Running a small business takes hard work and dedication. If you’re like most other small business owners, you probably take care of virtually all back office operations– including payroll.
While it’s noble of you to try and take on every little task, you can’t do it all and run a successful business at the same time. Delegating non-core tasks, like payroll, will give you more time to focus on what you do best: running your business.
Payroll software can streamline this mundane task, freeing up your time for more important things. Here are six benefits of a small business payroll service.
1. Improved Productivity
Whether you do the payroll yourself or you have a designated employee, there’s one thing we can all agree on: this task eats up a lot of time.
Payroll software will streamline the entire process, saving you time and money in the process. Your staff will also be thankful for getting payroll done with adequate software so that there will be minimal human error when it comes to their payslips and they’ll receive the correct salary. This also gives your designated payroll processor will have more time for other tasks, which will improve the efficiency of your operation and lower your overhead costs.
2. Fewer Costly Errors
With manual payroll processing, there’s always the risk of human error. And sometimes, that error can be very costly to a business.
In 2013, U.S. businesses lost $7 billion in IRS civil penalties because of inaccurate accounting. Tax and accounting professionals pinned the blame on incorrect data input, overriding system data and the deletion of custom formulas. All of these are human errors.
With payroll software, there’s no longer a need for manual data input, and you can prevent unauthorized users from changing your system setup.
Payroll software saves you time, but still allows you to manage the processing in-house. Handling everything in-house means that you don’t have to hand over personal, sensitive employee data to a third party.
The best online payroll services employ the best security to protect your sensitive data and keep it from getting into the wrong hands.
4. Accurate, Convenient Logs
Using payroll software allows you to keep accurate logs that are easily accessible in case of an audit. An audit trail is important for all financial aspects of your business. If an employee has a question about his or her pay, having accurate payment logs and taxes can help settle disputes.
Gathering audit data can take days with a manual system, but software can compile the data in minutes.
5. Automated Tax Filings and Payments
Doing payroll the old-fashioned way means having to remember to file taxes on time and make payments manually.
With payroll software, filings and payments are carried out automatically. You never have to worry about being late or missing a payment. Tax laws and regulations are updated automatically, so you can rest assured that you’re not violating any rules.
6. Happy Employees
Many online payroll services provide employees with access to their pay stubs and W-2, which makes everyone’s lives easier. Some providers also allow employers to pay via check, direct deposit or debit cards, giving you and your employees flexibility.
Payroll software streamlines your payroll, saving your business time and money, which is reason enough to jump on the bandwagon. And with fewer errors and more accurate records, you can rest easy knowing that your payroll processing is well taken care of.