Payroll software has been a crucial part of modern large businesses for more than a decade now and its significance in the industry is growing day by day. However, when it comes to small companies, they are reluctant to make the jump on the presumption that such software is hard to maintain or are too costly for a small business. Some even assume that they do not require payroll software as they are currently able to manage without any dedicated payroll software. However, one needs to experience the convenience and other benefits offered by having dedicated payroll software to appreciate its significance for a small business. If you are still not convinced, let us take a closer look at five ways payroll software adds value for your small business…
1. Saves Time
Being a small business, you would be practically experiencing the old saying, ‘time is money’, in your daily business. The main advantage of having payroll software is the same, as it helps in saving time by performing the payroll calculations for you. Similarly, it also helps in simplifying the process of tax calculations and payroll disbursal. Having these options automated helps you in spending more time expanding your business rather than worrying about the payroll of your employees.
2. Automates Compliance
When it comes to statutory compliances, small businesses struggle with it especially with the different kinds of laws prevalent in different countries. In such a scenario, having a dedicated payroll software helps in keeping with the updates and changes in these laws since the software vendor will update their software to take into account the new changes as well. Modern cloud-based payroll software makes statutory compliance updates so transparent that you might not even know about the new changes if you aren’t already aware of them.
3. Ensures Accuracy
Without payroll software, most small businesses use spreadsheets and other manual methods to maintain their records. Some companies even use accounting software for their bookkeeping. However, if you are using any such manual methods, there is always a crucial factor of error that cannot be ruled out: the human factor. This is where having a dedicated payroll solution again comes to your rescue by automating most of the mundane payroll-related tasks. Since payroll is such an important aspect of the overall work experience of your employees, it is vital that it is undertaken with utmost precision and payroll software does it without unparalleled accuracy.
4. Manages Salaries
Managing the salaries of your employees is another aspect which the payroll software takes care of for you. Being a small business, you must be occupied with expanding the company while also maintaining the various company expenditures. However, you also need to ensure that your employees are being paid as per the existing laws and on time. Having a payroll solution takes care of this worry by showing you the data at your fingertips. This will help you in taking necessary decisions as well as curbing any unnecessary expenditure.
5. Safeguards Data
Nowadays, all major trustworthy payroll software comes with high-level data encryption which ensures that your data is safe and secure. Hence, consider getting a well-renowned software that has at least 128-bit encryption, which provides an extra layer of security over the standard protection provided by passwords and firewalls. Since your software vendor would be managing the database on your behalf, it is also crucial to make sure that they are following the best practices in the industry, which will help you understand that they are dependable.
In conclusion, one can understand that having payroll software greatly helps in streamlining payroll management. It not only reduces the time and efforts required in calculating and distributing the salaries but also makes sure that the amount being paid is accurate and is statutory compliant. All of these tasks would need to be cross-verified manually in the absence of dedicated payroll software. Moreover, with the convenience provided by this software, you can be at peace knowing that your employees are happy with their salaries and put further efforts into expanding the company.
John Paul Davis is a content writer with Pocket HRMS, an innovative cloud-based HR software provider in India with over a decade of loyal clientele. His handiwork usually reflects the latest technologies in the HR domain.