It’s an incredibly difficult task to run a business of any size, but small businesses in particular require a lot of hard work. On top of that, often there aren’t many funds available, which is why some businesses choose to cut out the middleman and process their own payroll. However, without having the required expertise making a mistake with payroll is a major issue, especially as fines are handed out to businesses that get it wrong. This is just one of many examples of how dedicated software can help you out. Here we go through the top five reasons why your business needs to invest in payroll software.
Reliability
Many small businesses think they can process payroll themselves, especially when there are just a few employees to worry about. On the surface it seems like a good idea as it certainly saves you from spending money on payroll software. However, processing your own payroll can cause more problems than it solves. Unless you’re already a certified payroll expert, you’re going to face a lot of challenges. Common mistakes like incorrect data entry, misclassifying workers, or running payroll late can cost you time and money. Not to mention all the deadlines you have to remember! However, having dedicated payroll software means you’ll always process your payroll correctly, which will help keep your employees happy.
Hours Saved
Your time is precious, especially when you’re running a small business and already have so much on your plate. Running your own payroll is inefficient and can take hours. Payroll software will reduce your workload and save you a huge amount of time every week. A good example of that is payroll software like ADP, which can be fully automated, requiring minimal input to process pay week in, week out. Another great thing about payroll software is that most services provide mobile apps, so you can even process payroll on the go.
No More Tax Stress
One thing you don’t want when you’re a small business is to get on the bad side of the IRS. Yet the IRS estimates that 40% of all small and medium-sized businesses will end up paying a payroll penalty every year. Income taxes, payroll taxes, Medicare taxes, Social Security taxes, and more – it’s a minefield out there. And that’s before you even take into account keeping track of every tax deadline and regulation change. Understandably, it’s easy to make mistakes when dealing with all these variables, which means that inevitably you’ll end up getting hit with a penalty by the IRS. However, if you have payroll software then you don’t need to worry about taxes anymore. Good payroll software, like Paychex, will calculate and file taxes on your behalf – an essential service.
Time and Attendance Tracking
Processing payroll is difficult enough before you even consider that you have to get an employee’s worked hours correct every single time. You may be underpaying, overpaying, or losing track of overtime. There have even been lawsuits made by employees over this kind of mistake in the past. However, payroll software offers a solution to this. Services like FINSYNC and Gusto offer mobile apps that allow employees to clock in and out through their phones. These sync with your payroll software, so you’ll get the right number of hours every time.
Expert Support
Perhaps the most important aspect of using payroll software is that there’s help when you need it most. Companies make sure payroll software is easy to use, even for those who’ve never done payroll before. You’ll find plenty of helpful user guides, tutorials, and even dedicated training to get you started. As we’ve seen, processing payroll can a perilous process with a lot of pitfalls. So, if you do have any issues then you can turn to expert customer support staff who will be there to get you back on track.
Best Online Accounting Software of 2020
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1 | Editor's Choice 2020  |
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