Payroll problems: Managing payroll can be extremely challenging for businesses of any size, but it’s especially high-stakes for SMBs, where the room for error tends to be much smaller. As such, it’s important that SMBs take the most effective and efficient approach possible to payroll if they want to ensure a long & profitable future.
In this article, we’ll be taking a quick look over payroll as a whole: common issues, the problem with a more “traditional” approach, and why using payroll software is a necessity in this modern-day and age.
Table of Contents
Common Payroll Problems
Payroll problems are abundant and widespread, so let’s just go over the most common ones. Generally speaking, businesses will struggle with payroll costs as well as the actual payroll process itself.
Even the smallest of miscalculations can be very costly for a business if they go unchecked, and simply managing to keep up with ongoing payroll needs is a challenge for many. The most obvious solution is to expand the payroll department to keep up with increased demands, but this leads us right back to the first problem: sky-high payroll costs!
Why the “Hands-on” Approach Doesn’t Work
As you can see, the “hands-on” approach creates problems while addressing others. Overspending on your payroll budget is quite easy to do, but often, even after providing the payroll department with a generous budget, staff are still struggling to produce accurate & compliant payroll calculations on time. This problem worsens as your company expands:
solving it requires either spending more or trying a different approach entirely! Fortunately, thanks to the advances in payroll software, the alternative approach is not only more cost-effective but more efficient as well!
A Modern Alternative
Small business payroll software offers the modern business owner the convenience of an automated payroll system for the low price of a monthly subscription. Prices vary, but many companies offer payroll services for as little as $4.50/month, which is far less than the cost of employing even a single payroll specialist! These systems are capable of managing entire companies at a time, eliminating the need to onboard additional payroll specialists as your company grows.
In fact, most businesses will be able to slash their payroll expenses, downsizing payroll staff in favor of utilizing a cheaper, more efficient automated system.
Why Payroll Software Works
Above, we’ve identified two main issues with manual payroll processing: high costs and inefficient processing. With low monthly subscription costs, the financial advantage of payroll software for small businesses is obvious, but what about the payroll processing itself? Does software truly offer a superior experience to the service provided by payroll specialists? In fact, it does! Whereas people are, by nature, prone to making errors from time to time, payroll software doesn’t suffer from this issue, meaning you’ll never have to worry about reissuing payroll again.
Assuming that employee data is entered correctly the first time (which is the only task that needs to be handled by employees), all future payroll calculations will be completed on time and accurately from this point on.
A Comprehensive Solution
Standalone small business payroll software offers a clear advantage over manual processing, but the benefits don’t need to end there. By implementing complete payroll solutions instead of standalone ones, you can unify your payroll with your HR and benefits administration, providing a shared database that employees of all departments can access on-demand.
Automating HR will allow you to downsize your HR department staff as well, further increasing your overall savings, and automation will improve your overall processing time. By managing routine payroll & HR tasks using technology solutions, employees will have more time to tend to other vital business tasks such as employee management or training seminars.
Modern Solutions: Enabling Businesses to Succeed
With all of the software solutions currently available on the market today, it’s no wonder that businesses that still rely on manual processes are quickly falling behind the competition.
If you haven’t already implemented software solutions, now would be a great time to do so. If you have, it’s worthwhile considering consolidating your services to a single platform for a truly unified workplace. The tools are all available to you, so what are you waiting for? Make the necessary changes today!
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