5 Signs That It's Time to Use Payroll Software

All businesses want to succeed in every aspect. However, not all are willing to invest in highly efficient technologies such as online payroll software because they feel hesitant on allocating budget for it. 

But if you’ve been inefficient lately in processing your payroll, then maybe it’s about time you consider adopting payroll technology. 

Why is payroll management important?

Before we proceed to the red flags, let’s first get to know why payroll management is important. Imagine you are an employee in an organization, diligently carrying out your responsibilities and giving your best efforts. At the end of the day, you are expecting to receive your hard-earned and agreed-upon salary. 

However, when you see discrepancies in your payroll without a proper breakdown or explanation, chances are you may start doubting them and may even consider reporting them to government authorities. 

In other words, payroll management is so important for your organization's employee engagement, ensuring regulatory compliance, facilitating tax filing, maintaining accurate accounting records, and avoiding costly mistakes. 

When is it time to use and adopt payroll software? 

Here are some indications that it may be time to use payroll software. 

1. You've made several errors in salary or tax calculations

Have you been fined for filing incorrect taxes or did any of your employees bring up incorrect pay computations? Inaccurate calculations are the greatest indicator that you are not doing your payroll right.  

Mistakes are costly and could badly ruin your company’s name. To prevent these slip-ups from recurring, it’s best to use payroll technology to make sure all payroll data are automatically and accurately computed. 

2. You've consumed too much time perfecting salary calculations

If you’ve been pouring a lot of hours into perfecting salary calculations, then it’s a sign to invest in a suitable payroll software. An online payroll software that is programmed according to your country’s taxes and benefits can calculate everything automatically. 

For instance, a specific Australian payroll software can be programmed to calculate PAYG, Superannuation, and other benefits and deductions automatically. This does not only save you precious time to spend elsewhere, but also ensures utmost accuracy across all your payroll figures. 

Read: 5 Tips on How to Improve your Company's Payroll Process 

3. You don't have any back-up

Still using pen and paper or printing out worksheets and pay slips? Don’t wait for a calamity to disintegrate all your important files before adopting and using payroll technology. Invest in a cloud payroll software solution where you can store all your payroll data and keep it safe, secure, and disaster-proof. 

4. You want to avoid Payroll Fraud

If you have experienced fraud or discrepancies in employee salaries before, chances are your data security is weak (or you might have none).  

If you want to prevent payroll fraud such as falsified wages, made-up employees, or false benefit claims, then you should invest in professional payroll solutions with robust security features. This will give you the peace of mind that all your critical payroll figures cannot be hacked by intruders. 

5. You don't have any permission settings

Payroll figures should always be kept confidential. If you are storing payroll data on your filing drawers or PC files, you’re making it very easy for snoopers to have access to salary amounts, which can lead to even bigger problems.  

Payroll technology must have the capacity to give you that perfect balance of security, where you can apply permission settings according to who will access it. This will allow you to grant permission to managers to view payroll details of their teams, as well as give your employees access to their own timesheets and pay slips only. 

RELATED: The Top 3 Best Payroll Software for Australian Businesses 

What are the Advantages of the Payroll System?

The advantages of using the right payroll software can go beyond solving the red flags mentioned above. Here are some benefits you can expect by adopting payroll software:  

1. Enhanced Employee Experience

Payroll software often comes with self-service portals that empower employees to access and manage their payroll, tax forms, and other relevant documents. This instant accessibility improves transparency and empowers employees to have more control over their payroll-related information. 

2. Streamlined Processes

 Payroll software automates repetitive tasks such as calculating wages, deductions, and tax withholdings. This streamlines your payroll process, saving valuable time and reducing the chance of mistakes. 

3. Compliance with Tax Regulations

Credible payroll software providers stay updated with the latest tax laws and regulations, ensuring accurate tax calculations and timely filings. This helps you comply with government requirements without the stress of staying constantly updated. 

4. Data Analytics and Reporting

Payroll software provides valuable insights by generating various reports and analytics. These reports help you analyze key metrics like labor costs, overtime, and employee turnover, helping you to make informed and valuable decisions to optimize your workforce management and budget planning. 

How to Choose the Right Payroll Software? 

Lastly, when selecting the payroll software for your organization, consider these factors to ensure the best and right fit for your organization needs: 

1. Scalability

Look for payroll software that can grow with your business. It should accommodate changing employee numbers, complex pay structures, and evolving compliance requirements of your organization. 

2. Integration Capabilities

If you already use other software for accounting, HR, or time tracking, ensure that your chosen payroll software integrates seamlessly with these systems. This integration eliminates the need for duplicate data entry and enhances the overall efficiency of your workforce. 

3. Security Measures

As mentioned above, payroll data contains sensitive information, so prioritize software with robust security measures. Features like encryption, secure data storage, and role-based access control help protect your payroll information from unauthorized access. 

4. Customer Support

Consider the level of customer support offered by the payroll software provider. Make sure that they provide prompt, reliable assistance and technical support to assist you when needed. 

5. Pricing Structure

You may also evaluate the pricing structure of different payroll software options. Make sure to compare the features they offer, the frequency of updates, and any additional costs for support or integrations. Also, make sure to take note of the overall value of the software provided for your specific needs. 

Do I need payroll software? 

Absolutely yes, we strongly suggest utilizing payroll software to make your life easier. Since aside from the benefits, you can reap from using it, this software will also help you focus on more important aspects of running your business. 

THE BOTTOM LINE 

While payroll technology is a great upgrade in improving your entire payroll process, lacking the proficiency in how to operate it can set you back. Don’t think of just investing in technology per se; you must also invest in the right people who know how to manage payroll processes very well. 

D&V can be your partner in setting up a payroll solution that’s tailor-made to your business needs. We have the technology and expertise to eliminate the burden on your part, so you can have the peace of mind that your payroll is done accurately, securely, and always on time. Get in touch with our payroll specialists now to learn more about our Payroll Solutions for Australian businesses.  

You may also download our Outsourcing: How to Make it Work guide today and see how we can help you ease the burden on your part. 

 This post was first published 16 August 2016 and edited 22 January 2024. Edited by: Angelica Garcia