Payroll is one of your business’s most important departments. If your company’s payroll department isn’t working properly, then employees won’t get paid on time. If employees aren’t paid on time (or paid at all) then they won’t work for you for very long.
Unfortunately, payroll can be an expensive department to fund. Generally speaking, business owners have to hire accountants and several staff members to run payroll for them. However, due to technological advances, it’s no longer necessary to hire an entire team to handle payroll—you can get away with just employing one or two people and giving them access to the software.
This post will tell you about how technology is changing payroll and making it an easier and cheaper department for businesses to run.
Payroll Software
If you want to streamline your company’s payroll department, then you need payroll software. In the past, payroll was just a component of accounting software. Now, however, it’s possible to buy dedicated payroll software. Make sure that you invest in the best payroll software for accountants, so that you only need to hire one accountant to manage your firm’s payroll department for you. This software makes sending, organizing, and logging payments much easier. It’s also very affordable because it’ll means that you don’t have to hire a full-time accountant to handle your business’s payroll department.
Greater Accessibility
The use of payroll software (or just accounting software in general) makes it easier for your business’s payroll department to access files and information from wherever they are. During the COVID-19 pandemic, businesses’ payroll departments had to go online. Investing in payroll or accounting software for your business will mean that if there are any future lockdowns or if staff have to work from home, your staff can still get paid on time.
Repetitive Tasks
The reason that businesses would traditionally have to hire an entire team of people to manage payroll was that in payroll, there are a lot of repetitive tasks that need to be completed. People’s invoices and spreadsheets have to be checked column by column, then this information has to be verified, and then payments have to be manually paid out. If you have a very large company then this can take your staff days to do.
When you have payroll software, however, these repetitive tasks can be automated and streamlined. Payroll and accounting software will mean that your staff has fewer repetitive tasks to complete, meaning that they can focus on paying staff quicker, and you can reduce the number of people that you have working on payroll.
Data Compliance
Compliance is essential. If you don’t comply with payroll legislation and rules, then you can get into a lot of trouble. Payroll software can make compliance much easier. If you are found to be non-compliant, then you can receive a large fine. If you are consistently non-compliant, then legal action can be taken against you. Non-compliance can damage your reputation with your customers and also with your employees.
Payroll Reports
When you use payroll software, you are able to generate reports much more efficiently. Because the data that’s compiled and stored in payroll software is so accurate, it will make it easier for you to identify any frauds or suspicious activities. Manual payroll functions often mean that you miss fraud.
Make sure that you always back up the data that’s stored in your payroll software, so that you can access reports from a long time ago. Instruct your staff not to delete data when they are done using files. Instead, they should archive them. Archiving data will mean you can create reports from a long time ago whenever you want to, getting a clearer picture of your business’s finances and how they have changed over time, in addition to scanning for fraud.
Data Security
Your data is a lot more secure when you use payroll software because this software encrypts the data that’s stored in it. Additionally, you have to have correct login information or you can’t access the data that’s stored in this software. Even if hackers or criminals were able to access the device that you use to access your payroll software, the protective measures the software’s developers will have introduced to protect against fraud will prevent them from being able to access your financial information. Be sure to set up two-factor authentication, just for an added layer of security.
Tax Returns
As mentioned several sections ago, in the past payroll was usually just a single function or component of accounting software. While you can now buy dedicated payroll software, you can still use this software to make your business’s accounting and taxes much easier. For example, the information that’s stored in your payroll software’s archives can then be used to draw up accurate tax returns.
Despite the fact that you can buy standalone payroll software, it is probably a good idea to invest in software that includes accounting and payroll functions, so that you can save yourself money on your firm’s accounting.
Saving Money
As mentioned in the previous section, payroll software can help you to save money. You should always be looking for ways to save yourself money as a business owner, especially now. Things are very hard financially. There is a cost of living crisis, energy bills are rising, and food costs are more than ever. A lot of businesses are being forced to close because they aren’t able to sustain themselves financially. The use of payroll software will make it a lot easier for you to run and manage your business because it will save you thousands of dollars that would otherwise go on accounting fees.
Paying Staff
Finally, the use of payroll software will allow you to pay your staff on time. As mentioned previously, failing to pay your staff on time could lead to them not wanting to work for you. When you work for a company, you don’t want to have to deal with slow payroll. People usually want to spend their money immediately. By investing in this kind of software you will be able to streamline your business’s payroll, ensuring staff is paid speedily.
Payroll is a very important department. Technology can make it an easier and more efficient department to run. Not only will tech allow you to reduce the number of staff that you employ, but it will also allow you to increase the productivity of those that you do have working for you.
