How can payroll software streamline your human resources department? How can using a small business software platform help to improve your efficiencies across your entire operations? More importantly, how can using payroll software help in reducing headcount, and empower your small business to better manage the high costs of upward mobility? In order to answer these questions, think of the costs associated with manual payroll processes. Think of the time needed to fill out employee forms. Think of the costs of late and incorrect tax filings. Think of the time needed to stay abreast of the most recent tax laws, government rules and the myriad of regulations concerning how employees should be paid. Now think of how much easier it is to manage all of these aspects with the right small business software. The right payroll software can make all the difference. However, if you’re still on the fence, then perhaps it’s time to review these aforementioned cost drivers.
The impact of late & incorrect tax filings
One of the more alarming statistics is that of the impact of late and incorrect tax filings for employers. In fact, according to the IRS in the United States, over 50% of all businesses face a yearly fine and additional taxes for incorrect tax filings. Most of these errors occur from manual processes that are time consuming, redundant and incredibly confusing. Most payroll management software programs allow users to manage their employee’s pay and compensation via an easy-to-use interface where they can complete an employee’s W-2 form electronically, and complete it in a fraction of the time of manual processes.
The ability to better manage upward mobility
Every company must be able to manage their fixed and variable cost structures. Part of thee fixed costs include the salaries paid to employees and managers. The right small business software can make managing the costs of upward mobility a much easier process. The right software can not only track an employee’s compensation, but can also give the company advance warning of future increases in its fixed cost structure.
Improvement in time
Managing an employee’s compensation doesn’t merely involve ensuring they get their paycheck via direct deposit. To properly manage an employee’s compensation means to manage all aspects of their reward and incentive structures. The company’s sales team must be managed according to their commission structures, and bonuses. The right payroll software program can reduce the time it takes to properly manage the pay of all employees.
Lower fixed costs
While each of these aforementioned benefits adds value to the company, they often pale in comparison to the savings companies achieve in reduced overhead. Companies that are able to migrate from manual payroll processes to a payroll management software, are often able to reduce their headcount and expenditures. Payroll software allows the company to achieve significant cost reductions and is akin to outsourcing payroll to an outside firm.
Manual payroll processes must be done away with completely. Not only are they time-consuming, but they are also incredibly expensive and prone to error. Using a payroll software program allows small businesses to assume a more proactive role with respect to managing how their workforce is paid. It allows them to better manage their employee’s compensation and ensures that their tax filings are more likely to be completed on time and in the right manner. Managing a small business is fraught with issues and small businesses must never add to those woes by trying to manually manage their payroll. There are plenty of affordable payroll management software programs available. These software programs more than pay for themselves by eliminating idle time, improving efficiencies and reducing the company’s cost structure.
