Payroll Automation: A Key to Growing Your Business

business meeting

The advancement of technology has allowed businesses to automate several tasks. For example, many businesses are now automating customer service. They use chatbots to answer queries more quickly and in larger volumes. Chatbots offload mundane and repetitive tasks from employees so that they can focus on other important tasks. HR has also made the hiring process much easier by using artificial intelligence.

And speaking of HR, almost all its areas can be partially or fully automated if desired by businesses. And one area that needs to be automated in a business is its payroll systems. Automation will remove many pain points for the company and will also make employees happier.

But not all businesses are open to the transition from a manual process to an automated one. This is especially true for small businesses. The upfront cost that comes with using automated payroll software may turn small business owners off from this idea. Not to mention, they also need to spend a little more to train their payroll staff on how to use the software.

However, it’s important to note that part of growing a business is shelling out money to improve and streamline its processes to allow employees to work more efficiently. The many benefits of payroll automation will convince small business owners to invest in it.

Improve Efficiency

As the saying goes, time is money. You can save time and money in the long run if small business owners automate their payroll process. Automation will eliminate its manual steps, such as data entry. And if the software is compatible with the software used in the other branches of HR, the payroll process can be streamlined. Thus, payroll staff can go through the payroll process more quickly and easily.

The faster turn-around time provided by the automated payroll system will also ensure that employees receive their pay on time. And this will eliminate follow-up emails that can also eat up payroll staff’s time.

Give Employees More Accessibility

Through an automated payroll system, employees have the liberty to check on their accounts when they want to. They can check and edit their personal information. The system will also allow them to view their payslips and print them when needed. They can also view their deductions in the system.

Having this visibility will benefit employees. For instance, knowing their deductions and monthly take-home pay will make budgeting easier for employees. It will also allow them to plan for other financial milestones. For example, they can avail retirement financial services and start investing in their future.

business concept

Reduce Errors

Automation can help minimize human errors in payroll. One example of human error is misspelling the names of employees. This can be avoided since employees are allowed to view and edit their personal information to be reflected on payroll, as mentioned earlier.

Miscalculations are also common. Using automated payroll software can help businesses avoid these errors. For instance, tax rates are conventionally hard-coded into the software, thus avoiding mistakes in tax deductions. Just like tax rates, other payables are also coded into the software, such as overtime pay, double-time pay, reimbursements, and so on. As long as data is properly logged into the system, there will be no issues with the release of these payments.

Better Compliance

In a survey by the Internal Revenue Services, 9 % of respondents agree that paying taxes is every American’s civic duty. Unfortunately, tax issues are still quite common. For example, a small business might unintentionally underpay its taxes due to wrong computations, which can lead to trouble.

Since tax rates are hard-coded in the software, businesses can ensure that they are compliant with tax laws and that they don’t overpay or underpay taxes. If any changes in laws are implemented, changes can be easily reflected in the system.

Also, automation can save the staff from headaches during an audit since, as already pointed out earlier, it minimizes errors.

Better Data Security

Payroll software is always encrypted. So the data stored in it are secured. This will help businesses prevent security breaches or data leaks that may put them and their employees at risk. Using payroll software is definitely much more secure than having piles of paper with employee information stored in boxes or shelves.

It’s understandable for small business owners to have reservations about automating their payroll. But if they want their business to grow, they have to take steps to make it happen. And automating their payroll will help improve their business practices and make room for growth.

Share on facebook
Share on google
Share on twitter
Share on linkedin

Related Posts

Scroll to Top