We will go over some of the main benefits of using payroll software to help you determine if you do need one for your business.
Nowadays, more and more businesses are using payroll software. You may think that only large companies do this, but even small ones are making the switch. If you own a small business, you may think that you do not need such a technology. In fact, you may even see it only as an unnecessary expense.
It will not hurt to keep an open mind, though. In this article, we will go over some of the main benefits of using payroll software to help you determine if you do need one for your business.
The biggest benefit you can get out of using a payroll software is saved time. Payroll involves calculating regular salaries and other taxable benefits, deductions for CPP/QPP, EI, and income tax, and more. You also have to ensure compliance with tax laws and generate reports.
All of these calculations take a lot of time even if you use an Excel spreadsheet with formulas ready. Furthermore, they get a little more complicated if you have locations or employees who report in more than one territory or province.
Payroll software can do all of these calculations seamlessly and quickly. Imagine how many other things you can do using the hours you save by letting your payroll software do this work for you.
Millions of dollars of fines are paid by businesses every year due to payroll calculation errors. A misplaced decimal point, a mistyped number, rounding errors, and other seemingly simple mistakes can cost you a lot.
Moreover, policies covering taxes, salaries, and deductions change from time to time. Good payroll software automatically update online and apply the necessary changes in computation so that you do not have to keep track of them yourself.
The other good thing about using payroll software is that they are able to generate reports that you can use to help out in your decision-making. These applications can also generate reports that you can submit to auditors and accountants for verification.
Choosing the Right Software for Your Business Size
As mentioned, payroll software can be used by small and large companies alike. If you are a small business (less than 50 employees) that wants an affordable and simple payroll software, you can look at options that are geared especially toward small companies.
If you have a mid-sized company, you may need more than just a dedicated payroll software. Some vendors have products that incorporate functions like scheduling and attendance tracking into the core payroll functions.
Finally, big businesses may want to look into so-called enterprise resource planning (ERP) packages. They tie payroll functions with such other features as accounting and other systems.
The short answer to the question we posed earlier is no. You definitely do not need a payroll software, but you definitely want it. Payroll softwares today now cater to businesses of any size, so there is no such thing as a software that is too powerful or too simplistic for your needs. They also offer many benefits, including saved time and minimized errors.