Streamlining the Process: 4 Benefits of Using a Payroll System

Spreadsheets have their places, but more specialized, sophisticated software systems often make things a lot easier. The more complicated and important the matter to be addressed, the more likely it becomes that a software tool designed specifically to handle it will be worth adopting.

Some business owners and managers, for example, waste years trying to stay on top of payroll with systems and processes that are poorly suited to the work. Adopting a high-quality payroll system instead will produce impressive benefits in just about every case.

Many successful businesses arise from origins such that relatively informal, off-the-cuff solutions to problems once seemed good enough. An entrepreneur who finally reaches the point of hiring a first employee, for instance, might not see the wisdom in deploying an established payroll system at the same time.

That could be fine for a while, but it can easily lead to problems further down the road. Add even a few more workers to a growing business, and what once took only a bit of extra time can become a productivity-sapping sinkhole.

Providers of Payroll Services frequently recommend that their clients switch to payroll-specific software systems as a first step. That will always make it easier to leverage the benefits that such a partner can deliver, and it will normally produce a number of other significant advantages, as well. Most often, companies that replaced ad-hoc arrangements with specialized payroll systems tend to experience improved:

Efficiency.

Manually keeping track of hours worked and corresponding wages is always tedious and slow. Many business owners spend hours each week laboriously recording simple figures and working through uninteresting, routine, payroll-related calculations. A system designed to facilitate payroll will always have features that make the required work a lot more efficient. Whether that means integrating with other software in order to automate the calculation of payroll totals or something else entirely, heightened efficiency will almost always be welcome. This is just as true of companies that employ payroll clerks as for smaller ones where the owner or a manager handles the related duties.

Accuracy.

Mistakes made when seeing to payroll can irritate and impose upon employees, which will rarely be to the benefit of an employer. Frequent-enough errors can even expose a company to penalties imposed by state or federal taxation authorities. Payroll systems that are designed to prevent such problems can pay for themselves quite quickly. Even just the sanity checks included in many such software platforms will virtually rule out entire classes of potential errors. Becoming more confident in the accuracy of payroll-related numbers and calculations will always contribute to peace of mind.

Analytics.

Every company’s payroll says a great deal about its situation, competitiveness, and prospects. Few businesses that rely upon informal, cobbled-together payroll processes, though, ever become privy to this potentially valuable information. Modern payroll software systems quite often feature functions that allow them to provide in-depth analytics of various interesting kinds. Simply putting such a system into service can enable access to entirely new types of useful data.

Timeliness.

 If there is one employment-related issue that is apt to concern workers more than any other, it is a paycheck or direct deposit that fails to show up when expected. While such issues can sometimes signal trouble, there are often less-ominous explanations. Business owners occasionally get so bogged down in other things that they fail to finish up payroll on time. Having access to a system that makes everything a lot easier will help keep things on schedule. Benefits like these four and others almost always combine to make the adoption of a specialized payroll system worthwhile. That one move can set a company up to succeed at payroll-related work more than almost any other.

Print Friendly, PDF & Email

About Dequiana Jackson

Dequiana Jackson, Founder of Inspired Marketing, Inc., helps overachieving women entrepreneurs conquer limiting beliefs and create marketing plans that win. This includes one-on-one marketing plan development, digital product creation, web design and content marketing. Dequiana is the author of Know Your Business: How to Attract Ideal Clients & Sell More and runs the award-winning blog, Entrepreneur-Resources.net.

Check Also

Ethical Issues to Consider in Psychological Assessments

Testing is used in all aspects of education, but when it comes to psychological testing …

One comment

  1. While the process varies from company to company, payroll is indisputably complicated. It requires an organized system, knowledge of current regulations and taxes, and careful planning.

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge