Your employees and you may experience contrasting emotions at month’s end. Payday is a good time for employees. It’s a wonderful day. Employers will find it difficult to complete payroll if it isn’t automated. Manually running payroll can lead to sleepless nights, long verification procedures, and more headaches.
Payroll software can help you? Although it can, many business owners don’t know when to use it. They may not prioritize it during growth or feel so comfortable with old processes that they believe the system is working at its best. We’ll be highlighting some signs that your business should use payroll software in this blog.
You’ve hired your first employee
It’s true. When you are starting to hire employees, payroll software is the best time to use it. This software can be used to organize your payroll processes from the beginning and meet compliance requirements as your company grows. You could also eliminate data migration and data transition problems that many businesses face when they wait until later to adopt software.
Avoid manual errors
Payroll mistakes can be costly, and manual errors are common in all types of work. Take the example of Queensland Health replacing its payroll system, which resulted in AU$1.25 million in errors. Or the shocking statistic from the Workforce Institute shows that more than half of Americans have experienced mistakes with their payroll. Payroll software can do the calculations and double-checking to eliminate payroll errors month after month.
Do you want to automate this process
Small Business Trends says that computing payroll taxes takes 5 hours per payday. Business owners value their time, so automating repetitive tasks is a must. Payroll software helps you reach this goal by automatically calculating payroll and tax deductions. Automating repetitive, numbers-based tasks frees up time to do the more human-intensive parts of payroll processing.
Do you want to delegate administrative tasks for payroll
You don’t have to rely on paper for reimbursements, investment proofs or tax-saving IT declarations. It’s time to go digital. These portals allow employees to digitally complete these tasks and decrease the paperwork involved. They are also a popular feature in payroll software. You can also make payroll-related documents accessible to employees whenever they wish, which reduces the number of employee requests to your payroll staff.
You want expert assistance
If you feel you have done all you can to avoid errors, but are not satisfied with the results, seek additional assistance. Small business owners often turn to their accountants for assistance. However, your accountant is only human and may not be able to help with payroll. Instead, focus your attention on payroll software. Software vendors offer specialized customer support teams to help you when you have a problem. They are just a phone call or email away.
Want better visibility of your payroll expenses
Payroll software can do more than automate tax and payroll calculations. You can generate real-time reports that give you full visibility into your tax liabilities and payroll costs. It makes it easy to work with your accountant on the year-end reconciliation by having all the relevant reports in one place.
Want to create frictionless communication between your teams
Many people are involved in the payroll process, including HR, finance, employees, and external accountants. All of these people can work together with payroll software. It eliminates the need to transfer data between different systems. Cloud-based payroll software allows you to future-proof your payroll operations. This makes it easy for your team to keep the process running smoothly, no matter where they are located.
Starting technology early in the payroll process can help your company adopt thebest practices and be more productive. Automating your payroll is not just for the beginning. Here are some other signs you might want to consider when it is time for payroll software. We’ve created a payroll software buying guide to help you choose the best payroll software for your company.