Payroll is an important aspect of any business. Cash flow may be the life blood of any business but the employees are definitely the arteries that pumps it. Besides the incentives and compensations that can attract and retain talent to an organization, the reliability of receiving salary on time is also key; and it will be hard for any company to retain quality talent when employees are getting paid late for their work due to inefficient payroll management. Undeniably, it is a crucial aspect of every business.
Relying on Excel sheets for Payroll Processes
It is not uncommon to find some businesses using Excel sheets to handle and process their payrolls. The reasons for it seem palpable; it is the usual tool for accounting and there is a free option as well (albeit with limited functionalities). However, not everything is as simple as they seem.
Excel sheets are not as convenient as you would expect when big numbers and larger amounts are involved as it is not specifically designed to handle tasks like payroll. As your company grows bigger, calculating payroll with Excel sheets will be more likely to get more and more complicated as your number of employees grows, as there will be a higher probability of human error. It is not easy to factor in all the variables that might be involved as they are different employees with various salary ranges. Simple formatting issues in Excel sheets can cause a lot of problems that can take weeks to resolve.
Furthermore, consolidating all the data becomes a real pain, especially when the data is needed to generate HR and Management Information System reports. The whole process can become very time consuming. Also, there is almost little to no privacy and with poor built-in controls for such sensitive information like payroll.
Although Excel sheets is a functional tool that can record and calculate complex and difficult numbers, it has its limitations to run payroll processes effectively. So how then can start-ups, ranging from small to big businesses, handle their payroll efficiently? This is where a cloud based payroll management software comes in handy.
Benefits of Having A Payroll Management Software
1. Centralized Data Management
So, why use a cloud based payroll software? First and foremost is that it has a centralized data management which allows businesses to run payroll easily by administering countless amounts of data like employees’ personal details, tax declaration details, salary revision history and so much more with just a click of the button. Maintenance and classification of employee records can also be easily accomplished, something that Excel sheets lack. Security is important when sensitive data are involved. Not only is payroll software built to prevent unauthorized entry, it also has the functionality of assigning multiple roles, with each having different access levels. This will significantly help in team coordination, and also increases team productivity.
2. Integrated with Accounting Software
Payroll software can also be fully integrated with accounting systems such as QuickBooks Online and Xero, which allows for a seamless and error-free transfer from payroll to accounts. With a dedicated payroll system, leave deductions and overtime hours can automatically be transferred into the accounting systems for pay calculations.
Running payroll involves many complex calculations and processes and it also has to be done on a monthly basis. Hence, the ability to automate these processes of several important but time-consuming tasks on a payroll management software makes using it all the more worthwhile. One of such complex tasks is tax calculation. Discrepancies in tax calculation can have serious legal ramifications for your business and needs to be taken seriously with little to no human error. Payroll management software allows you to complete this crucial but tedious task effortlessly and while other businesses are spending a huge chunk of their focus and resources in manually calculating their taxes, you are able to focus more energy on other aspects of your business such as growth.
4. Easy Handling of Discrepancies
Leave and time attendance of employees are major factors that businesses need to calculate and keep track in order to determine their employees’ salary. Manual data entry into Excel sheets have increased the probabilities of discrepancies within the data as they are prone to human errors and could take forever to pinpoint and rectify.
However, with payroll software, it can be quite easily managed and discrepancies will be reduced. Once the leave and absence management system has been incorporated into the software, the HR and payroll department will have a much easier time administering all the data and can work more efficiently by focusing on the major aspects – payroll processing and verification.
Get started on cloud-based HR with JustLogin
JustLogin is a suite of cloud-based HR applications that helps small to mid-sized businesses automate their payroll, leave, attendance and expense management. We’ve helped thousands of businesses achieve increased productivity and better employee experience – no matter if they are working from an office, at a restaurant, in a retail shop, at a warehouse facility, or of course, even working from home. Give JustLogin a try today at justlogin.com/free-trial.