Are you a small business owner struggling to keep up with payroll? If so, you’re not alone. Payroll management can be complicated and time-consuming, especially for businesses just starting out. Fortunately, there are payroll management systems available that can make the process much easier.
Payroll management systems cover the entire scope of HR functions, such as, managing timely payments, tracking employee work hours, managing leaves, incentives, workers’ compensation, and deductions to other administrative responsibilities. Payroll systems can take care of all of these nuances. While payroll management systems can benefit business owners, many people are skeptical to rely on one software for so many responsibilities. Here are some of the most common myths about payroll management systems.
Myth 1: Payroll Management System is Complicated
One of the most common myths about payroll management systems is that they are complicated. . While some payroll management systems may be more complex than others, most of them are designed to be user-friendly and easy to use. For instance, manually trying to keep track of finances, employee hours, and taxes can be quite a tedious task and increase the chance of human errors. Transitioning to an online payroll management system may seem complicated at first but the benefit for your company and your employees are numerous. In fact, many business owners find that using a payroll management system saves them a considerable amount of time and hassle. There are many payroll management systems available in the market and can be customized to fit your business’s specific needs, making all of your work streamlined.
Myth 2: Payroll Management Systems Are Expensive
Many businesses still rely on a spreadsheet to manage payroll and assume that moving to innovative software is expensive. But think about all of the tedious time and effort spent by your staff just for simple wage processing on a monthly basis. Doing payroll calculations manually takes a great deal of time and hiring an in-house team to do the job will actually prove to be a distraction from your primary services. A good payroll system will optimize your processes and increase your business’s efficiency. Additionally, using an online payroll system gives you the benefit to do payroll processing from anywhere. When you consider the time and money you will save by using a payroll management system, the cost is worth it.
Myth 3: Payroll Management Systems Are Only for Large Businesses
While payroll management systems are used by many large businesses, they are just as beneficial for small businesses. As a business owner, when you opt for a payroll management system, it should not be based on the size of your company but rather on understanding how companies and employees can benefit from the implementation of a payroll system. If you were to ask us, we believe that payroll management systems are beneficial for both small and large corporations. For example, if it makes sense to choose a payroll system with employees as low as 10, then even small companies can benefit from the use of payroll systems. Additionally, a good cloud-based payroll system has perfect reporting analysis and functions that can be tailor-made to suit the needs of small businesses.
Myth 4: Outsourcing Payroll Is Risky
There’s no shame in admitting you need help, and payroll management is a complex task that requires accurate knowledge to manage. Outsourcing your entire payroll process will actually prove to be much less of a headache. Just think about all the possible errors and non-compliance that can be removed from the whole equation. Isn’t that just more space to help you breathe better? Also, it is natural for us to feel a bit insecure and extra cautious about sharing sensitive data with a third-party service provider and risk a data breach. But on the bright side, when you outsource your payroll, the third party will solely take responsibility for quality checks and the safety of your data. They are also liable for the accuracy of the data and bound by contract to eliminate any security risks and fraud. Outsourcing payroll management can be more secure than one may think. In addition, making this change will give you the time to focus on more important tasks than spending hours performing backend office tasks.
Myth 5: Moving Payroll Is Scary
Change can be scary, but do you what’s even scarier? Regrets. One of the obvious reasons many companies shy away from shifting their payroll to a payroll management company is because they are afraid of the uncertainties. It’s normal to feel this way, but it is also essential to communicate your fears. A good payroll service provider will give you a clear understanding of the process and make moving payroll less daunting. Moreover, rather than focusing on what might go wrong, think about the long-tail benefits such as streamlined payroll, cost-effectiveness, increased compliance, and cloud-based computing. Therefore, payroll service providers do understand your fears and have dedicated teams for each client to ensure a seamless transition.
Myth 6: Payroll Management Systems Don’t Work With Our Accounting Software
Many payroll management systems are designed to integrate with popular accounting software programs. You can use the payroll management system to process payroll and then have the data automatically transferred to your accounting software. For example, certain payroll systems integrate with QuickBooks Online and Xero. When this happens, the software will automatically record transactions via journal items and billing aspects. When opting for a payroll management system ensure that it integrates with a wide range of applications. Being able to integrate payroll, taxes, and accounting software will help to create a complete system for your business.
Myth 7: Payroll Management System Will Not Enhance Employee Experience
This is one of the most common myths about payroll management systems. In reality, implementing a payroll management system can do wonders for an employee’s experience at your company. A payroll management system is efficient and can have a major effect on the morale of your employees. Employee retention is the first step to fostering a culture of transparency in the company and can be achieved by proper payroll and accounting functions. For instance, when payments are on time and accurate, employees can access their payroll data, and it empowers them to take control of their finances. By automating payroll processes and reducing errors, you create a smoother, efficient process that will save your employees time and effort.
Final Thoughts
Payroll management systems simplify payroll services and enable companies to automate payroll. Payroll systems have proven to be essential to making businesses run seamlessly. Moreover, it helps to improve employee engagement, streamline the accounting process and reduce costs. It will also reduce unnecessary stress by removing the hassle of endless complex calculations. Ultimately, payroll management systems give you more time to focus on important tasks i.e. growing your business.