Payroll software can be very important to your business but making sure that the one you use is right for you can be more than difficult. Whether it’s choosing one on your own or hiring an outside consultant, there are several ways to ensure that you get the right software to meet all of your needs. This article outlines seven reasons why payroll software is important to your business and what you should keep in mind while choosing the right software to run your payroll operations.
1) Easier record-keeping
Manually keeping track of time off, sick days, and pay is not only difficult but can also put your company at risk. payroll software makes it easy to keep track of payroll information in one centralized location. Plus it eliminates mistakes by keeping you from entering duplicate or inaccurate information. In other words, you spend less time worrying about employee leave requests and more time growing your business.
2) Create more time by reducing manual input
It’s not uncommon for an employee to do something manually (like enter their hours) that could be done by a computer. If you were to transfer your payroll work onto a computer, you could save yourself time and money, since computers are faster than people at repetitive tasks like data entry. The more time you can save with automated systems, the more time you have for value-adding activities that only humans can perform. For example, maybe you want to spend more time managing employees or doing sales. Anything that saves time gives you more flexibility in how you use it. This is one of those occasions where technology leads directly to improved efficiency and cost savings on its own—but it also has a further range of benefits beyond just being a tool for streamlining processes.
3) Greater visibility on employee status
If an employee doesn’t submit their hours within a reasonable amount of time, there are very clear notifications that tell you they haven’t. If you have any employees who take leave, say for jury duty or maternity leave, you can see how many hours they’re taking and what other options may be available if it turns out not to be enough. Through workflow automation features, businesses can set up notifications that prompt HR staff members when time-off requests require approvals from other managers. This keeps everyone informed throughout the approval process and ensures nothing slips through the cracks. Payroll software also helps with time management by simplifying after-hours work.
4) Compliance with government regulations
You must comply with a wide variety of labor laws that cover everything from minimum wage and time-off standards to health care and pension regulations. It’s critical you know how these regulations affect your employees so you can keep payroll costs down while staying compliant with government rules. Plus, complying with government regulations requires tracking employee records and reporting related information at various intervals throughout each year. Choosing a robust payroll system will help ensure you don’t miss any deadlines or pay fines for noncompliance. You can also simplify compliance by selecting one that already offers built-in reporting tools, document storage features, and other useful functions for maintaining all required records.
5) Accessibility when working remotely
Payroll management can be done on any device with internet access. If you need to work while away from your office, or want to keep an eye on operations while out on a client visit, you’ll appreciate having easy-to-use online payroll software that runs in any web browser. Online programs are ideal for small businesses because they are secure and easily accessed by employees no matter where they are located. Additionally, some programs allow workers to submit timesheets or even time off requests directly through their employee portal.
6) Reduce human error in calculations
Human error can be a source of issues, particularly when dealing with sensitive data. For example, if you have one person doing payroll calculations and that person makes an error in one employee’s pay, all future paychecks will need to be adjusted—not only for that employee but for any other employees who were paid by check. Additionally, if there are clerical errors in an employee’s file, it could take longer than necessary to straighten things out because human memory isn’t as reliable as technology. Payroll mistakes can lead to lost productivity and revenue, not to mention serious penalties from government agencies. A quick way around these issues is through automation. By using online payroll solutions or an automated time clock system, you can reduce or even eliminate human errors.
7) Up-to-date information at all times
Your systems and data should reflect your current business structure. If you work with a large number of contractors, for example, then you need a system that can handle that kind of volume. When you set up a company, whether as a sole trader or as an employee of a larger organization, it’s easy to fall into habits and use processes from previous jobs. But if things aren’t working properly – or not working at all – it can be difficult to identify where they went wrong. Outsourcing a modern payroll service will mean that employees are paid on time and correctly, without errors or omissions – not only saving on fines and penalties but improving productivity too.