The world of business software is much more accessible for small companies due the convenience and affordability of the cloud moving to the mainstream. This means SMBs no longer need to come up with the same scope of investment they’d have needed in the past to set up and maintain costly hardware-based solutions on-site.
Payroll software is no exception to this ever-growing trend, and more small companies are investing in a solution earlier to help with efficiency and accuracy when it comes to paying employs, calculating and filing taxes, and much more.
Using a payroll software solution will inevitably bring benefits to any size company, however SMBs have perhaps the most to gain from leveraging a payroll system early on in their growth to create more efficiency sooner, and free up more time for other more strategic tasks to move the business forward.
5 Reasons Your SMB Needs a Payroll Software Solution
Here are five key business bolstering advantages that SMBs can gain by implementing a payroll solution.
1. Increased Efficiency
Efficiency is key in a small business. When you’re first starting out, you’ll likely be running on a lean budget with only a few key employees who are helping you scale your business. During this phase, having an extensive HR department in place or automating your payroll functions may seem like a goal that’s too lofty or something that you should explore when you’re bigger, more established.
But the opposite is true today. Payroll software is easy to use (even for non-accounting professionals) and can be implemented for a price well within your SMB budget. With payroll software in place, you’ll eliminate manual tracking and payments which will help your teams work more efficiently and save time processing payroll.
The largest hurdle for SMBs systemizing payroll function in the past was cost, but the prominence of cloud-based software solutions has made it possible for SMBs to afford business-changing technology much earlier on in their businesses.
According to Software Advice, small companies typically devote 1-5 hours on internal payroll tasks and those who choose to outsource are paying an outside firm anywhere from $100 to $1000 per month for payroll services. In addition to cloud payroll software being affordable enough for an SMB to consider, you’ll also be able to enjoy cost-savings (both in time and money) by using a payroll software system in your SMB.
3. Reduced Risks, Errors, and Fines
Payroll software helps eliminate errors that can come with manual data entry and payroll processing. These solutions will ensure that your employees are paid accurately and on time, as well as streamline things for your business when it comes to taxes and compliance. Payroll software automatically accounts for taxes and compliance, you’ll reduce your risk or error and limit your liability (and avoid hefty fines that come with payroll tax errors or missed deadlines).
Payroll software is designed to automatically apply the required taxes to tax deductions and track payments so all of your records are updated and ready for tax time, with as little hassle as possible. Many solutions even have payroll tax experts on staff to consult businesses who are using their systems.
5. Competitive Edge
Cloud-based payroll solutions give even small companies the option of automating and systemizing their payroll tasks, which certainly boosts efficiency, but perhaps more importantly, drives competitive advantage and gives you more of your most valuable commodity- time. When you can automate your payroll and tax processes, you’ll get back time that can be funneled into growing your company rather than spending it on manual (albeit necessary tasks).
According to a recent survey by Sierra-Cedar HR Systems, HR software (including payroll features) was highlighted as a “major differentiator” that’s predicted to aid small organizations in outperforming their competition. Small businesses are creative and agile by nature, and payroll software can help your SMB excel through an array of business benefits.
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