Many companies are transitioning from using manual payroll processes over to managing their payroll using dedicated software. Proponents of the software-based approach claim that making the switch can offer many different advantages, especially to SMBs struggling with their payroll. So, what are the specific advantages payroll software offers that manual processes don’t? Read below to find out!
Arguably the most challenging part of payroll is managing the time required to complete it. Companies with only one or two employees may be able to get by using pen & paper to run their payroll, but this approach quickly becomes impractical as the business expands. With more employees and withholdings to calculate, additional payroll experts will be required to manage your business’s ongoing payroll requirements. Unfortunately, expanding your payroll staff won’t expedite the process whatsoever; if you’re lucky, the time required will stay the same! However, unlike payroll specialists (who are limited as to how fast they can process payroll), dedicated payroll processing software can perform all the necessary calculations almost instantly, turning a week-long job into a ten-minute task!
Hiring additional payroll specialists will rapidly increase your overhead costs, so this is something you’ll surely want to avoid if possible. With manual payroll processing, not hiring additional team members is likely to overwhelm your current staff, leaving tasks behind schedule and riddled with errors. However, by using payroll processing software, you can actually downsize your current payroll staff since the majority of calculations can be performed by the software itself. You will need to pay a monthly subscription for use of the software, but this price is far lower than the cost of employing even one specialist, although you will need to retain a few payroll employees simply to oversee the entire process and manage data entries.
Manual processes rely on well-organized office spaces to function properly. However, even with a solid organization system in place, instant data retrieval is impossible, since folders and file cabinets must be sorted through to find the form in question. This isn’t an issue with small business payroll software though, as your files are stored digitally rather than physically. Finding a specific form takes only seconds using the “Search” function, and since the system automatically organizes data for you, your specialists will have time to attend to other matters at hand.
Protecting Employee Information
Another disadvantage of physical file storage is that the system is easy to steal from. Anyone with access to the office can steal valuable employee PII (Personally Identifiable Information) in seconds, which unfortunately may result in identity theft and potential lawsuits. However, physical theft is impossible if you’re using software solutions, and online payroll service providers have multiple safeguards in place to prevent digital theft from taking place. As long as you limit employee access to data only relevant to their job role, your employee’s PII will be safe and secure within the system.
Enabling Employees to Help Themselves
Small business payroll software companies like UZIO often offer employee self-service options on their platforms. These options include features like access to previous payroll records or digital timesheets for logging hours! Digital timesheets are especially useful if the service provider offers mobile solutions as well since offsite employees can clock in/clock out without needing to return to the office. Having the ability to view past pay stubs is also useful since employees can answer many of their payroll questions without needing to visit the payroll department.
To Automate or Not to Automate?
Automation may not be necessary for the smallest of businesses, but for any company with more than a few employees, the option offers a clear advantage over the alternative. Whether your company struggles to complete payroll calculations on time, has trouble staying within budget, or needs an organizational overhaul, it’s certainly worth transitioning over to using payroll software. With the ability to completely automate the vast majority of your payroll while lowering overhead costs and securely storing important company data, implementing digital payroll solutions throughout your business offers a sure-fire way to instantly improve overall company productivity.
Author Bio: Mohd Sohel Ather is the head of the content marketing; He likes to stay up to date with all things related to technology. A software engineer by profession, Sohel also has a passion for tech blog writing.