Running payroll is an essential task of any business which can be time-consuming. For small and medium enterprises (SMEs) this can sometimes be overwhelming and may take up more resources. Here’s where payroll management systems can enter, helping SMEs become more efficient, effective while enabling business owners to focus on the more crucial tasks on hand.
Small business owners typically prefer to handle payroll themselves or entrust it to an employee or accountant. There is always the risk of human error while making complex calculations with regards to tax, leave management and other components that make up payroll. With payroll management systems, computing errors are reduced, and processes are automated, which makes the entire process smoother and more accurate.
Given below are some of the advantages of investing in a payroll management system.
When business owners or employees process payroll manually, there is an elevated risk of error when it comes to computing all the components accurately. There could be under-payment or over-payment of dues which could be detrimental to employees and the business. Additionally, one must consider several components like the number of hours worked, days off, tax-saving instruments, and compensations while calculating salary. With a payroll management system, this can be automated, thereby reducing the chances of human error.
Payroll processing is time-consuming and laborious due to the number of tasks involved from logging in attendance to disbursement and generating payslips. Payroll management systems will automate the process from tracking employee attendance and overtime, calculating tax and statutory compliance, to generating pay slips, PF reports, and disbursement, all at a click with little need for manual intervention. This frees up SME business owners to focus on running the business instead of getting bogged down by payroll paperwork and Excel sheets.
No-stress statutory compliance
Statutory compliance is mandatory for all businesses, including SMEs. Any violation can mean serious legal issues for the business owner and therefore it is an important task. Calculating statutory compliance however can be a complex and time-consuming task when you have to consider overtime, bonus, gratuity, TDS, PF, benefits, tax-saving investments and so on. Payroll management systems automate the calculation with accuracy and speed. PF, TDS reports can be generated with a click.
Payroll processing has some sensitive and critical financial documents and data security is of utmost importance. Some payroll management systems offer the security of the cloud – which means peace of mind for employers who no longer need to worry about data storage and security updates. The other benefit that payroll management systems offer is that it enables employers auto-generate pay slips and maintain records that can be accessed by employees.
A good payroll management system will enable employee self-service. This is an important feature as HR employees across the board get inundated by employees’ requests for information which eat into their daily tasks and delay progress on critical HR activities. A good payroll management system will have a dashboard that gives employees quick access to relevant information like leave balance, leave application and approval, list of holidays, and so on. Through the dashboard, employees can access all their relevant data, and pending approvals in a single click, instead of having to email supervisors and HR back and forth.
SMEs that are struggling with payroll processing issues, time delays and inaccuracies in computing salaries and statutory compliance should consider investing in a payroll software solution. Tricon Infotech’s PayWheel is India’s leading payroll software solution that will make payroll processing easy for SMEs. PayWheel’s cloud-based software automates the payroll process and takes care of the statutory compliance while enabling self-service for employees and empowering management and HR to focus on key tasks. With a SaaS, pay-as-you-go model, PayWheel is an economical and on-demand solution for all your payroll processing requirements. Connect with us to learn more about our payroll management solution can help make your entire payroll process easy and convenient.