Whether you’re a small business or an MNC, one of the most important thing on the cards at the end of the month is releasing salaries! It also requires you to obey certain statutory compliances laid down by the law. As long as you have a handful of employees to pay, it's common to use some Spreadsheet tool but a lot of complications follow which can cost you a lot of money which you could have invested in your growing business. With the numbers getting bigger along with your growth, it demands you to either employ dedicated “extra staff” to take care of paying other staff or a dedicated Payroll Software, with the latter being more cost effective and result oriented. Glance through the common problems solved by it keeping small businesses in the center frame.
Erroneous Payroll Processing:
The small businesses generally use a Spreadsheet tool and a cross-departmental manager looks after the HR operations. One needs to gather numerous types of payroll inputs such as attendance data, performance incentives, OT, advances/loans/investments and reimbursement claims from multiple files and musters scattered over various company locations. A cloud-based Payroll Software automates the whole process as it fetches attendance data from biometric machines, collects performance data and considers statutory deductions without any human supervision and synchronizes it to a centralized database in order to process it collectively. Thus, as all the information is available in real-time along with repercussions from employee end to achieve virtually zero error Payroll. Perhaps, it is noteworthy that as per the Research by the Center for Effective Organizations depicts that more than half of the HR professionals’ time is soaked by administrative workload. A cloud-based Payroll shall perform all these tasks centrally even if your offices may be in different cities.
Tedious Statutory Compliances:
India is one of the most complex taxation structures and dealing with it requires seasoned professionals to pour in endless hours to file compliances. For any given employee, one needs to keep in mind his CTC and pay components, bonus-performance data and applicable taxation slab with respect to investment/loan proofs submitted. Managing all this information manually on Spreadsheets is cringe-worthy as it involves a lot of hidden work. A Payroll Software on the other end generates various compliance documents such as PF forms, ESIC Challans, TDS certificates, etc which are required on a monthly, quarterly and yearly basis. As an aspiring business, the last thing you may wish legal notice, prosecution or penalty to dent your public image. Thus, spending a little amount on software can save you from spending your capital to fund legal hearings.
Every business wants proper facts and figures before making a decision. Making detailed reports by the conventional method is very tiresome and time-consuming as you need to fetch a lot of data from multiple sources which finally needs a lot of pivoting and formulae. Apparently, trusting a subordinate who may be a new joiner to create reports need not necessarily be bad but not preferable at least. By using Payroll Software, you can get comprehensive reports at any given moment. They are capable of producing detailed salary reconciliation reports, attendance reports, taxation reports, travel and expense reports, company allocated resources reports, etc which are very important for strategic management functions as they provide a basis for sound decision making. Also, when undergoing an audit trail or cost accounting exercise, these reports shall be very useful to your organization. For instance, the employee performance reports are very useful to track down struggling employees who need counseling or relevant pieces of training to help them perform better while the management can incentivize the positive traits in employees such as punctuality.
Thus, a lot of substantial changes to the HR department are possible by transferring the clerical formalities to a payroll software which eliminates the human effort and time wasted in redundant manual processing. Also, with the monthly subscription model, you may pay for only the resources you use which means that you pay as per the number of employees you have which may be 5 or 500. These cloud solutions offer unparalleled accessibility and integration features along with being configurable which helps suit organizations of all size and field.