subject: Selecting Payroll Software for the Small Business [print this page] Payroll software is something that every small business needs. Ideally, the program will be integrated within a well-structured database. It makes things easier for management and inspires confidence in employees.
Buying an off-the-rack, one-size-fits-all program could waste your money and your time. The programs can cost as much as $300. The cheaper programs must be updated or replaced every year.
Installation can be time-consuming. Entering all of your employee's information and specifics about your company will take even longer.
An experienced database designer can take care of all those things for you. He or she can include automatic updates and other time-saving features.
Your time is valuable. Time saved is equivalent to money saved. A customized system is always a worthwhile investment. As your company continues to grow, a good database will grow with you.
The database can keep track of employee commissions and expenses. Your company's computer can serve as a time-clock, keeping track of the hours worked by each employee. The only things your employees will need to remember to do are to clock in and clock out. Your database will do just about everything else.
The typical payroll software does not include those features. Some of the more advanced accounting versions offer you the option of entering commissions or expenses, but those programs are more expensive.
They can be difficult to use and errors are common. Everything depends on entering the information correctly. There are no true checks and balances.
The small business owner can compete with the big companies by taking advantage of the latest technology. Owners can keep the best employees if their systems ensure accuracy.
Employees will quickly become frustrated with payment errors. People will put up with a lot, but not when it comes to their money.
Small business management tools can be integrated into your database, as well. Customized reports can be generated with ease. Employee sales can be tracked. Inventory can be monitored. Those are things that off-the-rack payroll software cannot do.
You could continue to buy individual programs as the years go by. On the other hand, you could have a database designer include all of the options you need now and those you expect to need in the future.
A well-designed database will help you grow your small business.
If you're like most owners, growing your business is one of your ultimate goals. Off-the-rack payroll software will not help you achieve those goals.
