Payroll is vital for your business
If you have employees, you need to pay them and collect taxes. This is called payroll – the managing of payments to your employees and the resulting taxes. You can use payroll accounting software to handle your payroll operations in-house, we call this self-service payroll. In this guide we’ll investigate how that might work, to help you decide if it could save your business money.
What is payroll software worth to your business?
While some accounting systems comes with payroll built in, other payroll software will cost you extra to buy. The important question is whether that’s a price worth paying for your business. In other words, will payroll software save you more money than it costs? Here are four questions to ask yourself.
What will the software cost you?
Research the market. Find out how much the various types of software cost, bearing in mind some will require regular updates or monthly subscription fees. Some software lets you have unlimited extra users free of charge, which could save you a lot of money.
How much does payroll work cost you now?
This is the other part of the equation. One way to estimate this is to add up the total amount of time spent by you and other people in your business doing payroll work. Look through the list of payroll tasks earlier in this guide and add up the time you spend on them. Assign an hourly rate to this work. Multiply the two together and calculate the yearly cost of payroll-related tasks for your business.
Will the software help your business stay compliant?
When you have payroll and accounting as one solution like HRMS in Dubai, it reduces the risk of errors that are common with manual data entry. With automated and connected software you’ll have peace of mind knowing that you’re compliant. Ensure that the software can support meeting your federal and state payroll tax reporting and payments.
Why can’t I manage payroll on a spreadsheet?
It’s common for businesses to use Excel for payroll, but spreadsheets are often riddled with errors. For people who know how to work spreadsheets to their full potential, these programs can perform highly complex calculations. But many small businesses forget that it’s a complex application and don’t restrict it to those with expertise.
As a result, many businesses use spreadsheets to help with payroll and find it more difficult than they expected. With regulatory compliance factored in, your business will be susceptible to financial penalties if you don’t move from Excel to proper accounting and payroll software like HR Software for small business in Dubai.
Four key benefits of online payroll software
There are numerous options available. Some products are designed to run on a single office PC, but these days the newer options are capable of running online, using the cloud. There are significant advantages to this, such as:
Anytime anywhere access
If your computer crashes, all your data could be lost. There’s no such issue with cloud-based online payroll software. Just log in from another machine and carry on.
Invite your bookkeeper or accountant into your payroll software to help manage it remotely from wherever they are.
If an office laptop is lost or stolen, all your vital payroll information might be lost. Or worse – financial details could be hacked, potentially leaving you or your staff out of pocket. Cloud-based tools use strong encryption to keep your data secure and online, reducing the chance of data loss.
Work from anywhere
Need to pay someone remotely when you are out of the office, or while away on a business trip? No problem – just log in remotely at any time and access what you need.
So online payroll software can do everything that conventional products can do, but with the added advantages of the cloud it offers much more. It frees you from your computer, your desk and even your office.
So, can payroll software save you money?
The answer is yes – but only if you choose wisely. The right payroll software will more than pay for itself in the long run, by reducing the amount of work you have to do manually and ensure you meet all your federal and state payroll obligations.
So if you do your research and get the right software (preferably cloud-based), then you’ll be able to spend less time processing payroll.
That will leave you free to do what you do best – running your business and making it grow.
For more understanding of HR and payroll software in UAE, contact our experts.