For small businesses that only have a few employees, doing payroll manually might seem like a small job that’s bearable. But when you do payroll week after week, or even bimonthly, it can become cumbersome. You’re also susceptible to human error.
Luckily, today’s technology makes it easy to process payroll, pay your employees, pay your taxes and keep your accounting services seamless.
So how can payroll software help your business?
Taxes : Gone are the days of manually completing a tax form. Payroll software allows you to electronically file and pay federal and state taxes with only a few clicks. Even better, payroll software allows employees to print off their W2s, cutting down on any wait time for important tax return documents.
Always accurate : Using payroll software, you can carefully set up how much money each employee makes and never worry about miscalculating paychecks or tax forms.
Employees get paid : Everyone knows that small business owners can get busy. It’s not uncommon to hear of a week where an employee or employees don’t get paid. It could be an honest mistake, but to an employee, it can be daunting. They may not see it as a common mistake and could have concerns about the company, which is not good for employee morale. Payroll software provides worry-free payments.
Employee service portals : Keeping employees happy is an important part of the job for small business owners. One thing many employees want is the freedom to look at their paystubs and see how much money they’ve earned for the year and contributed toward taxes. Payroll software gives employees that portal. In addition to paystubs, the software can also show employees how much vacation time they’ve used and how much is left in their paid time off bank.
Seamless growth : As your business grows, payroll software allows you to easily add new employees. If you need to shrink, it makes it easy to take an employee off the payroll and store their records for a determined amount of time.
Connected with your business : Payroll software, like Xero, can connect to your business’ general ledger, which makes your business operations even more seamless. No longer do you have to input payroll data and then re-enter it into your accounting software.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin