subject: Three Benefits Of Payroll Software [print this page] Small business owners know that the key to business success is to both increase market share and reduce expenditures. Certainly makes sense doesn't it? Sell more and spend less. Without a doubt, this is likely the simplest rule of business. Unfortunately, every small business owner knows it is much easier said than done. However, while increasing market share requires a multipronged approach, reducing expenditures is often a much easier endeavour. One of the easiest ways to reduce expenditures is to do away with manual payroll management. Using small business software for payroll processing allows small businesses to avoid the high costs associated with problematic, redundant and repetitive manual processes, processes that require tedious and time-consuming input of data. The right small business software can not only reduce costs, but it can also produce significant improvements in efficiencies. So given the need for small businesses to reduce expenditures, what are the most important benefits when using payroll software?
1. Elimination of manual processes
Manually filling out payroll forms is extremely costly and in every instance, a complete waste of time. Manual processes are prone to errors and errors lead to wasted time and high costs. The right payroll software can manage an employee's entire pay structure so they receive their pay on time and without issues. Payroll management software empowers users to input all data with an easy-to-use interface. Changes and adjustments can be made and the results of actions taken can immediately be assessed. Users can ensure they've properly accounted for the employee's salary, bonuses, deductions, worker's compensation payments and any miscellaneous tax withholdings. There's no fumbling around with a calculator and no relying upon problematic excel sheets.
2. Reduced overhead & headcount
When looking at payroll software, think of the benefits of outsourcing. In essence, using payroll software is akin to outsourcing the manual processes involved in payroll management. This immediately reduces the company's cost structure because it allows the small business to reduce its overhead. Reducing headcount is an essential part of remaining lean in today's economy. Even small business owners must be willing to take the necessary steps to reduce their overhead expenses. Additional benefits include increasing speed and accuracy of employee payments and streamlining how an employee's compensation is managed.
3. Compliance with government tax regulations
Regardless of what country the small business operates in, it is essential that it avoid the high costs associated with late, incomplete or incorrect tax returns. Bottom line, there are severe penalties for incorrect tax returns. Small businesses are more likely to encounter these penalties when using manual payroll processes. However, this is less likely to be a concern when using payroll management software as issues with inaccuracies are easily handled and addressed. Payroll software allows small businesses to compile accurate reports governing how their overhead and cost structure will be affected by the future costs of promotions and salary increases. Weekly, monthly and quarterly reports can be produced in order to give the small business a more accurate view of its overall cost structure and its upcoming withholding periods.
A number of enterprises consider payroll management software as a prerequisite to operating in today's fast paced business environment. Gone are the days when small businesses could manage payroll manually via an excel spreadsheet. Today's small business owner must have an internal system that reduces the incidences of error, and allows the company to meet the time-critical needs of its operations.
