Janet owns a small business with 20 employees and does not have a dedicated payroll team. So in addition to managing the business, she has to spend hours tracking work hours, calculating wages, and making deductions so much that she wished there was an easy way out.
As a business owner, you’d probably be able to relate to Janet’s struggles and deal with;
- Errors in payroll calculation
- Spending long hours crunching numbers on excel
- Dealing with a whole lot of complex data
- Fined for failing to satisfy compliance requirements
Processing payroll manually requires a lot of effort, time, rechecks, and risk of errors. While large organizations can get a team dedicated to payment processing, this might not be feasible for a small business like yours looking to save costs.
If you’re a small business looking for a way to pay your employees on time and optimize your payroll processing, then automation is your best bet. As a people operations solutions provider that has worked with multiple small and medium-sized businesses as well as large organizations, of all the business tips we have provided, automated HR solutions provider payroll processing remains one of the best due to the many benefits it offers to both employers and employees.
Automated payroll processing is a must-have for your business because not only does it save costs, it’s 5x faster than processing it manually. In this article, we would be discussing several benefits intended to help you get started right away. Let’s begin!
What is Automated Payroll Processing?
Automated payroll essentially means using software to process employee payments and benefits faster and more efficiently. With an automated payroll system, business owners can focus on other important matters involved in running the business instead of spending long hours processing payroll manually.
Payroll software reduces the time you spend manually calculating your employee’s wages by limiting the likelihood of errors from entering data manually. It offers an easier way for small business owners like Janet to manage employee information, and compliance information and ensure wages are paid promptly. Here’s what automated payroll software can do for you
- Help limit the errors of manual data entry.
- Calculate deductions and overtime rates
- Satisfy compliance requirements and many more
What are the Benefits of Using an Automated Payroll Processing System
It is no news that these payroll automation products come at a cost. However, considering how much they can make your life better and save you time, they are surely worth a try. If you’re still struggling with deciding whether or not to consider automated payroll processing, the following benefits are worth considering;
Save time and costs
Manual payroll processing involves a lot of work. From collecting and inputting data to calculating deductions, it is a labor-intensive exercise that requires a lot of time and effort. For a small business, you might not have the resources to put someone in charge of that and have to handle the work yourself. Automated payroll offers a faster and easier way to get the job done. Although it comes with its costs, you’d be better off than having to hire someone for the task or pay fines for noncompliance. If you can save payroll costs and get it done faster and better, why not give it a shot?
Employees love to be paid on time. With the rising inflation rate at 21.82% according to the National Bureau of Statistics, the worst thing any employee would want to experience is delay or mixups in their paychecks and these sorts of errors are inevitable when payrolls are processed manually- after all we’re not perfect as humans. But with automated payrolls, you would hardly expect these sorts of errors as these systems have quality checks inbuilt into them and you would certainly experience increased payroll accuracy.
Therefore, instead of spending most of your time on mundane tasks that end up with an error in most cases, focus on investing in an automated payroll system that guarantees payroll accuracy and directs your attention to more important work.
Safety and security
Employees’ personal and financial information used in payroll processes are confidential and should be protected at all costs. However manual processing using excel documents stands the risk of being lost or compromised. With automated payroll software, this would be the least of your worries as they are built using top security protocols and encryption technologies as well as a cloud-based backup to ensure that no employee’s information is not lost or compromised.
Most payroll software integrates with your business’ hr software and stores all your employee’s information including wages and hours in one place, allowing for easy access. This can help improve your operation making it more seamless and efficient. Additionally, since all information is stored in the cloud, you can easily access all of this data, and configure access to only a select few to view and make changes.
Win-Win for you and your employees
While automated payroll can help improve your business operation efficiency, did you also know that it can be an incentive to your employees also?
With its integration into your human resources system, employees can access basic information such as their paid work time, attendance, and many more. It also enables them to view their paychecks and update their information when the need arises.
If you started reading this article wondering whether or not you should consider it for your business, at this point, you have more than enough reasons to consider an automated payroll system. Whether you’re a new business and you want to know what method to adopt or you’ve been using the manual method for a while, you can get started immediately. While there are lots of integrated payroll processing products to choose from, you’d find one that suits your budget and business peculiarities like our payroll processing product. If automation is important to your business at this point— let’s talk. If not, feel free to come back for more business tips.