Payroll management goes to the very heart of the relationship between a company and its employees. It is often considered one of the most tedious functions, as well—especially if done manually. While payroll automation is no longer a new concept, there are still a considerable number of small and medium-size enterprises (SMEs) that compute hours worked and salary deductions manually, believing that it would save them money as compared to having a computerized, automated payroll system.
The Problem with Manual Payroll Systems
While a manual payroll system can be considered relatively cheaper, it requires payroll processing to be done entirely by human effort, meaning time card, wages and payroll tax computations; wage garnishments; and voluntary deductions are all done manually. However, utilizing a manual payroll system can easily result in inaccurate payroll processing due to its high room for error.
Manual systems have no built-in processes to catch errors, and the more manual computations the human resources and finance departments have to make, the more errors they are prone to make. Thus, a manual payroll system is also more time-consuming because to ensure the payroll is accurate, the said departments have to repeatedly cross check the data. Even then, it is very possible to miss errors.
Automated Payroll Systems are Your Best Option
There is so much at stake when it comes to payroll management; it is crucial that you avoid the prospect of errors while also reducing the workload for both you and your employees. Furthermore, if you are one of those who are still in the era of the obsolete, manually-done method, it is about time you embrace the inevitable and invest your resources into something that can rather keep up with the times and help move your business forward—an automated payroll management system.
There are dozens of advantages and benefits that come from switching to an automated payroll system. Here is a closer look on 5 reasons why you should automate your payroll management system.
1. Reduction of Human Errors
Payroll errors could be one of the primary causes of dissatisfaction with one’s organization. Automating your payroll can help mitigate the potential for these human errors. They can automatically calculate salaries, deductions, overtime pay, and other things that affect an employee’s pay, thereby preventing miscalculations and imprecise amounts.
2. More Accurate Timekeeping
Manual payroll systems require time clock data and hourly wages to be computed by hand, presenting an opportunity for error while also time-consuming. Through an automated payroll and attendance tracking system, time clock data can be imported directly into the payroll system, which can then automatically calculate the total time worked. Any necessary edits, such as an employee forgetting to either clock in or out, can be easily and quickly made with an automated system.
3. Create Reports Easily
It is not easy digging through all your manual files to assemble all the data you need in a report. Through an automated payroll system, you can generate, download, and look into all types of reports that can help monitor and analyze your company’s payroll expenses, time and attendance, and much more.
4. Improved Labor Management
Time is the most crucial resource that you can save when choosing to automate your payroll system. Although timekeeping, recording, and calculating manually might be cheaper at the onset, it is a heavily time-consuming and labor-intensive task. An automated payroll system can handle most of payroll’s tasks, freeing up a lot of your time which you can, in return, use to engage in other potentially revenue-bearing tasks and grow your business.
5. Save Money
The American Payroll Association suggests that automating your system can reduce your payroll processing costs by as much as 80 percent. While an automated payroll system might scare off some businesses with its price, it nonetheless can save money. A lot of the previously mentioned reasons and benefits of an automated payroll system contribute to an overall lower cost for your organization since it eliminates potential human errors. Not to mention, time is money—which is especially true and important for all businesses.
There are many benefits that go along with automating your payroll process. Switching to an automated payroll system, or, even better, a human resource information system (HRIS) like Everything@Work that is also capable of managing all other kinds of human resource services for you, will lead to more efficiency since your employees can now dedicate their time to business goals and expansion and everything is accurately computed. Also, all payroll information including personal, time-keeping, and financial information is centrally and safely stored in one place.
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