The Advantages Of A Computerized Payroll System
A manual payroll system might seem simple and straightforward for small businesses. Yet even if you employ a small crew, going digital can help your business. Check out the advantages of a computerized payroll system, and find out why you should go digital.
Keeping track of the hours your crew works doesn’t have to be hard. Using manual punch cards and time clocks seems easy, but these processes add extra steps. After all, punch cards don’t transform into paychecks. At the end of every pay period, you have to collect timecards and input the data by hand.
With an electronic system, you can streamline the process. Instead of using paper cards, have your crew sign in digitally. Whether you have them sign in on a computer or swipe a badge, you can track time electronically.
When the pay period ends, the system sends the data to payroll automatically. You won’t have to worry about losing information, making the whole process simpler.
Processing timecards and writing paychecks by hand isn’t as easy as it looks. Sorting all the data takes time, and errors can result when you have a manual process. After all, your team is human, and mistakes can happen.
With an electronic payroll system, you can forget about time and human error. Payroll software takes your timekeeping data and calculates your crew’s time and paychecks automatically. Whether you pay by the minute or by the quarter-hour, a digital system takes care of turning time into money. This will also make it easier to write accurate construction bids on projects.
It doesn’t matter if you pay every day, every week, or every other week. An electronic system can do payroll on your schedule. Choose the right timeframe for your company, and let the software do the rest.
With most manual payroll processes, you have to print checks or write them by hand. If you’re used to doing either, taking that additional step might not seem like much work. With a computerized system, however, you can eliminate that extra work.
When you go digital, your system does the processing automatically. You can set your crew up for direct deposit, and their paychecks will appear in their accounts every pay period. You can still print paper checks with a digital system, but you can look forward to an automated process.
If you have employees, you have to deduct amounts for a variety of purposes. From taxes and retirement contributions to health care benefits and uniform fees, you might have a long list to track.
When you go digital, the application you choose can calculate deductions for you. That means you won’t have to stress about accuracy or errors. Instead, the software takes the input and applies deductions automatically.
When tax season arrives, you won’t have to think twice about providing paperwork. Your payroll software can easily calculate total deductions and create tax documents for your crew.
When you do payroll by hand, you also have to create reports manually. That means generating reports for pay periods or tax season can take hours or even days.
Digital applications make reporting much easier. Most programs produce a report every pay period so that you can check the information before generating payments. During tax season, you can generate almost any kind of report you need, too.
Over the course of a year, a digital system could help you save countless hours. That means more time to focus on your business and fewer opportunities for error.
Take a look at your company’s filing cabinets. The amount of paperwork may seem small, but it adds up quickly. You have to keep records of your crew’s time and payments for at least three years. So how can you make better use of storage space?
With a digital system, you won’t have a need for paperwork. Instead, you can keep payroll records on your computer or online. That means you won’t have to deal with endless stacks of paper or cabinets full of documents.
An electronic system also offers more storage space. Your office may only have space for a few thousand documents. However, you can save millions of records on most computers. That means you’ll never have to worry about running out of storage space again.
Ultimately, key business processes become easier and more exact when you go digital. From payroll to equipment rental, an electronic system makes every step simpler. Learning new software or an advanced system may take some time. However, going digital can help your business do more with less, allowing you to take your goals to the next level.