As a business owner, time is precious to you. Those couple of hours you spend every few weeks slogging through payroll restrict your ability to manage more important aspects of your company’s operation. Luckily, you have options. In fact, with the right software, payroll can take you as little as 10 minutes a month to complete. Here are a few other reasons why payroll software is a must for your growing business.
- Make fewer avoidable mistakes
There are few better ways to cause a serious employee-employer conflict than payroll mistakes. A simple accounting error on your part could lead to mistrust from employees who feel that you are not valuing their work or acknowledging their rights. Even small mistakes can make employees question the integrity of your business, which might make them more likely to seek out other opportunities.
Payroll software eliminates this risk by automating such elements as the calculation of hourly wage, payroll tax, and more. Additionally, it makes accessing data and payroll history easier for both you and your employees, which in turn allows you to clear up disputes quickly – or possibly before they even occur.
- Make taxes a piece of cake
While regular payroll accounting might only take up a couple of hours each month, end-of-year taxes are a different story. According to a 2015 infographic from SCORE, more than half of small business owners spend more than 40 hours a year doing taxes and working with accountants, while 40% spend more than 80 hours each year. To put it simply, that is over two 40-hour workweeks. Payroll software can do a lot to simplify and automate your tax-season work, once again freeing you up to get back to what you do best – building an awesome business.
- Keep your data safe
Employee information, tax documents and your business’s financial records are private. However, using your personal computer or paper documents can jeopardize that privacy. For this reason, payroll software is designed with security in mind, to make sure that everyone has access only to what they need and are authorized to see.
- Avoid costly legal problems
Making mistakes in accounting can have serious repercussions on a business – particularly one that is working on getting off the ground. For example, the IRS can charge you with a tax negligence penalty of 20% on the amount you underpay during tax season. This can be a crushing blow for businesses of all sizes, particularly those running on a tight budget. Payroll software can help you avoid such errors in the first place.
Bottom line: payroll software streamlines the entire payroll process
Whether you are the owner of a startup with 50 employees or an established business with thousands, automating your payroll with software could be just what you need to free up time, simplify taxes and enhance your data security. The list of payroll software available today is long and varied, so finding one that corresponds to your needs should not be hard. So make the switch today – you will thank yourself for it.