Payday often entails long and tiring hours of sorting through personnel files and computing the appropriate pay to compensate your workers. One mistake can eventually lead to costly reconciliation or a disgruntled employee.
Payroll accounting is a crucial aspect of any business’s operations, which is where a computerized payroll management system comes in handy. Through this system, payroll-related tasks become a breeze while helping you avoid costly mistakes.
A good payroll management software will calculate your employees’ statutory deductions, overtime fees, legal contributions, compliance, holiday pay, taxes, refunds, and gross salary. Payroll software can also create reports according to the format provided by law, so you can file these reports with relevant government agencies.
If you want to know more about how a payroll management system can make processing payrolls easier, then read the article to learn more!
10 Business Benefits of Having a Payroll Management System
Ease of Use
Since payroll management systems are compatible with different rules, options, policies, and features, you can easily configure its method of accounting according to your organization’s needs. All necessary data for payroll accounting, including the salary structure, attendance of employees, and information on lost wages, can be customized and modified per employee with just a click of a button.
Besides having a self-explanatory user interface and efficient process, the software makes bank transfer statements and payroll statements available for download. These are must-have features that help lighten the load for your payroll team.
A payroll management system eliminates the need to enter payment stubs and calculations manually. Everything from salary computations, calculations for tax and other deductions, as well as sending the digital payslip to your employees can be automated by the software.
It handles the time-consuming processes that your financial department would otherwise have to do, giving them more time to address highly urgent concerns.
Quick and Easy Reconciliation of Mistakes
With its trove of personnel files and logs of attendance, you can easily verify employees’ claims on the payroll management software. Not only does it prevent lost time from manually verifying employee records but its quick turnaround time can also ensure that employees get paid accurately without delay.
Without the need to augment your payroll staff, you could allocate the money intended for paying the additional people you were supposed to hire toward company savings.
Moreover, you can decide which features of a payroll management system you want to avail of. If you want to use minimal financial resources, you can get the essential functions of the payroll software.
On the other hand, if you anticipate expansion of your organization, then you might want to spend more on extra features such as the integration of employee attendance and HRMS or ERP software. An ERP software unifies the elements of your organization into one system, making its operations more streamlined and efficient.
Calculating monthly taxes, legally required transfers, and deductions can be time-consuming and may result in costly mistakes. Similarly, inaccurate reports may lead to penalties and fines.
Fortunately, automated payroll software exists to keep your accounting updated with tax returns, news, and amendments. By linking your payroll to timesheet systems that monitor employees’ clock-ins and clock-outs, you may automatically transfer data about the hours worked into the payroll software.
Most payroll management systems will have an analytics dashboard that allows managers to monitor employee performance and look into workforce trends. It can also develop other documents with the required information that your organization must submit to the government.
Plus, with data on employee work hours, payroll systems can conduct an in-depth analysis of staff costs for the business in general as well as for specific jobs, contracts, and departments.
One of the primary cons of sticking to the traditional manual payroll processing method is its vulnerability to errors, which can entail high costs. By contrast, payroll software based on a cloud can enable organizations to process payslips accurately. It leverages market techniques that follow the industry’s best practices.
With a reliable payroll software, you can have a seamless user experience, achieve precise results, and save time on payroll processing. You can control all aspects of payroll, weigh salaried components, add up multiple accounts, solve complex tax calculations, and automate the payment process.
Technologies such as multi-factor authentication, firewalls, encryption, and back-ups have increased the standards of payroll software. As such, all information shared in the payroll management platform is saved securely and encrypted in the servers.
Detailed Record Keeping
Inconsistent systems on managing attendance, leaves, and employee performance can make it challenging to switch from one system to another when processing payslips and calculating tax.
Fortunately, the right payroll software can verify the information and update data accordingly since the system is supported by a solid integration framework.
Leveraging a payroll management system to make financial projections is an efficient way to create budgets, plan staff costs, and determine the exact costs of each employee. Additionally, you can use it as a criterion to get advanced results and automate your tax deducted at source (TDS) calculations.
Choose an Inventory Management Platform Integrated into a Cloud-based ERP
Hiring a diversified and well-functioning workforce is crucial. However, it is equally important to invest in an accurate payroll system. A payroll management system works efficiently in helping your company save money, control many aspects of salary computation, and distribute payslips on time. While having standalone payroll software is good, it is better to fully integrate it into the company’s cloud ERP system.
In the Philippines, Yondu partners with Acumatica to offer ERP with a payroll management module that is fully integrated into its system. Apart from Acumatica, Yondu also develops customized payroll management systems that fit your business model and process. Its built-in payroll management functionality allows you to reduce staffing costs and increase accuracy with a complete payroll management solution for your company. Schedule a consultation with Yondu’s ERP experts!