Managing payroll can be a time consuming, laborious task. Especially if you’re relying on outdated tools like Excel to do all the work. Excel spreadsheets rely on manual updates to stay relevant and these data capturing tasks are repetitive, tedious and prone to human error.
Given the administrative headache of manual payroll processes, many large corporations outsource their payroll. Smaller businesses with limited resources don’t always have that option. Nonetheless, as a small business owner or payroll manager you can simplify your payroll processes and human resources (HR) management with the right technology.
Here are the four main business benefits of payroll software:
- More time
Manual payroll management takes time. Tasks such as uploading and updating data, and complex, iterative calculations use up many valuable hours. One of the most significant benefits of cloud payroll software is that it manages these repetitive administrative tasks for you. This gives you more time to focus on business critical tasks like succession planning and crafting expansion strategies.
- Lower costs
Time is money. The less time you spend on basic administration, the more money you’ll save. In fact, you can now allocate the extra time to billable work which means you’ll actually make your company more money.
Have you also considered how your current IT needs may be costing you money unnecessarily? All software updates, troubleshooting, customisations, maintenance, integrations and security management requirements require payment and these fees will add up quickly.
In comparison, a cloud-based payroll system will be consistently updated and maintained by the provider at no extra cost.
- Minimal mistakes
A manually managed business payroll system is prone to human error. You could, for example, miss an important detail and calculate your company tax incorrectly or overpay your employees. Either mistake will create a serious payroll headache that will cost you more time – and thus, more money.
Another aspect that is susceptible to human error is compliance. If you are using a manual solution to ensure legislative compliance then you need to regularly update tax tables and consistently test your spreadsheet’s formulas. It’s a time-consuming and error prone process – but don’t worry, you don’t have to be a tax expert to keep your company’s payroll compliant!
Automated payroll software can take care of your tax calculations and administration for you – and greatly reduce the risk of serious errors.
- The ability to expand
If you’re struggling to manage your payroll at your current business size, you may be reluctant to hire more people as you don’t have the capacity to manage them.
One of the most important benefits of payroll software is that it’s scalable. You can easily add new employees as and when you need to, without it creating extra work for yourself. What’s more, a cross border payroll solution enables you to expand into new countries without having to worry about your payroll keeping up – it will keep pace with your needs automatically.
As a small business owner or payroll manager, managing your payroll manually may have been the most logical solution when your company first launched. Times have changed, and so has technology. Don’t let your payroll processes become a time-consuming headache. Invest in cloud-based payroll technology and use your time and resources to grow your business.