Benefits of Using a Payroll Management Software for your Business

Anjul Singh

13 Sep, 2022

Giving 100% is the only secret recipe for any successful business process. So, the Human Resource (HR) Managers do everything to excel in the resource management of businesses. This might sound exciting, but the work of an HR manager is tiring, especially if the traditional work and manual payroll systems with spreadsheets and piled-up papers are still in use by businesses. But with the technological advancements, many such facilitatorsare now available in the market, which can help automate the payroll process.

It is not ‘impossible’ to keep track of all tax updates and payments. The challenging task is to keep oneself updated with all the tax filings, salary structure, attendance, bank accounts, wages of different employees etc. Payroll management software can help businesses with all these complicated and highly time-consuming tasks!

What is a Payroll Management Software?

As the name suggests, Payroll Management Software is an application that maintains, manages and automates the employees’ payments in any company. It uses programmed functions that compile and calculates an employee’s payroll online on a secured platform. This software helps determine the salary that will get credited to the employees’ accounts for the time they have worked (including their overtime, bonuses etc.). Taxes can also be calculated easily using this software. The user-friendly nature of this software allows the HR manager to generate payroll reports and perform direct deposits. Research shows that using a software can benefit a business in many ways. It can improve team efficiency by 73%, reduce payroll costs by 80% and eliminates the risks of manual errors by 91%. Mentioned below are some pointers which explain how this software benefits businesses:

1. Time-saving:Payroll management software is time-saving because there isn’t any need to manually enter payroll calculations and long pay stubs. Although, the employee details and payment structure would have to be entered manually initially. All the further steps will be taken care of by the software, which allows the company to focus on essential business goals.
2. Error-free calculations: The traditional paper-based payroll processing system is vulnerable to errors, which can prove costly. It is challenging to manage such an immense workload and run a detailed analysis of all the employees. A payroll software can do this efficiently.
3. Cost-effective: Running a ‘Small and Medium Scale Business’ is a tough job because multiple tasks need to be taken care of within a limited budget. So, it can help save large sums of money on manual payroll processing, increasing the returns and investing in other business areas.
4. Data security^[1]: Data security is the need of the hour. Security standards have been improved with developments in technology. Many payroll software ensures data security and encryption.
5. Timely reminders: One might fail to perform a payroll check if they get caught up with some work. Payroll management software is of great help in such situations. Custom reminders in the software can be used to meet deadlines.
6. Excellent customer support system: Payroll management systems offer excellent customer support. Any issue, complexity or interruptions encountered during work can be worked upon easily by reaching out to customer service.
7. Regular updates: Payroll tax rules keep frequently changing, making it challenging to keep up with them. This problem is eliminated by the regular updates provided in the application itself which further reduces the workload and enhances productivity.
8. Generating Payslips: It is daunting to generate paper checks and payslips for all employees and takes up a significant part of the working time. The good news is that these applications possess a ‘payslip generator’ feature which can help in proceeding with monthly payment routines easily. Companies can also choose a template, fill in the required information, and get a customised payslip.
9. Advanced Calculations: The traditional methods of calculating using a calculator is no longer relevant.This software has advanced calculation settings which can support prominent figures too! Not just one, but many calculation methods are available.
10. Links to Multiple Companies: This is another exciting benefit of using payroll software. The employee details in more than one business venture can be controlled using just one account. This feature of linking one account to many companies may not be present in all payroll software.
11. Boosts Employee Productivity: Workers are the heart and soul of any company because their hard work contributes to the company’s overall growth. The use of traditional payroll systems could cause delays. But, payroll management software could help satisfy the employees’ expectations at the right time. Systematic payments heighten employees’ trust in the company, boosting their morale and inspiring them to do their best.
12. Customisable Designs: Another benefit of using a payroll management system is its ‘customizability.’ The configurations of the software can easily be customised according to the payment structure, the number of employees, the date of monthly due, or the creation of a distinct salary structure according to the company’s guidelines and policies.
13. Reliability: Some of the best techniques in the world are used by payroll software. So, one can rely on the efficient working of this software and be assured of the results. This saves time, but the likelihood of errors is also negligible, lessening the time taken for extensive calculations and drafting employee statements.
14. Tracking Employee Actions: A payroll management software can also track employees’ actions such as leaves, attendance, shifts etc. This feature helps in observing and keeping a record of the working pattern of each employee. There are separate columns to enter all the relevant details of all the employees, which can be used to keep a watchful eye on the employees.
15. Automatic Data Synchronisation: An employee may have some outstanding paychecks if he leaves the company. But all is taken care of by the payroll management software. It automatically updates all its records if an employee leaves. Thus, there is no confusion regarding whether the employee was paid.

What is the Cost of this Payroll Management Software?

The size of the business, the number of employees, and the features required by the employees all affect the price ofpayroll software. Payroll processing can be done using payroll software for a one-person company or even for a bigcompany with hundreds of employees. Basic payroll management software has fewer features than advanced ones because it is intended for small businesses. Depending on the features and how many employees use them, these products can often cost $50 to $250 per month.

Larger businesses with more complex requirements, such as those that manage numerous payrolls throughout the year or offer employee benefits, require advanced versions. Depending on the number of employees served by the system and the number of calculations that need to be completed each month, these products can cost anywhere between $300 and over $5,000 each month.

Conclusion:

Payroll management is an integral part of any business, and managing payroll can be overwhelming. Therefore, the right tools are needed to ensure that employees get only good experiences, not headaches. Payroll management software is an excellent solution for any company to maintain employees’ details, contact details, increments, salary, leaves etc., using an automated process which is secure, reliable and easy to use.

Read our Article: Payroll Services in India: Virtual CFO Services