If you’re running a small business, payroll management software is something you definitely need to consider as part of your management strategy. A number of small businesses have been able to save money and reduce the time spent on payroll-related tasks by automating their payroll processes with this software solution. Take a look at some of the key things you should know about this solution to see if it’s right for your business.
1) Simplify your payroll process
Payroll processing is one of those administrative tasks that nobody looks forward to, but for businesses of all sizes, there’s no way around it. According to Intuit’s latest survey, payroll is seen as one of two most burdensome administrative tasks (the other is managing expenses). Fortunately, there are options available that can make your payroll process easier. A good place to start is by looking at whether you’re able to outsource some or all of your payroll function, or if an integrated payroll service might fit into your budget and business processes better. Depending on how many employees you have and what type of business you operate, anything from managed services with human support through straight-up outsourced solutions are available.
2) Save time and money by staying compliant
As a small business owner, you may think that payroll management software takes up too much time and money. While these factors should be considered, there are plenty of reasons to invest in a payroll system. For example, compliance is an important factor when it comes to keeping your company out of trouble with federal and state agencies. One mistake could lead to hefty fines and legal fees, which can ultimately sink your business if not handled properly. Also consider how much money employees lose each year by not getting paid on time or at all. A payroll management tool can solve these problems and more.
3) Get better visibility into employee pay
Working with a third-party payroll service provider will ensure your employees are paid on time, but using a software solution will provide even more insight into employee pay and benefit tracking. Tracking wages and benefits can be a daunting task for any organization that employs workers across multiple locations. Regardless of whether your payroll is managed in-house or through an outside provider, it’s important to have an easy way to track pay rates, deductions, taxes and other financial data. This makes it easier for you to spot problems early on if salaries don’t match what they should be or if key information is missing from employee records.
4) Increase employee engagement
Staying motivated is tough work. If your employees are unmotivated, they may not be as productive as they could be, which could have a direct impact on your company’s bottom line. A highly engaged employee will be harder working and more creative than an average employee. Fortunately, there are many ways you can increase engagement at your workplace; one simple solution is through improving communication with your employees. Engaged employees want to learn more about their company’s goals and how their work affects those goals; by speaking with them regularly, they will feel like valued members of a team rather than simply workers for hire.
5) Reduce errors
The more people who have their hands on an invoice, check or payment, from start to finish, means there are more opportunities for errors. The goal of your payroll management software is to reduce these errors as much as possible. Some programs will do it automatically by enabling direct deposit and processing payroll taxes automatically for you. Others have an extensive set of reports that let you take care of audits with ease. It all depends on how heavily regulated your industry is and what your needs are as a business owner.
6) Reduce stress associated with handling payroll
For many small business owners, payroll is one of their most stressful tasks. The stress of dealing with monthly employees, distributing checks, and making sure everything is done on time can be overwhelming for some. Although there may not be an easy way to completely eliminate all anxiety surrounding payroll but using automated payroll software can make your work a lot easier and a lot of stress-related to payroll may be decreased.
7) Become more valuable to your organization
The company has invested a lot of time and money in your training, so take advantage of it. In other words, if it’s important to your organization, it should be important to you. The more valuable you are—the more critical your input and insight is—the more valued an employee you become. Not only will that increase your pay down the road, but it could also result in perks like getting bumped up to first-class when traveling for work or getting picked up at home when driving back from a business trip. If you’re not moving forward professionally, ask yourself why: Maybe it’s because you haven’t put yourself out there enough.
8) Eliminate the need for internal resources
Just because your firm is small or medium-sized doesn’t mean it can’t afford payroll management software. Some of these programs are even designed for organizations with fewer than 50 employees. By eliminating an internal resource, they also eliminate some of your operating costs while streamlining your compliance needs. The importance of proper checks and balances: One of your most important duties as a business owner—regardless of size—is ensuring that your financial operations have proper checks and balances in place to avoid mistakes and fraud. No matter what happens, you want a reliable payroll system in place so you can review all documents at a moment’s notice.