We live in an automation era, and some companies are still stuck with those time-consuming, complicated tools for payroll processing. This is certainly because employers and HR managers are just comfortable working with outdated tools and do not want to leave that comfort zone.
Are you one of them? If YES, you are missing ample benefits.
It is no news that a good number of organizations have focused on the Digital Transformation movement in recent years, especially in the wake of the pandemic. The payroll management process has also been impacted by this transformation.
In the past two years, more and more companies have taken a step ahead and relied on payroll software to simplify the process. Need to mention, such systems will slowly become a necessity in the coming years.
All that said, let’s dive into the blog and learn everything about payroll software, from meaning to its importance.
Different companies use different systems for their payroll processing. Out of all, here are the top four types you must be aware of:
In-house payroll is mostly used by small and medium-sized enterprises (SMEs) since they have a limited headcount.
Here are some of the top reasons why companies prefer in-house payroll:
However, the biggest problem with in-house payroll is that it is not 100% compliant and accurate.
Organizations with a lack of expertise and resources opt for a bookkeeper or CPA to handle and process payroll.
Take a look at the top reasons why people rely on a bookkeeper or CPA:
Yet, giving payroll data to an outsider is always a risk. Not to forget, s/he may not understand how your company works and will require assistance to know the same. This, in turn, can waste a lot of time.
Most people confuse this type of payroll with the bookkeeper/CPA; however, they are entirely different from one another.
In agency managed payroll, you can get your hands on a company (not an individual) that will specifically process and manage your payroll.
Now, here are some of the reasons people choose agency managed payroll:
As we mentioned earlier, sharing payroll data with a third party always involves a risk factor. Also, not every company can afford agency managed payroll as they are usually costly.
This is an emerging option in the business world.
As the name suggests, it is a tool/software/system that is designed to help companies manage and process their payroll.
Unlike traditional systems, it completes most payroll operations on its own. That means HR professionals can leave everything on the software and sit back & relax!
Here are the top reasons why companies are choosing payroll software over other payroll tools/systems:
Without a doubt, payroll management software reaps ample benefits to a company, be it small, medium, or large.
If done manually, HR executives will have to spend hours/days on the following steps:
When it comes to payroll management systems, HR managers can carry out the aforementioned processes and more in just a few clicks.
That means HR professionals will no longer have to juggle with files/documents or jump from one spreadsheet to another.
Now that you have got a clear understanding of payroll management software, let’s learn why is it high time for you to invest in one such system:
Needless to say, payroll processing is one of the most critical human resources operations.
Automating and streamlining the process can not just save time but also improve the bottom line of your business to a greater extent.
Manually tracking attendance for payroll processing is way too expensive.
At the same time, manual payroll management is always prone to human errors, which again can cost a considerable amount of money.
Also, manual payroll management requires a lot of human effort. That means companies will have to spend money on hiring more resources.
The one and only solution to all these challenges is a payroll system. A good payroll management system can cut down all unnecessary payroll-related costs in an organization.
We all know that non-compliance issues usually lead to hefty fines and lawsuits. Fortunately, payroll software even takes care of it.
Using such systems, HR managers will never have to worry about non-compliance. The payroll management software will carry out the whole payroll process with utmost accuracy and compliance.
Payroll software allows employees to download their salary slips on their own, edit their details, check their payroll-related information and much more.
This way, companies can not just ensure higher transparency but also autonomy among employees.
As a result, employees will feel more happy, more empowered, and more engaged along the way.
At the end of the day, the whole vision of implementing a payroll processing system is to aid HR professionals.
With an automated payroll system, HR managers can do every payroll-related task effortlessly. This in turn will keep them productive in the long run.
You now have a number of good and strong reasons to automate your payroll processing.
Therefore, do not hesitate to get out of your comfort zone and stay ahead of the game with automated payroll software.
Just Go For it!!