5 Ways Payroll Software Can Help Your Small Business

If you have a small company, then getting payroll software for small business is important. It can automate the whole process and ensure that everyone in your business is paid on time. It can also mean that if your employee needs a pay stub, then you can provide this easily. More than this, it can keep the tax authorities happy by ensuring your records are up to date when they come calling so that everything stays legal and declared. 

1. It Automates the Pay Process - Less Work

None of the payroll systems for businesses completely take all the work out of the payroll process. However, an automated process can greatly reduce the work involved in a manual system done either on an excel spreadsheet or by hand.  You can produce payslips automatically and there is even an option to deduct tax and other contributions. There are a couple of programs that can make the process seamless. Here are a couple to consider:

On Pay - On Pay is a straight-forward program you can use to manage your payroll. You add in specific hours that your employees have worked and ask it to do more complex procedures such as 401K retirement and health insurance plans. But a key benefit is the ability of the software to be able to integrate with other business platforms to enable an even richer automation process of your business practices. 

Quick Books - This is another payroll software. But it is aimed more at smaller businesses. It is easy to use and does not include some of the more complex features of its rivals so you may find that over time your business outgrows it. Increasingly popular because of how easy it is to use, it does integrate with time and attendance software to make keeping track of hours easier.  Alternatively you can check out our bookkeeping or payroll services which can take away the trouble of managing software or your books yourself.  A payroll service might be a better option than relying on software which is made by one company that could collapse such as what happened with MyPayRollHR. 

2. It Means Everyone is Paid The Right Amount On Time 

The good thing about small business payroll software is that it ensures all employees are paid at a set time at regular intervals and on time. If the process has to be done manually then this means relying on someone in HR or an accounts manager. If this person is ill or is unable to complete the task then it becomes a problem. An automated system takes the stress out of the whole process of paying people.  An automated payroll system could indicate in advance if there were not enough funds to pay staff for that month. There are also no more delays and it means staff have to reply to fewer emails asking where their money is or if there has been a discrepancy between the amount of work or hours someone has worked and the amount they are paid.

Of course payroll software cannot completely eliminate these errors but by integrating payroll software with attendance there is less chance of their being an error.  And this is crucial when the unemployment figure is low as employees who are not being paid correctly could walk out and join another company.  Payroll software is flexible and so of course it can be amended. Many high-tech institutions have also started using apps to allow employees or students to register their own attendance on an app and see how that matches up with their own payroll records. 

3. It Keeps The Tax Authorities Happy

Nobody likes paying tax, apart from the government but it is a fact of life. And if you don’t declare your earnings properly you can end up in serious trouble. The penalties can include costly fines for your business. Don’t get caught out by being lax about it. 

Payroll software enables you to automate this process and to see the complete picture as you go along rather than having to race around at the end of the tax year.  You can clearly see what each employee earned for the tax year and break that down into the number of hours.  If you link payroll software into the main accounting programs for the business then you can also start to see the bigger picture and it might present you with ways in which you can reduce your tax burden legally.

Perhaps your yearly net profit is marginally too high and you need to reduce it slightly to fall under a certain tax bracket. You could then choose to ask a certain number of employees to work a few extra hours to ensure your profit is reduced slightly. The payroll software can help you determine which employees are suitable for this based on the number of hours they have already worked.

Payroll Software For Small Business Can Transform Your Fortunes 

Payroll software for small business is increasingly common. No longer the preserve of big nationwide companies that can afford to automate everything, payroll software is integral to the running of any business.  Small business payroll software ensures that all employees are paid on time, on the same day and largely ensures that their pay is accurate. It reduces but does not eliminate the risk of having problems with inaccurate payments. It reduces the administration element of the payroll, with HR managers free to deal with other issues that arise.  But most importantly it keeps the tax authorities happy and enables them to see clearly each employee’s tax records and how many hours they have worked. Not only this it can help to keep your business organized and on track at all times. This can be helpful in making long term decisions about the future of the business.  If you are interested in payroll software or our bookkeeping services be sure to click to request an appointment.