“Time is money” you have heard it many times and in any context. When it comes to payroll services “Time lost is money lost”.
Payroll is a game of numbers and the statistics are the true evidence of this. A 2017 survey by National Small Business Association (NSBA) found that one in every 3 business spends more than 80 hours every year in payroll taxes.
One of the main reason why payroll services work for a small business is Convenience. It takes time and efforts and the companies that have just started can’t afford all the resources from the very beginning.
This is where a professional payroll software will save you. With the help of software, you will never miss a payroll period, you will always meet your tax filing deadlines and save a lot of HR hours.
Reasons why buying a payroll software should be the next thing on your mind.
1. Human makes mistakes
Some of the common mistakes that we can make in our day-to-day activities are:
- Enter incorrect hours working on paper timesheets
- Stolen or lost time cards
- Employees forget either to clock-in or clock out for unpaid breaks.
- Even the most meticulous HR managers can make data entry mistakes
All of these can lead to incorrect paychecks. Nobody likes to get paid late or an incorrect amount.
Some employees misuse this liberty and make intentional human errors. Employees can deceive their customers by adding more hours. On the other hand, Supervisors hide overtime to meet the budget goals. Big mistakes on a paycheck can cause huge fines.
There is also an administrative burden in correcting payroll errors. A lot of time is consumed in investigating the error and tracking down the mistake.
A payroll software can solve the problem. There will be fewer errors in the system, which ultimately means time saved, no penalties and happy employees.
2. Missed Deadlines
Business owners have to submit income tax and withholdings. The deadlines for this depends on the business structure and type. You can request a tax extension but still, you have to pay the taxes that are due. Tax extension are quite common these days which is not much advisable as these incur additional fees. Missing deadlines also interrupt cash flow which makes it hard to meet the budget goals. A payroll software will prepare you well in advance to avoid these fees and save money on taxes too.
3. The Late Paychecks
Employees work hard the whole month so that they are paid on time and when there is a delay they lose motivation and that affects the customers.
Missing payroll deadlines means failure to pass the audit. These can result in penalties and other missed deadlines that can sink your business.
A payroll software will not only save your time, but it will also help you avoid audit troubles.
4. Keeps a track of Records for audit and other challenges
Keeping a track of records will save you from audits, false employee accusations, and regulatory penalties.
Your payroll advisor can use these reports to prepare for real-time reports to conduct an audit. You can also use these reports to respond to an employee challenge.
Employee Self-service can also help you manage the payroll by empowering employees.
These help employees to find answers to smaller problems all by themselves before interrupting their busy managers. They can also use historical data to solve a complaint before it converts into an issue.
5. Cash Flow
Cash Flow is like the lifeline of a business and it can sink your business before it gets started.
Without a good cash flow management, your business will starve. Most of the problems start here.
A payroll software with integrated scheduling can help you avoid all these problems. It will save your time and increase the productivity.
6. They are easy to integrate
A payroll software comes with a lot of integration options. They can very easily synchronize with time and attendance tracking software. Whatever your demands are it, will be all fulfilled with a payroll software as it enables you to collaborate with other departments in a way that will reduce the pressure on administrative work and makes all the processes a way too smooth and streamlined.
7. It will save a lot of your time
Endless hours, days and month are spent on tax preparations. Using a Payroll software will not only eliminate the errors in calculations but will also eliminate the errors. A lot of time will be saved which will allow the HR and Finance people focus on the critical task which requires their immediate attention.
Last Piece of Advice
Take proper advice from your payrolls service provider on new laws and regulation. Take full advantage of cloud-based payroll software. Make sure you are always updated with compliance and regulatory reports. Access to real-time data will solve almost every problem. So a payroll software today and change the game of your business.
Hitendra is a Digital Marketing Executive and software analyst at SoftwareSuggest and loves helping people plan, optimize and launch marketing strategies. He has spent the majority of his career in Sathe aS industry gaining experiences in areas such as Accounting Software, Pharmacy Software, and ERP software analysis. While Digital Marketing is his primary job function by day, Hitendra also enjoys spending time with his family and listening to music.