The best payroll systems available have allowed businesses to streamline how they handle payments to employees. Modern payroll software has come a long way since the days of marking attendance and calculating wages. What if we told you that it was much more than that? When it comes to evaluating how successful your company is, what factors do you consider? Most business owners observe individual aspects, such as sales, to determine their performance during a specific period.
However, one such nuance that is underestimated in this endeavor is the payroll system. A routine business function that pretty much goes through the motion every month, the payroll system of any company is simply seen as a medium to facilitate the payment of salaries and nothing more.
What Are Payroll Systems?
Payroll systems are now holistic systems that can generate in-depth reports, adapt to shifting payroll system software environments, and even enable you to pay your employees through your mobile if you can’t get in front of your desktop on time to access the payroll system.
Payroll systems manage and automate the essential functions of HR, such as compensation, salaries, bonuses, perks, benefits, holidays, and communication between the company and the staff. A sound payroll system reduces the risk of non-compliance, governance issues, and human error. Having an updated payroll system is integral to hiring, managing, and retaining employees in any company.
So how are out-of-date payroll systems negatively impacting your business without your knowledge?
Old Payroll Systems Don’t Measure Trends Or Report Them
As benign as it may seem, your company’s payroll system cycle can reflect much about your business's performance and cost-effectiveness. This means regular reports from your payroll system software can contribute to broader areas, such as mapping top and bottom-line growth.
Other critical pieces of information can include compensation reports, which comprehensively display all forms of compensation an employee may have received during their tenure of employment – in the form of charts and diagrams using your payroll system.
Reporting features of payroll systems can also calculate insightful statistics such as the average wages of employees within varying designations, giving the company a good idea about whether they are paying industry-standard wages to their employees. Most modern payroll systems allow businesses to go paperless to adopt green initiatives in HR.
Old Payroll Systems Are Static, Which Means They Can’t Be Connected To Other Applications
This is where significant company developments (such as a merger or acquisition) can be improved, as old-school payroll systems may need to be more flexible to changes. Shifting from one payroll system to another will require a tedious and time-consuming export process. Two, combining the old payroll system with other software, such as a broad-based HR application or an ERP, will be difficult if possible.
What’s more, older payroll systems are also out of bounds to employees. Giving your workers access to their real-time compensation information is a valuable perk that the latest payroll systems can offer.
If your payroll system is more than ten years old, looking at options that will help you upgrade your current application or help you transfer over to a newer product is highly recommended. Access to features such as reporting and easy synchronization aren’t extras but indispensable requirements in today’s business world.
Latest Trends In Payroll Systems
Now that we know the potential disadvantages of an outdated payroll system let's discuss some of the latest trends in payroll systems for accountants.
Automation Through AI & Machine Learning
Payroll software is becoming smarter with machine learning and Artificial intelligence. Modern payroll systems are equipped with AI to enable automation in an HR's repetitive and tedious tasks, giving them more time to focus on the productivity and efficiency of their employees. This automation helps save precious time for the employees and enables the companies to scale at a much larger speed.
Work from Home and Remote work
Working from home became the new normal after the Covid 19. Millions of Americans and others worldwide work from home during the pandemic, and companies offer their employees an extended period of remote work. Modern payroll systems enable corporations to track their employees worldwide and allow them to provide the flexibility of working from home while still being efficient in their tasks.
Payroll Cloud Software
SaaS payroll systems and cloud-based payroll software solutions are now leading the payroll software industry. They can be accessed anywhere through the web browser or mobile app and provide real-time information to enable quick and informed decision-making.
Interested to learn how you can upgrade your existing payroll software? Following are some of the considerations while making a payroll software comparison.
Your choice of payroll system must be aligned with your overall business strategy. Understand the HR needs of your company, regulatory requirements, and the needs of your employees and business process to decide on a payroll system. Also, consider the current technical infrastructure of your company and how a new payroll system can be implemented seamlessly with the company's technical infrastructure.
It is also essential to consider your budget and the cost of a payroll system. The pricing structure of the different payroll software systems varies. Some charge a base price with the add-on costs, while others charge a per-user fee. It would be best if you decided, according to your budget and the number of employees, whether flat pricing or a per-user cost for a payroll system that suits your business needs.
Payroll System Comparison
Check our payroll system reviews based on the pricing, functionality, and usability ratings. You can also choose the best payroll software according to the size of your company, needs, and platform.
Here is a payroll software list of some of the most popular payroll software. Once you have shortlisted the best payroll software for your company, you can discuss the functionalities in detail with the vendor and ask for a demo to clearly understand that particular payroll system.
Finding an updated payroll management system that is affordable and has the required functionalities is essential to your company's future growth.