Payroll automation is not a new concept these days, but surprisingly, there are still several SMEs that compute hours worked and salary deductions manually, thinking that it would save them some money as compared to having a computerized payroll system. If you are one of those who are still in the era of obsolete, paper-based method, it’s about time you embrace the inevitable and invest your resources into something that can keep up with the times and move your business forward. Here are 5 great reasons why you should automate your payroll processes:
TIME is the most crucial resource that you can save when automating your payroll process. While manual timekeeping, recording, and calculating might seem cheaper at the onset, it is a time-consuming and labor-intensive task. Specialised payroll software calculates swiftly without any errors and also makes it possible to generate salary reports in an instant. Instead of focusing on the tiniest details of your payroll, automated payroll processing frees up a lot of your time which you can use to develop better products and grow your business.
According to the American Payroll Association, the clerical error rate for totaling hours manually is between 1% to 8%. Another study from Nucleus Research suggests that without an automated time and attendance system, companies tend to overpay their employees by an average of 1.2%.
Payroll software can automatically calculate salaries and deductions (upon customisation of deductibles), significantly reducing human error and its impact on the business. Say goodbye to overpayments, underpayments, and penalties with an automated payroll system.
3. Secure Storage of Data
A computerized payroll system allows you to store all data that you keyed in, eliminating redundancies in tasks especially when recording employee information and calculating deductions. This makes pay runs significantly easier to fulfill each time.
On top of that, data can be safely stored on the payroll software or via the cloud, and you can be sure of the confidentiality of your payroll figures, as opposed to having them out in the open with papers and spreadsheet files.
4. Permission Settings
In addition to secure storage of employee and financial data, an automated payroll system gives you the chance to activate permission settings for the different employee levels of your company. You may grant the head of your finance department full access to your payroll figures, your managers can only have access to their own teams—you are in full control of who gets to see the details of your payroll.
No matter how busy of a business owner you are, you definitely don’t want to miss paying your employees on time and have the ability to view your payroll figures anywhere you may be. Payroll software via the cloud empowers you to do these across all devices, as long as you have an internet connection. You may access employee timesheets, generate payslips and send them out, as well as authorise electronic fund transfers (to employee bank accounts) and remittances of government-mandated payables.
Automated payroll processing not only accomplishes everything quicker, it also gives you the peace of mind that everything is accurately computed. Then again, you can only make sure of that if the person managing your payroll is proficient with payroll procedures, taxes, legislations, and benefits, to know exactly what data to feed the payroll software.
Get in touch with D&V’s Payroll Experts now to learn more about automating your payroll process. D&V can set up a payroll solution according to your organisational needs, so you can focus more on growing your business.