What are the benefits of payroll software? It simplifies your payroll management process, so you can focus on what you do best–running your business. On top of that, these programs help your business do the following:
No doubt, payroll software is indispensable in today’s hectic business landscape, but how will it really help your company? In this article, we will be discussing the following:
Small companies and large corporations alike find payroll processing to be a difficult aspect of managing a business. If you’ve ever spent hours manually typing payroll data or made to pay penalties because of inaccuracies in your tax filing, there’s a good chance that you dread this task as well.
To ease the difficulty of this task, plenty of businesses opt to outsource the process so that they can free up their time to work on other things. However, for entrepreneurs who are adamant about keeping their financial information within the company or simply prefer a more hands-on approach in terms of their finances, utilizing payroll software programs is a great alternative.
Payroll applications give you the liberty to handle your employees’ salaries in-house without letting it drain your time or energy. It is intended to solve various payroll management woes such as manual processing (23%), accuracy (21%), non-standard processes (17%), and decentralized systems (15%).
These programs solve these pain points using a number of features such as automation tools, direct deposit options, and compliance management solutions. Some programs (check out our payroll software rankings more more info) even have the capability to be integrated with HR systems, accounting systems, or ERP systems to streamline your operations and make document handling faster and more efficient.
Payroll processing platforms are systems built to manage wages, benefits, and deductions and prepare payslips, taxes, and other related documents. These aim to alleviate the optimize payroll management by automating the processes involved in it, maintaining data accuracy, and ensuring compliance. Available as on-premise, SaaS, and cloud-hosted software solutions, payroll programs can be implemented as a standalone system or as part of your ERP, HR, or accounting applications.
Among its key features are:
Calculating wages and preparing taxes can be quite complicated, especially if you have to do everything manually. Remaining compliant with changing rules and regulations makes things all the more complicated. The purpose of payroll software is to alleviate these burdens. However, other than simplifying the complex and time-consuming processes involved in this task, there are other benefits of payroll software. Some of them are the following:
Businesses spend over 80 hours on payroll processing every year. To help you cut down the time you use up managing your employees’ salaries, payroll software are equipped to automate various aspects of the process. From computing wages and deductions to managing tax filing and employer-specific procedures, these platforms are sure to help you reduce accounting workload and allow your accountants or HR personnel to allot time for more attention-demanding tasks.
Apart from making sure that employees are paid correctly and on time, it is also your responsibility as an employer to keep them fully informed about their earnings. By using payroll applications, you can promote transparency in your workplace by giving your staff limited access to the payroll information they need.
Back in 2013, US businesses lost $7 billion in IRS civil penalties due to inaccurate accounting. Plenty of tax and accounting professionals chalked it up to incorrect data input, accidental deletion of custom formulas, and overriding system data–all of which are human errors. Through payroll platforms, you can utilize features that will eliminate manual data input as well as prevent unauthorized users from toggling with your system setup.
Tax rules and regulations change annually, making it difficult for companies to stay up-to-date. To help you ensure that you are compliant with current state and federal laws, most payroll applications come with compliance tools. These monitor changes in tax laws and update you about the modifications, so you no longer have to worry about overlooking any details.
Manual payroll processing is plagued with loopholes that may compromise the security of your business’ confidential data. Using payroll software, you can closely monitor the processes using a dashboard as well as protect your payroll data by making it accessible only through secure channels. This, in turn, helps users prevent file loss, security breaches, and computational anomalies.
Outsourcing your payroll can help you save time and money as well as avoid IRS penalties. However, by doing so, you can lose control of your financial information as well as risk the confidentiality of your data. When you opt to use payroll programs, you can get full control of your data without using up too much time on processing. This way, you won’t need to hire outsiders to handle your payroll.
While the purpose of payroll software is to optimize your accounting process, it also has other perks up its sleeves. Payroll programs often come with online databases wherein you can store your data. This not only helps you lessen the money you spend on ink and paper, but also reduce your office’s carbon footprint.
With payroll software explained, you can now start choosing a platform for your company. There are plenty of programs available on the market. Whether you are looking for a platform that is created specifically for small businesses, a software that focuses solely on payroll management, or one that can handle different systems, you will surely be able to find one that suits your business’ unique needs.
To help you narrow down your options, we have provided an overview of some of the best examples of payroll software on the market. If you are looking for more options, feel free to continue your search by checking out our list of top 20 payroll software solutions.
No matter the size of your company or the industry you are in, payroll is a an essential part of your business. This is why you need to ensure that your payroll process is as optimized as it can be. All you have to do is find a good payroll program that can meet the payroll needs of your company. With a reliable software solution at your disposal, you won’t have to worry about tedious data-input or overwhelming tax rules.
Are you looking for more resources on this topic? Should you want payroll software explained further, take a look at our in-depth article discussing the features and types of payroll platforms. It should give you a better explanation on what these software solutions are and what to expect upon purchasing one.
FinancesOnline is available for free for all business professionals interested in an efficient way to find top-notch SaaS solutions. We are able to keep our service free of charge thanks to cooperation with some of the vendors, who are willing to pay us for traffic and sales opportunities provided by our website. Please note, that FinancesOnline lists all vendors, we’re not limited only to the ones that pay us, and all software providers have an equal opportunity to get featured in our rankings and comparisons, win awards, gather user reviews, all in our effort to give you reliable advice that will enable you to make well-informed purchase decisions.