Why do we need a payroll system?

Running a small business is not easy. If you are responsible for everything from the success of the sales force to the efficiency of the back office, it can often seem overwhelming. But that doesn’t have to be the case. There are times when intelligent delegation and strategic decisions can improve your business and enable you to do more. A classic example is managing your payroll.

You can manage the payroll process yourself or delegate the task to an accountant, bookkeeper or confidant. But no matter who is responsible for payroll accounting, there are many advantages to using the accounting software.

Here are 12 major benefits of a payroll system;

1. Avoid errors

Errors in the payroll system can be a nightmare. However, one of the brilliant advantages of using payroll software is that it reduces the likelihood that these costly errors will occur. If you make a mistake that does not take your employees into account, it could lead to a loss of morale and, in bad circumstances, legal problems with you and your company.

If you make a mistake when your employees are overpaid, you can leave your company without enough working capital, and the resulting logistical nightmare for collection could be complicated. The advantage of payroll software is that you can significantly reduce the risk of human error and ensure that your employees receive exactly the salary they deserve.

2. Time-saving

Payroll is not exactly what we would call a fun job, but a necessary job, and chances are payroll managers do not expect to receive monthly payments. The advantages of using payroll software allow you to make their work easier and save them a lot of time that could be better used in other areas of the company.

3. Data security

SecurityThe security of your data is essential and your salary data is particularly sensitive. Payroll files contain personally identifiable information that needs to be protected, such as postal addresses, birth dates, social security numbers, bank account information, etc. By using high-quality payroll software, you can ensure that this information is securely locked and cannot be viewed by anyone outside your organization.

4. No need for expertise

When you use the payroll software, you do not need to have a background in Payroll. This means that you can delegate the payroll task to inexperienced employees, so you do not need to hire a “professional”. This reduces your costs and allows you to provide cross-training in your small business.

The absence of special access or training data is one of the best advantages of payroll software. Instead of wasting time on time-consuming payroll tasks, employees can use their talents elsewhere.

5. Cost-effectiveness

Affordable as a small business owner, you have a legitimate interest in keeping profits high and costs low. By moving from a paper-based payroll system to a more efficient one, you can save a lot of money and invest those resources elsewhere in your small business to help it grow.

The savings you will realize by switching to payroll software will increase as your business grows. With a one-time fee, you can add an unlimited number of companies, employees, and contractors, making the investment smart as your company continues to add new employees. Ultimately, this reduces costs and allows you to take a more strategic approach to manage your small business.

6. Understanding payroll accounting methods

Learning how to perform payroll accounting correctly can be extremely confusing. Especially if you have no training or qualification in accounting. Well, good quality payroll accounting software is specially designed for those who have little or no experience in payroll processing. So the software is intuitive and user-friendly, which helps you to alleviate your anxiety.

7. Precise calculations

The more employees you have, the more paperwork you need to do. The higher the amount, the higher the risk of human error. However, one of the biggest benefits of using payroll software is that it will actually be difficult for you to make mistakes. This is achieved by automating the entire process and comprehensive controls and validation procedures.

8. Exact calculations

You will be surprised how easy it is to miss a tax update. Sometimes it is simply difficult to keep track of everything, especially if these tax updates may go unnoticed until you receive a message from the tax office. If you use payroll software, this will not happen. Indeed, the software immediately informs you of updates and ensures that you are always up to date.

9. Speed

The entire payroll accounting process is significantly accelerated by the use of payroll accounting software. In addition, you can create reports and accounts at the touch of a button. It is not necessary to wait a few hours or days to access important reports. This means that the general business is faster and more efficient.

10. Productivity

Employees can become less productive if they engage in the “traditional” method of paper-based payroll accounting — and we are not surprised why! As a result, your employees become less motivated, less productive and more likely to make mistakes. Payroll software can improve employee morale by paying their salaries accurately and on time.

11. Reliability

The reports generated by the payroll software are both authentic and very accurate. This means that you can rely on the statements generated by the payroll software, including the latest IRS tax updates, which are provided immediately by the software. In this way, you can process the payroll run with absolute security.

12. Ongoing customer support

Another brilliant advantage of using payroll software is that you have access to a real support team. If you have used a paper payroll system, your former payroll specialist may know how the original system works, but what happens if they disappear? Would this result in new training costs or the need to hire a brand new person? When you upgrade to a payroll software system, you benefit from ongoing upgrades and support and get the know-how to use your software.

Conclusion

This way, you can ensure that many employees are trained in the software, which means that when flu season arrives, you don’t have to worry about not having trained staff! In addition to training, customer support can also help solve any problems or problems encountered by the user during the use of the software. It is no longer necessary to “wait” for help and assistance.

It is clear that the benefits of using payroll software are many. Simply put, it can help almost any company streamline their accounting processes and reduce costs. It can also help to massively reduce stress by eliminating the need to perform endless complex calculations by yourself.

Ultimately, this gives you more time to focus on what is important, growing your business. If you are still late, contact us today to switch to CheckMark Payroll. By working with us, you choose fully tested and reliable payroll software that is delivered with a complete support team based in the United States. If you have any further questions about our software, we will be happy to help you.

Looking for an automated Payroll Management system, we suggest you IceHrm which is one of the best HRIS systems which has so many HR functions automated into one system.

IceHrm is a Human resource management system for small and medium-sized organizations. This HRM software centralizes employee data and allows only one authorized person to access it, providing a high level of security. The presence module monitors employee time based on information about insertion and perforation. It covers all the basic HRM needs of a company such as Time Management, Attendance Management, Expense management, leave management, Recruitment management and handling employee information.

Key Features of IceHrm

• Payroll Management
• Time & Attendance Management
• Document Management
• Employee Self Service Management
• Performance Management
• Performance Appraisal
• Benefits Management
• Attendance management
• Email Integration
• Project Management
• Workflow Management
• Dashboard
• Employee Lifecycle Management

Unlike the other popular HRM software, you can use one system for all HRM functions. As the other HRM software tools are designed for specific HRM functions separately, using IceHrm will benefit you to utilize all HRM functions in one software. There are three different editions in IceHrm. Each edition has different features. You have a choice to select which edition will suit your organization according to your HR requirements in the organization. Also, you can purchase the IceHrm software based on the number of employees in your organization.