8 out of 10 small businesses in America still rely on manual processes to undertake various tasks.
Most of these companies use pen and paper to manage their payrolls. They argue that it’s costly to purchase payroll management software or outsource this service. Yet, these businesses are mistaken as in the long run manual payroll process is more costly.
Yes, you’re not spending money on the manual processes but they’re costing your business and you should avoid them.
Keep reading to learn why you should avoid a manual payroll process.
A Manual Payroll Process Is Prone to Human Errors
Despite your best efforts to be careful, you may still make errors when doing payroll by hand. The reason is that most of the time you’ll be in a rush to complete this work and pay your employees on time. So, you’re going to end up paying your workers the wrong amounts.
To overcome these errors you should weigh the need small business payroll management system. The idea is to automate this task and thereby minimize errors.
Payroll by Hand Is Time-Consuming
It’s tedious and time-consuming to complete your business’s payroll by hand. So, you’ll be ignoring other core business functions when doing this work. Besides, even if you have an HR department you’re lowering its productivity by having a manual payroll process.
So, to save time and always pay your employees on time invest in a payroll system or outsource this function. The goal is to free up time to focus on key business activities and boost revenues.
Manual Payroll Leads to Compliance Problems
Although you assume that the manual payroll process is free you risk making grave compliance mistakes. For example, you may classify an employee in the wrong taxation category thereby remitting the wrong tax amount. When the IRS discovers these errors your business will face stiff penalties and fines.
In many instances, these penalties and fines are more than the cost of seeking professional payroll processing services. So, to enhance compliance and avoid these unnecessary costs, avoid manual payroll process.
It Compromises Data Security
Your small business has a legal and moral obligation to protect your employees’ payroll information. It’s however challenging to enhance data security when doing payroll by hand. The reason is that it’s easy for unauthorized persons to access this information.
Understand that it’s demoralizing when employees learn that others know how much they earn. The reason is that most of them want their paycheck information to be confidential. So, to enhance data security you should source for professional payroll processing services or buy payroll software.
Boost Business Growth by Investing in Professional Payroll Processing Services
To give your small business an edge you need to avoid a manual payroll process. So, consider seeking professional payroll processing services from a reputable company. You want to avoid human errors and enhance data security by seeking these services.
Are you ready to make this big step of moving away from manual payroll processing?
If so, call us for amazing payroll and HR services.