For employee protection, there are laws in place which state that each employer, whether large or small, is required to process accurate and timely salary payments to all its employees. When employees are paid promptly, a business can expect them to continue to be driven and motivated.
There was a time not too long ago when almost all companies used to manually tabulate and input their payroll data. This regular activity required a lot of manpower and had a fairly high propensity for mistakes. Payroll in companies, whether they were local or multinational, big or small, was usually the responsibility of accounts departments where the bulk of the process was managed by Payroll Coordinators. This function’s task was to liaise with all the employees and was responsible for entering employee work hours into the Time Reporting system for payroll processing. Payroll coordinators simultaneously used to check for underpayments or overpayments to staff and make adjustments accordingly in the next cycles. Over the decade, payroll processing has gone through a major transformation thanks to technology advancements, resulting in cloud-based solutions that can help organizations streamline their business operations and run more efficiently. Moreover, small and medium-sized enterprises (SMEs), specifically, are now able to outsource their payroll processing and focus on their core business activities. There are a number of reasons that make outsourcing of payroll functions attractive for the SME sector:
1. Payroll is defined as a non-core function which essentially means that you can’t charge your customers for it, making it an ideal candidate to outsource. If you as a small business owner were responsible for taking care of accounts, then it frees up your time considerably to focus on more essential projects and further expand your business. In cases where small enterprises had employees working on managing payroll accounts, outsourcing this function to a cloud-based payroll solution will give you the option of either reducing your headcount and saving money or utilizing those employees in a more substantial role and increasing productivity.
2. Efficient payroll records can clearly show whether a business is being managed cost-effectively or not, by giving the management a better understanding of their cash flow. It can point out if certain employees are being overpaid for their tasks causing the business to lose money. In such a scenario, entrepreneurs can identify the cost overruns and optimize their staffing levels which has a direct and immediate impact on the profitability of any business enterprise.
3. A lot of payroll service providers offer online access, which allows the business to provide its employees access to their payslips and tax-related information through secure logins. This results in better transparency leading to better employee satisfaction.
Payroll service providers today are offering end-to-end solutions which include basic payroll calculations, statutory compliance, tax withholding and deductions, and finalizing bank files for depositing employees’ salaries directly into their bank accounts. Let technology manage payroll efficiently for your employees as you focus on what’s truly important for efficiently managing your enterprise, all the while reducing costs and risks.