Payroll is a business-critical operation for every organisation.
However, regardless of business size, payroll processing can be rough, time-consuming and more complicated as the number of employees increases.
This makes mistakes like entering incorrect data quite frequent, leading to miscalculations and, as a result, attracting non-compliance penalties.
Addressing these challenges often involves switching from manual to automated payroll solutions, which can significantly streamline the process of payroll management and ensure that payroll is processed correctly.
No doubt, a payroll software will save you from stress. However, a question employers and Payroll Managers will ask at some point is if they need payroll software.
This article speaks about the significant benefits of using Payroll Software but first, let us look at what a payroll software is.
What is Payroll Software?
It’s an application used to manage, maintain and automate employee payments in an organisation. An automated payroll uses programmed functions that compile and calculate an employee’s payroll online on a secured platform.
Cloud-based payroll software can store all employees’ data safely on a secured server or cloud system that can be accessed whenever required through a laptop or smartphone browser, or mobile applications.
Using the right payroll software can reduce the manual effort needed from your payroll team. All that is required is inputing all the required employee information such as payment details, packages and documents, and the application will begin processing your payroll immediately.
The software will organise the whole data set into columns and structures that calculate the payment due for each employee, including the taxes and other statutory costs. This process eases monthly payroll reconciliation, thus increasing employee satisfaction and motivation.
Now let’s dive deeper into the major benefits of using payroll software for your business.
5 Major Benefits of Using Payroll Software
Benefits of using payroll software #1 — Error-Free Calculations
Payroll errors can be discouraging. As the number of your employees in your organisation rises, so will the paperwork that needs to be done. The higher the number of employees, the higher the risk of human error.
However, one of the significant benefits of using payroll software is that it reduces the chances of those costly errors occurring. This is thanks to the automation of the entire process and the comprehensive validation checks and procedures.
Suppose your payroll team makes an error that short-changes your employees. In that case, it could negatively affect employee morale and, in dire circumstances, lead to compliance issues that can attract legal penalties.
In addition, if an error occurs that leads to your employees being paid above the required amount, you could leave your business without enough working capital. The logistical bottlenecks that would be required for retrieving the excess pay could be complicated. The advantage of a payroll software means you can significantly reduce errors and ensure that all employees get the exact pay they have earned.
Benefits of using payroll software #2 — Saving time
Payroll isn’t precisely what we would think of as a fun job. But instead, it’s necessary, and the chances are that individuals in charge of the payroll most likely don’t look forward to the monthly payroll reconciliations.
With efficient payroll software, you can help make their task easier and save them a vast amount of time, which is better spent on other business areas. An efficient payroll system reduces time-consuming and monotonous tasks to the barest minimum.
In addition, the consolidated database helps save time and energy that would have been wasted on retrieving data and entering the same many times.
Again, some employees are paid hourly for service rendered; manually adding up timesheets can be time-consuming; however, hours worked can be run within a short time frame with an automated payroll.
A computerised payroll system integrated with your time and attendance software allows employees to enter their time card information. This data is then automatically transferred to your software.
Benefits of using payroll software #3 — Data Security
The security of your organisation’s data is crucial, and your payroll data is susceptible. For example, an organisation’s payroll files will contain personal information that needs protection, such as mailing addresses, dates of birth, Social Security numbers, bank details, etc.
Using good quality payroll software ensures this information is securely locked down and cannot be accessed by anyone outside your organisation.
In addition, with efficient payroll software, an HR manager can monitor actions taken on the system so that the data is protected and the possibility of internal fraud is checked.
Benefits of using payroll software #4 — No Need for Expertise
Running payroll can be challenging for a person without a background in accounting. However, a payroll software significantly lessens the learning curve, making payroll processing way more effortless.
When using payroll software, there is no need to have a background in payroll. That means you can assign the payroll task to employees who do not have accounting backgrounds, lowering your costs and making cross-training possible within your business.
Not needing specialised certifications or training is one of the best benefits of using payroll software. Rather than wasting time on tedious payroll tasks, staff can use their talent elsewhere.
Benefits of using payroll software #5 — A single platform with multiple functionalities
An efficient payroll system can perform multiple functions on a single platform of the organisation. These functions include HR, accounting, customer relationship management, order management, and inventory. All these are run on one platform, i.e., the Payroll software, which provides valuable information with the help of the built-in database.
It is clear to see that the benefits of using payroll software are numerous. In simple terms, it can help businesses streamline their accounting processes and reduce overall costs.
Using payroll software can also help to significantly reduce your employees’ stress by eliminating the need for them to perform endless complex calculations manually. Ultimately, this will free up more time for you and your employees to focus on what is important, growing your business.
If you’re still stuck using manual methods for managing payroll, get in touch with us today to learn more about how payroll software can benefit your business.