It is not uncommon for family businesses or small businesses to start out with very basic operating software. Payroll may be managed through a low-cost or free business software application or program. This can be an effective way to save money. It can also have hidden costs and problems as the company grows and the number of employees increases over time.
There are some key signs that indicate it is time to upgrade your current free or low-cost software to an advanced option in payroll software. Recognizing these signs and upgrading helps to prevent unhappy employees, costly mistakes, and problems with staying current with compliance requirements.
Missed Payroll
Trying to complete payroll manually or using basic software programs will result in problems with meeting payroll dates at some time. This could be due to human error, a program glitch or crash, or any other number of problems.
Employees expect to be paid on time. Failure to provide direct deposits or checks to employees can result in your business earning a bad reputation.
Need to Automate
Using cloud-based or web-based payroll software allows the business to automate basic functions. This is essential if the Human Resource department is struggling to keep up with recruiting, interviewing, onboarding, and managing all current employees.
Increased Cost of Operations
Through streamlining the process through the use of payroll software, your business can offset the rising costs of operation as the business grows. With the software managing everything from payroll to taxes and reimbursements, there is no need to hire additional employees for back-office management.
Investing in quality software to manage payroll and related tasks also provides real-time reports, analysis, and full compliance with all tax and labor requirements.
