Since the industrial revolution came, more and more economists started discussing how the economies worldwide have become dependent on small and medium-sized companies. It is not a stretch to say that the SMEs have become the backbone of today’s economies.
Even though small businesses usually have fewer employees to manage, they are still growing steadily. These growing small businesses tend to face challenges in recruiting the right talent, grooming the employees, processing their payroll, and evaluating their performances.
This is where our article comes in to help you out. If you are a small business owner and are looking to grow and expand, then one of the key processes that you should focus on is payroll management. To make this process efficient and result-oriented, the payroll software is extremely helpful.
Why focus on Payroll Management?
Payroll management started making headlines when it began changing how businesses did their payroll. It didn’t matter how many employees were working at an office at the time, the payroll software showed the ability to make faster payroll calculations, fewer errors, streamline the employee compensation process, along with offering tentative results to make informed decisions.
The best reason of all is that by using the right payroll software, you are more likely to avoid fraudulent transactions.
When every employee is going to get his or her pay on time and in the right amount, they will most definitely find the transparency appealing. Their satisfaction levels will also increase the employee motivation levels along with their loyalty.
All in all, an investment in payroll software is always going to be profitable.
Key Points:
- Faster and better payroll calculations
- Fewer payroll mistakes
- Better compliance
- No sham or deceit
- Happy employees
Steps to handle your payroll efficiently:
- Read and get knowledge about the fundamentals of payroll. The learning won’t stop at knowing what payroll is. It will also include calculating taxes, classifying employees, and adjusting benefits.
- Take advantage of what the technology is bringing. Do not shy away from the latest innovative tools. Use the payroll software to your advantage and save time, money, and effort. As a small business, using technology to your advantage is the best strategy, trust us.
- Using these tools will also help you gain optimization in your HR and Payroll processes thus adding the element of systemization to the mix.
- Professional help should not be taken lightly. HR consultants have the knowledge to help small businesses succeed even with their limited resources.
- Also, calculate the gross or net pay of all employees but don’t forget to factor in the taxes, deductions, and other benefits.
The Benefits of Payroll Software for SMEs
1. Accuracy
It is not a secret that HR professionals make mistakes while calculating payrolls and this causes hundreds and thousands of dollars loss on average.
But, we have a solution!
Using payroll software is the ultimate way to solve your payroll problems efficiently and effectively. When you use any payroll software to calculate and manage payroll for all employees, this tool helps you by simplifying the process enough to make it easier and faster.
2. Time-Efficiency
Time is money, and payroll software saves plenty of it. Tasks that would take hours manually can be completed in minutes. In short, small businesses now have the time to focus on core operations.
3. Cost Savings
Some small business owners have shared that they cannot afford HR and payroll software. Their budget is not enough. But, less expensive and high-quality HR and Payroll software are also available. You just have to find the right ones based on the reviews, comparisons, and pay structures.
4. Compliance
Tax regulations can be complex and ever-changing. Payroll software stays up-to-date with tax laws and ensures your business remains compliant, reducing the risk of fines and penalties.
5. Employee Self-Service
Pay stubs can be easily generated by the employee by using a paystub generator offered in the payroll software.
6. Data Security
Not all payroll software solutions are secure. There is a lot of employee data that is sensitive, like their pay which usually is not disclosed by most. Go and opt for payroll software solutions like Resourceinn that not only offer data security and 24/7 customer support.
Statistics That Speak Volumes
- According to a survey by PwC, businesses that switch to payroll software reduce their payroll processing time by an average of 22 hours per month, leading to significant cost savings.
- The American Payroll Association reported that manual payroll processing has an error rate of approximately 1-8%. In contrast, payroll software can reduce errors to less than 1%.
- ● The Small Business Administration (SBA) states that over 40% of small businesses incur an average of $845 annually in IRS penalties due to payroll tax mistakes. Payroll software can help reduce these costly errors.
Choose the Right Payroll Software
Small businesses are working tirelessly to grow so it is only right that they get access to better technology through which they can save money and effort continuously. The only point left to consider now is the payroll software selection. In conclusion, payroll software is a game-changer for SMEs, simplifying complex financial tasks, saving time, and reducing costs. We encourage all small businesses to keep growing using the right innovative tools.