakes. Payroll software will also become aware of changing tax laws via updates. So, instead of risking expensive errors, let the payroll software do this for you.
6.) Save Money
Time is money – it is an old business cliché but a true one none the less. Running payroll with software saves time that would be wasted with compiling information, making calculations and altering records. Simply put, saving time lowers overheads, which in turn, increases profit margins.
7.) Free Time
Time may be money but it is also opportunity. By minimizing errors and making the business more efficient payroll software offers the business owner the opportunity to seriously consider how to use all their new found time productively.