A start-up founder has several responsibilities on his mind. In addition to liaising with several stakeholders, he has to consistently ensure that the growth of the company is on an upward track. In that context, it is advisable to streamline some of the routine functions in order to save effort on the part of employees. One of those functions, which can be effectively managed with the appropriate use of technology, is payroll services.

A payroll is an exhaustive list of all the employees, management and staff, who are entitled to compensation from the company. The payroll process is the overall mechanism through which base pay of the various employees is calculated, deductions are made, taxes are accounted for, bonuses and entitlements are incorporated and the final amount is arrived at. It is evident that using software for payroll processing can be a time-saving exercise. Some of the main payroll processing software used are Razorpay, Zoho, Keka, HR Mantra and so on.

In this article, we briefly discuss some of the benefits of using software for managing the payroll operations in the HR department of your company.

What are the benefits?

• Saving time and effort
  
  In case the company decides to deploy a payroll software, much effort can be saved on the part of the professionals in the HR department. Maintenance of the payroll, tracking the lists of various employees, and making all necessary updates regularly can become quite a dreary task. Payroll software can be used to track working hours of the employees as well as other relevant data. This allows the company executives to save time and expended, which can be expended in other areas to grow the company.

• Cost Saving
  
  In case of manual maintenance of payroll, there can be several instances of mistakes in the calculations. For instance, there might be errors leading to overpaying of the employees, or incorrect calculation of taxes.
  
  Also, the investment in acquiring a payroll software is relatively low. It is a one-time cost, since the software has to be purchased online. This is in contrast to hiring professionals who will have to be paid full time salaries. Thus, using a software is in the best interest of especially small business owners - who need to maximise profits and keep their expenses low.
• Data Security
  
  In earlier times, when paperwork was used for filing payroll records, there was always the risk of losing the files. We are familiar with the old-fashioned bureaucratic offices in various organizations, filled with stray sheets of paper. In case the files are misplaced, sensitive information about the employees may be lost.
  
  It is extremely important to protect this data. Using a payroll software ensures that the data is secure. Personal information such as email addresses, phone numbers, or social security numbers are not leaked. They can only be accessed by the responsible executives in the HR office, who have the password to the payroll management software.
• Avoiding mistakes
  
  Accountants or HR professionals are after all, human, and they too can tend to make mistakes. However, mistakes in the case of payroll can be quite costly. In case of payroll being managed through paperwork, a single accounting mistake at one point can lead to mistakes along several columns or several parameters.
  
  Moreover, it can also lead to employee dissatisfaction. It can cause employees to file lawsuits regarding improper payment of compensation under the legal provisions. In case salaries are paid above the actual amount, there would be a problem with the working capital. Thus, it is advisable to work with payroll management softwares, in order to avoid such logistical issues.
• Employee Self Service
  
  A Payroll management software makes it possible for your employees to key in their own payments in to the systems. Self- service portals are provided by several of the payroll management systems. Contributions to the EPF, or the health insurance premiums can thus be duly recorded. In case they have doubts regarding the financial data, or the amount they have accumulated in their accounts, they can also raise doubts about the same.
• Simplifying the process
  
  In case an HR professional does not have adequate training, understanding the accounting process in case of payroll can be quite training. Even with experience, sometimes professionals may experience confusions. Consequently, the payroll software is designed in a user-friendly manner. The main job of the executive is to manually enter the data, leaving the processing part to the software.
• Customer Support
  
  What happens in case your payroll management personnel leave the company? The founder of the startup, of the company, would require to hire new resources. They would have to invest in their training all over again, in order to familiarise them with all the entitlements and deductions applicable to the workers.
  
  Using a payroll management system does away with this issue. With an internet connection, the software will be responsive to software updates that are available online. Upon downloading them, the software will automatically install the latest features, and thereby the latest updates regarding accounting procedures shall be incorporated.
• Automatic Synchronisation
  
  At times, certain payments or compensation may be outstanding to workers at the time of their employment. In case they decide to suddenly leave the company, it can become a logistical issue. The company needs to determine the exact amount that is owed to the employee. They also need to adjust all other deductions as per the day of relieving of the employee. In the case of a payroll software, these data can be immediately synchronized without much hassle.
• Productivity
  
  It is reported that employees become more productive when their salaries are credited to them on time, or even in advance. The payroll software also helps to keep track of the employees work schedules, and paystubs. This ensures that the management has a clear idea of what is going on in the company.

Conclusion

Upgrading to a payroll management software is an important decision for a business owner. They should do the necessary research, and consult fellow founders, or managers. A business owner should choose a software which best suits their organization, and it will have several operational as well as financial benefits for them.