When it comes to the end of the month employees want to be paid and the government wants to receive the right amount of tax – so one of the most important issues that small firms must get right is payroll. Furthermore, it is imperative that firms have a system in place that deals with this quickly, accurately and efficiently. And in many cases payroll software can help.
Four key areas that this system can help with are reducing time wastage, improving planning and reporting, recordkeeping and vitally saving money.
Payroll software can interact with time clock systems that imports employee work hours, which can significantly reduce the amount of time spent doing this manually. Also, rather than working out tax deductions systems that have a tax table subscription automatically works this out for each employee. Furthermore, once a clerk enters the initial data the programme automates this until circumstances change – saving small businesses vital hours in manpower.
Planning and reporting
This type of system is able to forecast labour costs and can interact with budgeting and accounting software. In turn this makes it easier for managers and owners to make good decisions.
It also allows them to produce sales forecasts and can help firms accurately price their goods and services so they can make a profit. On top of this, if times are hard it can give companies data on whether they need to lose staff or recruit more if things are going good.
Finally, this small business software lets them know exactly how much money is available for potential wage rises and bonuses through its various reports.
Gone are the days when hand-written ledgers were the main way of keeping track of things. Payroll services let firms keep on top of employee sick leave, holidays and personal time very efficiently. It even records staff and managerial inquiries. This in turn allows accounting personnel to concentrate on doing their job rather than wading through various pages of handwriting and inquiries.
Last but definitely not least –and probably the most important benefit of payroll software – is it saves companies money. The technology also lets businesses cut their costs by reducing payroll positions as the system is automated.
Furthermore, it saves money by accurately working out tax, creating sales forecast reports and keeping on top of labour regulations. All in all this results in fewer penalties and fines, a happier workforce that is paid correctly and on time while the taxman receives the right amount of tax.
IRIS is a UK-based company that provides specialist business software solutions to improve the efficiency and performance of its clients.