Running a small business isn’t easy. When you are responsible for everything from the success of the sales force, to the efficiency of the back office, it can often feel overwhelming. But, it doesn’t need to be this way. There are times when smart delegation and strategic decision making can improve your business and allow you to get more done. The management of your payroll is a classic example.
You could handle the payroll process yourself, or delegate the task to an accountant, bookkeeper or a trusted employee. But, regardless of who is in charge of the payroll, there are numerous benefits of using payroll software to get it done.
Below we discuss 12 of the biggest benefits of using payroll software for your small business.
1. Avoid Making Mistakes
Mistakes in the payroll system can be a nightmare. However, one of the brilliant benefits of using payroll software is that it reduces the chances of those costly errors occurring. If you make an error that short-changes your employees, it could have a detriment on morale and in bad circumstances, lead to legal issues with your firm and you.
If you make a mistake that sees your workers being paid too much, you could leave your business without enough working capital and the logistical nightmare that would bring for reobtaining could be complicated. The advantage of payroll software means you can greatly reduce the risk of human error and ensure that your employees get the exact pay they have earned.
Payroll isn’t exactly what we would call a fun job, rather it’s a necessary one, and chances are those in charge of the payroll probably don’t look forward to the monthly payroll reconciliation. The benefits of using payroll software mean you can help make their task easier and save them a vast amount of time, which could be better spent on other areas of the business.
3. Data Security
The security of your data is imperative and your payroll data is particularly sensitive. The payroll files will contain personal information that needs protection, such as mailing addresses, dates of birth, Social Security Number, bank details etc. By using good quality payroll software, you can ensure this information is securely locked down and cannot be accessed by anyone outside of your organization.
4. No Need for Expertise
When it comes to using payroll software, there is no need to have a background in payroll. This means you can delegate the payroll task to employees who have no experience, thus removing the need to hire a “professional”. This will, in turn, lower your costs and make it possible for cross-training within your small business.
Not needing specialized credentials or training is one of the best benefits of payroll software. Rather wasting time on tedious payroll tasks, staff can use their talents elsewhere.
As a small business owner, you will have vested interest in keeping profits high and costs low. By making the switch from a paper-based payroll processing system to a more efficient payroll software system can save you vasts amounts of money and allow these funds to be invested elsewhere in your small business to help it expand and succeed.
The cost savings you gain from the switch to payroll software will increase as your business grows. With a one-time fee, you can add unlimited companies, payrolls, and employees, making the investment a smart one as your firm continues to add new workers. In the end, this results in lower costs and a more strategic approach to running your small business.
6. Understanding Payroll Methods
Learning how to properly perform payroll accounting can be extremely confusing. Especially if you have no formal accounting training or qualifications. Well, good quality payroll software is designed specifically for those who have little to no experience with handling payroll. As such, the software is intuitive and user-friendly helping to relieve your anguish.
7. Accurate Calculations
As the number of your employees rises, so will the paperwork that needs to be done. The higher the quantity, the higher the risk of human error. However, one of the greatest benefits of using payroll software is that you will find it’s actually difficult to make mistakes. That is thanks to the automation of the entire process and to the comprehensive validation checks and procedures.
8. Accurate Calculations
You’d be surprised at how easy it is to miss a tax update. Sometimes it’s just difficult to keep track of absolutely everything, especially when those tax updates can go unnoticed until you’ve received a notice from the tax office. When you use payroll software, this won’t happen. That’s because the software will alert you about the updates instantly, ensuring you are always in the loop.
The entire process of preparing payroll becomes much quicker when you make use of payroll software. Furthermore, you can instantly prepare reports and statements with the single click of a button. There is no need to wait for a couple of hours or days to access important reports. This means general business can move quicker, creating more efficiency.
Employees can become less productive when engaging in the “traditional” way of managing payroll on paper – and we aren’t surprised why! This will lead to your employees becoming less motivated and productive, and again more likely to make errors. Payroll software can boost the morale of employees when the salary is paid to them accurately and on time.
The reports that are generated by payroll software are both authentic and highly accurate. This means that you can rely on those statements that are prepared by payroll software, including the latest tax updates from the IRS; these are made available by the software instantly. This allows you to process payroll with complete peace of mind.
12. Ongoing Customer Support
Another brilliant benefit of using payroll software is the fact you have access to an actual support team. If you used a paper-based payroll system, your previous payroll specialist may know the workings of the original system, but what happens if they go? Would that incur new training costs or the need to employ a brand new person? When you upgrade to a payroll software system, you will benefit from ongoing upgrades and support and you will be provided with the know-how to operate your software.
This way, you can ensure several employees are trained in the software meaning when flu season arrives, you don’t need to worry about not having trained staff! In addition to this, alongside training, customer support can also help resolve any issues or problems experienced by the user while they are using the software. This takes away the need to “wait around” for help and assistance.
It’s clear to see that the benefits of using payroll software are numerous. In simple terms, it can help almost all businesses to streamline their accounting processes and reduce costs. It can also help to massively reduce stress by removing the need to perform endless complex calculations all by yourself.
Ultimately, this frees up more time for you to focus on what is important, growing your business. If you’re still behind the time, then get in touch today to make the switch to CheckMark Payroll. By working with us, you’re choosing a fully-tested and reliable payroll software that comes with a complete US-based support team. If you have any more questions about our software, then we will be happy to help.