Payroll management is one of the most exigent and time-consuming HR processes. It requires calculating and maintaining a detailed record of employee’s salaries, incentives, bonuses, deductions, and net pay. It also includes reviewing and updating the company’s payroll database to make sure that it clearly reflects the current status of employee remuneration. Traditionally, organizations used to have a payroll manager who was responsible for performing all of this work manually. However, as the size of businesses expanded, their employee strength also increased. This made manual payroll management nearly impossible. That’s when technology took matters into its own hands and provided us with Payroll Management Software.
Just as an LMS, like Paycom, is a tool to automate employee training processes, payroll management software is a tool to automate payroll management processes. From storing your employees’ data on a safe and secured server to calculating basic pay, making statutory deductions, and then estimating the final payout, payroll management software is capable of automating everything.
Interested to dig deeper? Then this blog is for you. Here, we have created a list of the top 5 benefits of using payroll management software in your organization.
1. Reduces the possibility of human error
The most basic benefit of using a computerized payroll management system is that it limits human involvement. All that is required to be done manually is feeding initial data like, employee names, their basic packages, percentage of deductions to be made, etc. Further processing and calculations are taken care of by your payroll management software. This reduces the possibility of miscalculations and other similar errors. It also ensures consistency as the software will calculate the payouts, in the same manner, every month unless a change is manually fed into it.
2. Makes it easier to implement changes
Laws related to employee remuneration are open to modifications. New rules can be added while the existing ones can be altered completely. In the case of manual payroll management, organizations would be required to train their HR staff every time such changes take place. This can delay their implementation and attract penalties or other legal consequences. However, with payroll management systems, your payroll manager can introduce these changes into your system with just a few mouse clicks. The software will also modify the upcoming reports and payslips to align with the new rules.
Such software can also be configured with different features and options to better suit the needs of your organization
3. Saves valuable time
Manual payroll management is not just difficult but also time-consuming. Calculating salaries, preparing payslips, and managing financial reports, for every employee, every month is a dreadful nightmare. Payroll management software saves you from going through all this trouble. It speeds up the process and allows your HR managers to dedicate their time to other pressing issues. Plus, timely payout also keeps your employees satisfied and motivated.
4. Helps in cost-cutting
Managing payroll manually requires you to hire professionals and pay them huge salaries every month. In addition to these, you also have to spend money on training to keep them up to date with the changing laws. With payroll management systems, on the other hand, you just have to bear the cost of installation and initial training. It eliminates the need of setting up an entire department specifically for managing payroll.
5. Eases up the paperwork
Payroll management software also eases up the paperwork. Functions like generating reports, preparing payslips, maintaining salary registers, etc are efficiently performed by payroll management software. It also allows you to check the accuracy of payrolls by using in-built payroll reconciliation tools. This means that you no longer need to bury yourself in heaps of files and documents. Just install an effective payroll management software and access every information that you need with just a few clicks.
The list of benefits of using a payroll management system is never-ending. Small businesses can cut costs by implementing affordable payroll management software and reallocate funds to improve the efficiency of other functions. So, if you too have not automated your payroll management process yet, it’s high time you do!