5 Reasons why your small
enterprise should move from
manual to automated Payslips
Automated Payslips: There are several SMEs that rely on manual calculation of payslips, with a view that it will cut the costs of investing in a technology tool. It is time that they weigh the benefits – both in terms of cost and time saved – of tuning into the right technology.
While it is best to manage the payroll function in-house, it isn’t such a simple task. (Read here on Step by Step Guide to Generate Payslips for Your StartUp) The complexities in a company’s payroll function are usually not highlighted until something goes wrong. If you are a new business owner you definitely don’t want errors in your employees’ payslips, leaving them dissatisfied.
The good news is that now it is easy and cost-effective to automate any function, even for businesses that are just starting out and are in a nascent stage. Here are the top 5 reasons why small enterprises should move from manual to automated payslips:
Precise Calculations in automated payslips
One essential feature to look at while shopping for payroll software is that it should automate salary calculations as per the number of days attended, tax deductions, leaves availed, or any other reimbursement claimed. This reduces human errors significantly, which in turn eliminates any overpayments, underpayments or miscalculations. As a start-up it also becomes easy to track the cashflow by understanding the income and other expenses incurred as employee costs. Automating attendance helps to reduce incorrect attendance marking or even proxy attendance that one employee may make for another.
Cost and time saving
Cost and time are the most important resources that a start up can save on by automating the payroll process. This is because the tool eliminates all labour-intensive tasks like timekeeping, recording attendance, reimbursements, taxes and calculating each component of a payslip. A payslip generator calculates all the tabs required with the data that is already populated in the system. Salary reports can be generated instantly. The HR employees who have so far been busy calculating payslips components now have the time to concentrate on higher-value tasks like developing employees and engaging with them. This time saving leads to cost saving for the company. More productive utilization of time means more output and value for the business.
Maintain Compliance
When you are just starting out a business and hiring your first employees; you want them to be passionate about work and have full trust in the product. Hiring the first employees can be a crucial factor in deciding which way your business will go. Also, when you are hiring people and asking them to trust the product or service they will be selling, you want to be sure that you are compliant with the local employment laws and taxes. Because trust always works both ways. Having a payslip generator reduces the effort of calculating salaries manually or making a mistake that can cause compliance errors. In some countries, new businesses need to share the details of every new employee they hire. A payslip generator is a good place to source all these details from. (Read more on Why should your company file tax returns on time?)
Access data anytime
When you are starting out in a business, you want all the data of your business to be accessible with the click of a mouse. A payslip generator, which is a subset of the payroll function, stores all employee data at one place. One doesn’t have to look in filing cabinets and desktops to find the relevant files. Various organizations that are looking to do business with start-ups usually want to know what their employees work credentials are before signing any deal. This payslip generator feature comes handy in such situations.
Internal Data Transfer
With a payslip generator, no department has to be dependent on another for information transfer. Be it HR or finance payables or tax computation, every department can have access to the entire data set anytime, anywhere. They are no longer dependent on any other department for data inputs. This, in turn, saves a lot of time for everyone. Also, the data is uploaded in a standard format, which makes it easy for every department to read, understand and collate.
Employees are the biggest assets for new enterprises. They need to ensure that their employees stay motivated, engaged and have trust in the employer. Salaries are the biggest upfront cost for start-ups, hence adopting a system that automates salary payment helps to remove any errors and keeps employee morale intact. Automated payslips make the whole process seamless and efficient.