Most businesses, no matter the size or number of employees, are familiar with the need for a payroll system. Making sure employees get paid and keeping an eye on transaction histories are some of the well-known functions a payroll system will handle. What a lot of businesses don’t understand is the cost they could be paying by using the wrong system. A poor system can cause huge inefficiencies and lead to a lower return on investment. If you aren’t sure whether your system is up to scratch, consider these crucial challenges of poor systems.
Reporting at the click of a button
When something goes wrong with your payroll system, chances are you need to know about it right then and there. The honest truth is that we may not always be at our business when it happens. That makes the payroll software you choose even more important. A good software application will allow you to access reporting and data no matter where you are in the world at any hour of the day. Having access to your businesses payroll data means you are informed and ready to act no matter the situation, minimising damage or capitalising on a benefit. A poor system could end up costing you more than you think if it only allows access from certain locations at certain times, or if it doesn’t back up to a cloud based server.
Functionality for efficiency
Like most systems, a payroll system should be designed to make life simpler. A poor system however could end up costing you and your business a lot more in man hours. A good payroll system will offer you additional functionality to improve not only your business’s efficiency, but yours as well. Functionality like tax calculations and superannuation contributions. A system that does not offer automation in these critical areas means you will likely have to do those calculations manually, which may seem like an impossible ask if you are a busy business owner. That means a lot more time in the office with a calculator and even more potential for errors. A good system will help ensure those errors don’t happen and that your business is fully compliant with government regulations as well.
Growing the egg
There aren’t too many businesses out there that would admit to a goal of no growth. If it is your business goal to grow your business, whether that be locations or even just staffing numbers, then the wrong payroll system may end up costing you a lot more than you realise. As your business grows, so do the needs of the business. One of those needs is the ability for any and all software to scale up to the new operations capacity. If your payroll system is incapable of scaling up, then it is likely to end up facing speed and connectivity issues or potentially even major failure. Having to implement a full change management process as your business is growing isn’t easy, and not recommendable. Instead, check whether the system you use can scale as your business does. It will save you time, money, and effort in the future.
Licensing and users
Depending on the type of business you run, it may not be possible to enter all of the information necessary to ensure payroll happens smoothly. If your business requires its employees to manually enter hours worked and other information then make sure your system is equipped to handle additional licenses and user accounts. For example, if you hire a bookkeeper, it may end up costing your business even more than their salary to make them effective. The wrong payroll system may be one that caps user licenses and access. Look for a system that allows you enough room to move on licenses and users to save in the long run.
A payroll system is a relatively unseen entity for most of the business, but it could be costing you a lot more than you hoped. Inefficient systems restrict access, users and can even make it hard or impossible to scale as your business grows. Find the right system by considering needs both now and in the future.
This is an article provided by our partners network. It might not necessarily reflect the views or opinions of our editorial team and management.
Contributed content
Founder Dinis Guarda
IntelligentHQ Your New Business Network.
IntelligentHQ is a Business network and an expert source for finance, capital markets and intelligence for thousands of global business professionals, startups, and companies.
We exist at the point of intersection between technology, social media, finance and innovation.
IntelligentHQ leverages innovation and scale of social digital technology, analytics, news, and distribution to create an unparalleled, full digital medium and social business networks spectrum.
IntelligentHQ is working hard, to become a trusted, and indispensable source of business news and analytics, within financial services and its associated supply chains and ecosystems
