The use of payroll software has been increasing in recent years. This is because it is so beneficial to both employers and employees. There are many benefits, but also some drawbacks to using this type of software over other methods like paper or spreadsheets. When deciding if you want to start using payroll software for your company, make sure that you know the pros and cons before you commit.
Below are the pros of payroll software that you may want to look at:
- Better control of payroll flow.
With payroll software, you can focus on your business instead of the tedious process. You have better control over all aspects including creating and viewing reports as well as paying employees and taxes because with their help it’s easier to manage things from afar.
A payroll system also ensures accuracy with calculations, which is vital for all businesses who want a detailed overview on how they are doing.
- Save more on the cost of payroll services.
With a payroll software, you can enjoy the perks of spending less on payroll services. You’ll be able to create employee profiles, track time and attendance data with ease, calculate retirement benefits for employees – all without having to hire an expensive accountant or rely on your own human (read: imperfect) math skills.
- Strengthen payroll security.
The amount of time it takes to access your payroll information can be greatly reduced if you have control over the servers that store this data. Not only does having direct contact with these servers mean a faster response, but also reduces chances for someone else gaining unauthorized access because they would need physical entry into your company’s premises in order to do so.
Meanwhile, below are the cons of using a payroll software:
- It can be time-consuming to set up and fix when wrong data is entered.
Your company’s time is a valuable commodity and mistakes are costly. You have to be careful, but you don’t want the hours spent on payroll to take away from other aspects of your business-like marketing or customer service
The importance of running accurate payroll cannot be stressed enough- it takes up so much time that if there were any errors in calculating payments, they could cause big problems for employees who depend on them as well as affect the bottom line of businesses which rely heavily upon their employee base.
- Expensive overhead cost.
Payroll software can be pricey. Some have an annual fee, too, which means you should take that into consideration when looking at the big picture and calculating overall cost.
Some people think that for the money they’re spending on their company’s payroll system–whether it be annual costs or upfront purchase prices–they should have full control over how employees report time off and pay wages. However, many of these programs do not allow this level of customization which can result in inaccuracies across different departments and leave your business open to mistakes like underpaying some workers while others get paid twice as much.
- It takes time to master the software.
Entering payroll can be complex and the learning curve could also be steep. From confusing user interfaces to complicated calculations, there are a lot of challenges that come with this type of software. Companies need different types for employees, so it is important to find one which will work well for your business’s needs.