Many small business owners operate under a DIY mindset, and whilst that is admirable, you’re often far better off sitting back and letting technology take care of tasks for you. This is certainly the case when it comes to payroll. Let’s take a look at six reasons why you should switch to payroll software.
What is Payroll Management Software?
A payroll management system is a software program that will take care of your payroll for you. This software will automate the process of withholding your employees’ earnings for tax, saving you a lot of time. You enter data into the system and it works out how much you owe and to whom, then ensures that all of the money ends up in the right place. This is much simpler than doing it all yourself.
Do I Really Need Payroll Software?
If you pay employees or yourself as an employee, then you can benefit from using payroll software. Even if your employees don’t make enough to pay taxes, it’s still worth using payroll software to ensure that they are getting paid correctly and on time.
Benefit #1 – Save Time
Tax calculations are complex and time-consuming, but payroll software does them for you. This frees up your time to get back to running and growing your small business, rather than getting bogged down in mathematics.
Benefit #2 – Accuracy
Payroll software automates calculations for you, significantly reducing your margin of error. Mistakes on payroll can result in unhappy employees and harsh penalties, so it’s best not to risk it.
Benefit #3 – Compliance
Tax rules and regulations change all the time and it can be exhausting to try and keep up. Fortunately, a quality payroll software program will keep up-to-date with these changes and automatically apply them so that all calculations remain correct.
Benefit #4 – Staff Satisfaction
Making payroll mistakes is a surefire way to antagonise your employees. Payroll mistakes will most likely be followed by a decline in morale and, if it becomes a recurring issue, a high staff turnover rate. Payroll software ensures that your employees will get paid the right amount, at the right time and thus keeps them happy. It also means that you won’t have to waste time fixing errors that could have been easily avoided in the first place.
Benefit #5 – Easier Year End
Payroll software can save you a lot of time and stress when the end of the year rolls round. Your payroll software will keep organised records and allow you to find exactly what you’re looking for in a matter of seconds, instead of spending hours sifting through mountains of paperwork,
How to Choose the Right Payroll Software
There are several great payroll softwares out there. You should carefully consider your options before settling on one program. Factors to consider include:
- What do you need? Make a list of the key capabilities you require so that you don’t end up missing out, or paying extra for features that are of little use to you.
- Price and payment structure. There are different types of payment structures available, so think about which one will prove most cost-effective for you.
- You should choose a software program that integrates well with other systems that you use.
Using payroll software can save you time, money and a huge headache. It is a big step towards being more organised and diligent with your accounting, with no extra effort on your part – in fact, this software will make payroll easier than ever. If in doubt about which software is right for you, speak to your accountant and ask for their recommendations.