This is a guest post from Kaylee Riley, a content writer for Patriot Software, Inc. At Patriot, she translates tricky payroll and accounting topics into the language of the small business owner.
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Every business wants to advance their operations. Yet, no business wants to spend a plethora of time and money for a miraculous solution. In today’s fast-paced and pixel-obsessed world, there is an ever-increasing demand for solutions that use fewer resources, while increasing productivity and return on investment.
If you’re tired of the headache involved with processing payroll, calculating taxes, and keeping up with regulations, then payroll software might be what you need to transform your business operations.
Save Your Time…
According to SCORE, a nonprofit that helps small businesses through education and mentorship, more than half of small businesses spend 1-5 hours per month on payroll — some businesses use even more time.
Also Read: How to Choose the Right Small Business Software
Imagine your business spends five hours every month to run payroll. By the end of the year, your business would have used over seven days to run payroll. What could you do for your business with an extra workweek and a half?
Running payroll takes precious time. Payroll software can help your business save time. When it comes to processing payroll, you spend a lot of time doing calculations. Payroll software does all the calculations for you. And, not only do these automated calculations save time, they also reduce mathematical errors.
Also Read: 5 Costly Payroll Mistakes Small- and Medium-Sized Businesses Should Avoid
…and Save Your Money
As your business grows, so do payroll costs. Among small businesses, 46 percent spend $101-500 per month on payroll processing.
This is where payroll software comes in. Payroll software can eliminate the need for an accountant or in-house employee dedicated to payroll. Additionally, many software packages guarantee accuracy, so you have less risk of being hit with IRS penalties. Additionally, many businesses save on printing costs because everything is paperless.
Payroll Software: More Than Wages
These days, payroll software doesn’t just calculate employee wages. Many software packages have extra built-in features or add-on options. Below are some additional areas payroll software covers.
Export Reports to Accounting
Payroll is an expense that you must account for in your business records. Payroll software that allows you to export reports reduces time spent on accounting. Additionally, accounting software that integrates with your payroll software creates an automatic expense entry whenever you run payroll, which eliminates duplicate data entry.
Time and Attendance
Tracking when employees are at work is key to running payroll, especially hourly employees. Many payroll software packages include a timekeeping feature that employees use to clock in and out. At the end of each pay period, the software uses the integrated time card to calculate employee wages. You no longer need to calculate and enter employee hours by hand, which reduces expensive errors and saves time.
Employee Self-Service
Employee self-service gives employees control over their payroll information and reduces work for payroll administrators. Each employee has a personal payroll profile where they can see information about their wages, payroll deductions, time-off balance, fringe benefits, and more. Depending on the software you use, employees can make adjustments to their account, upload or download documents, and address their own needs.
Payroll Taxes
Payroll taxes are tricky. Each tax has a different rate. You deduct some taxes from employee wages, while you are responsible for paying other taxes. And, every tax has its own reporting and remittance rules. On top of all that, taxes vary by state. Messing up on payroll taxes can be costly.
If you do not pay the right amount or pay taxes late, the IRS and other organizations can penalize you. Many software packages will calculate and file taxes with guaranteed accuracy, giving you one less thing to worry about.
HR
Many software packages offer additional HR modules as an add-on. You can use HR modules to check employment history, track employee census, store important documents, and manage employee benefits. Integrated HR software suites can streamline your workflow by keeping all your payroll and HR information organized in one place.
Wage Payment Options
Payroll software provides many options to pay your employees, such as handwritten checks, printed checks, direct deposit, and pay cards. With a few clicks, you can pay your employees without switching between different software programs. With everything in one place, you save time and employees can get paid how they prefer.
Let’s Talk about ROI
Payroll software has the potential for a considerable ROI. Payroll software generally requires a low upfront investment and often helps save money when compared to manual payroll processes. As mentioned earlier, payroll software can save you hours a week, which is valuable time you can put toward more strategic business operations. Additionally, you can store all your payroll, HR, and recordkeeping information in one easy-to-access location, which streamlines your workflows.
Many software companies offer a free trial, so you can test the software before committing. With low investment and increased business functionality, payroll software is the key to improving your business operations. For most businesses, the question isn’t if you should invest in payroll software, but when to invest. If manual processes or outdated software is holding your business back, then the time to invest in new payroll software is now.
To learn how to compare payroll software like a pro and choose the best system for your business, download the free guide below.
Top Human Resources Software Recommendations
1 Rippling
Rippling is the first way for businesses to manage all of their HR, IT, and Finance — payroll, benefits, computers, apps, corporate cards, expenses, and more — in one unified workforce platform. By connecting every business system to one source of truth for employee data, businesses can automate all of the manual work they normally need to do to make employee changes.
2 Paycor
Paycor’s HR software modernizes every aspect of people management, which saves leaders time and gives them the powerful analytics they need to build winning teams. Paycor provides a full suite of HCM solutions with a single source of truth for employee data, so users never have to switch platforms, log-in to multiple systems, re-key data or open multiple spreadsheets. Everyday processes become simplified, allowing organizations to focus on their most important work.
3 Darwinbox HR Software
Darwinbox is a unified HRMS platform that lets you manage the complete lifecycle of your employees – from hire to retire. Built for large enterprises, Darwinbox is used by 2M+ users across 700+ global companies such as Mahindra, Tata AIA, More Retail, Adani, Sembcorp, Kopi Kenangan, and more. It is a mobile-first platform that offers self-service capabilities and a great user experience to all your employees.
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