“Time is money.” You have heard it many times and in many contexts. When it comes to payroll services though, “Time lost is money lost.”
Payroll is a game of numbers and the statistics are the true evidence of this. A 2017 survey by the National Small Business Association (NSBA) found that one in every 3 businesses spends more than 80 hours per year on payroll taxes.
One of the main reasons why payroll services work for small businesses is convenience. It takes time and effort, and start-ups can’t always afford to split these resources at the beginning.
This is where a professional payroll software will save you. With the help of software, you will never miss a payroll period, always meet your tax filing deadlines and save a lot of HR hours.
7 Reasons Why Buying a Payroll Software Should Be The Next Thing On Your Mind
1) Humans make mistakes
Some of the common mistakes that we can make in our day-to-day activities are:
- Enter incorrect hours working on paper timesheets
- Steal or lose time cards
- Forget to either clock-in or clock out for unpaid breaks
- Make data entry mistakes (This can happen to the most meticulous HR manager)
All of these can lead to incorrect paychecks. Nobody likes to get paid late or an incorrect amount. Also, some employees make intentional human errors by adding more billable hours to customer projects than used, while supervisors may hide overtime to meet budget goals. Big mistakes on a paycheck can cause huge fines. There is also an administrative burden in tracking down and correcting payroll errors.
A payroll software can solve this problem. There will be fewer errors in the system, which ultimately means time saved, no penalties and happy employees.
2) Missed Deadlines
Business owners have to submit income tax and withholding. The deadlines for this depends on the business structure and type. You can request a tax extension but still, you have to pay the taxes that are due. Tax extensions are quite common these days, though these incur additional fees. Missing deadlines also interrupts cash flow, making it hard to meet budget goals. A payroll software will prepare you well in advance to avoid these fees and save money on taxes, too.
3) Late Paychecks
Employees work hard so that they are paid on time. When there is a delay, they lose motivation. This affects customer service and ultimately your bottom line.
Missing payroll deadlines also means failure to pass the audit. This can result in penalties and other missed deadlines that can sink your business.
A payroll software will not only save your time, but it will also help you avoid audit troubles.
4) Keeps a track of records for audit and other challenges
Keeping a track of records will save you from audits, false employee accusations, and regulatory penalties.
Your payroll adviser can use these reports to prepare for real-time reports to conduct an audit. You can also use these reports to respond to an employee challenge.
Employee self-service can also help you manage the payroll by empowering employees.
This helps employees find answers to smaller problems all by themselves before interrupting their busy managers. They can also use historical data to solve a complaint before it converts into a larger issue.
5) Cash Flow
Cash flow is like the lifeline of a business. It can sink your business before it gets started.
Without good cash flow management, your business will starve. Most of the problems start here.
A payroll software with integrated scheduling can help you avoid all these problems. It will save you time and increase productivity.
6) They are easy to integrate
Payroll software comes with a lot of integration options. They can very easily synchronize with time and attendance tracking software. Whatever your demands are, it will be fulfilled with a payroll software, as it enables you to collaborate with other departments in a way that will reduce the pressure on administrative work and make the processes smooth and streamlined.
7) It will save a lot of your time
Endless hours, days and month are spent on tax preparations. Using a payroll software will not only eliminate the errors in calculations but will also eliminate other errors as well. A lot of time will be saved which will allow the HR and Finance people time to focus on other tasks.
Last piece of advice
Take proper advice from your payroll service provider on new laws and regulations. Take full advantage of cloud-based payroll software. Make sure you are always updated with compliance and regulatory reports. Access to real-time data will solve almost every problem in this regard. So, purchase payroll software today, and change the game of your business.