In 2016, we surveyed 5,540 business people around the world.
- 27% of respondents said they're planning to hire more employees in 2017.
- 64% of respondents said they'd welcome an 'admin-free world' whereby expenses coming in and out are recorded automatically.
If you're one of the 27% planning on hiring or the 64%, who wants to reduce admin, online payroll software will help your business.
You'll run a more efficient business
If your business relies on manual payroll processes, you're spending time on admin when you could be managing your talent or growing your business.
The painful truth is managing your employees’ salaries, leave days, taxes, and other employment-based information relating to remuneration on a spreadsheet (or via another manual process) is time-consuming.
If you automate your payroll, you won't have to worry about processing employee information, salaries, taxes, and other information correctly.
When you need information on salaries or insights into the performance of your employees, you can avoid wading through a paper-based system or trying to understand old formulas on a spreadsheet.
You'll also be able to connect your payroll solution to other systems. For example, you could track employees clocking in and out of work or monitor their performance and link this to their remuneration.
You'll reduce the chances of fraud and error
Keeping your employees’ personal and financial information safe is a big responsibility for employers.
The good news is a digital payroll solution will back up information about employees and keep these records safe, on-site, off-site, or in the cloud.
Employers with a manual payroll system, on the other hand, face more risks including: fire, theft, loss of personnel records and so on.
Payroll fraud or errors regarding your payroll data can be costly. However, a good payroll system will reduce manual data capture, impose checks and balances, and reduce the chances of your business suffering from losses as a result of fraud or error.
Most digital solutions offer a password-protected environment for storing personal and financial data related to your employees. This will mitigate against the wrong people accessing sensitive payroll information.
That said, you should still take extra steps, like reviewing your network security, firewalls and passwords, to secure your computers and devices from hackers and virus attacks.
You'll accomplish more, with less
A small business starting out with a few key personnel is almost always limited on funds, which goes some way to explain why many business owners handle their payroll themselves.
Between the time it takes to start a business and scale it, business builders or entrepreneurs spend valuable working hours on their books and payroll runs.
You can save time (and keep costs down) by digitizing your payroll. An automated payroll solution will save hours of work, which you can spend on business development and growth.
Going digital will free you up to manage the performance of your employees. What's more, an HR module for your payroll solution will help you to manage processes such as performance reviews.
That said, it doesn't always make sense to run a business without the advice of a financial expert like a bookkeeper or accountant. Once you've grown your business, you'll be able to employ a dedicated accounting professional to take care of this for you.
You'll solve your compliance issues (and be able to plan ahead)
Most HR and payroll managers spend a large portion of their time handling tax and compliance issues like managing payroll deductions, filing tax returns, and compiling reports for the labor department and other regulatory bodies.
Employers in the United States are subject to various federal and state laws with respect to issues like minimum wage.
A digital payroll solution can automate some payroll processes and help you ensure your business is compliant. It'll do this by simplifying calculations and compiling reports regulators and tax bodies need from your business.
However, a payroll solution isn't just an operational system; it can support strategic decision-making. For example, many payroll and HR managers use dashboards and other analytics tools to see gain visibility into their workforce.
This approach will help you understand how employees are performing and plan for the future needs (and growth) of your workforce.