In 2020 many of us thought we'd all be using robots at work in paperless offices. That hasn't happened yet, but we do have online payroll software. Or do you?
Amazingly, there are still vast numbers of businesses still doing payroll by hand despite the wide variety of online payroll software available.
Manual Payroll Processing In a Digital Age
According to one recent source,
"One-quarter of small businesses (25%) track their finances on paper instead of a computer, according to a new survey by Clutch, the leading B2B research, ratings, and reviews company.
Manual accounting is more time consuming, more prone to human error, and often faces greater damage from physical disasters, such as fires or floods. The survey also reveals that 45% of small businesses don't have an accountant or bookkeeper."
This leads to a number of productivity, accuracy, compliance and security issues for these businesses. Are you one of them?
For smaller businesses, a paper-based manual payroll process might work for a while, but it is a difficult and labor-intensive process to maintain. And this is a one of a number of reasons to consider transitioning to an online payroll process.
What is Online Payroll Software?
Essentially, online payroll software are web-based payroll applications that provide features such as tax filing, compensation management, and time and attendance tracking. The "online", or “cloud-based,” aspect of the payroll software refers to those systems hosted in the cloud, on the software vendor's servers, as opposed to strictly in-house.
Because many businesses are striving to be environmentally-friendly and actively look for ways to reduce their corporate footprint, a benefit of opting for a cloud-based payroll computing option is that it provides a "green" choice.
Along with a number of operational benefits, it can greatly reduces paper usage, save money, and provide a much less labor-intensive approach to payroll processing.
For most owners, saving money may be the main reason for going with an online, or green payroll, process. For their managers and payroll staff, the objectives may be more about saving time, materials, and other tangible and intangible resources. And the truth is that all of these considerations are both valid and the objectives achieved with an online payroll solution.
This is because doing payroll manually in-house has expenses.
In fact, according to the SBA, 46 percent of small businesses spend between $101 and $500 per month on payroll costs. This doesn’t account for any costly errors that might be made either. And, as a business adds employees and their payroll becomes more complex, they'll incur additional expenses.
Doing More With Less is Not a Strategy
Unfortunately, many business owners and management teams simply rely on adding hours, adding lower-level admin staffers, or spending large amounts of money to upgrade their outdated payroll software.
And they are doing all of this hoping to stay on top of a growing payroll management process. But there is a "point of diminishing returns" when it comes to manual payroll processing, however.
One of the problems is that payroll mistakes begin to occur more frequently. And errors and omissions in your payroll process can be expensive and dangerous if they aren't caught and corrected. The reality is that, between the IRS and the state labor boards or commissions, the combination of fines and additional taxes and fees can be devastating for a business.
And, in addition, there is the very real and embarrassing impact on employee morale and the reflection on your own integrity.
Ultimately, implementing a well designed online payroll process utilizing an online payroll solution like Time2Pay from Accuchex, can free up valuable time and resources for you and your company. In fact, your savings are are essentially doubled since every hour that's not spent processing payroll is an hour that can be put towards additional productivity elsewhere.
"Go Online" With Your Payroll Process
While investing in the best available cloud-based solution for your payroll process is a great option, another great alternative is outsourcing.
Outsourcing your payroll process can save you staff time, provide better security and accuracy, and be a great payroll solution for your businesses. In addition, payroll services such as Accuchex offer many related services like insurance solutions, retirement planning, and HR functions.
However, many small and medium-sized businesses may not feel like they can afford third-party payroll and HR services. Fortunately, payroll service providers, such as Accuchex, offer a premier online payroll software solutions called Time2Pay.
Let Accuchex help you manage your HR needs, payroll processes, and other compliance demands. To learn more, get our free download: Payroll Outsourcing Guide to help you make an informed decision or call Accuchex Payroll Management Services at 877-422-2824.
Remember: Choosing the right payroll solution provider for an online payroll service will save you time and money, and it will benefit your employees while reducing your impact on the environment.