Cloud computing is one of the most cost-effective ways of managing your business functions. For small businesses, single cloud-based software can easily record and store all business transactions and provide managerial and strategic reports accordingly.
For any business, regardless of size and orientation, managing the payroll is a complex procedure. From maintaining proper attendance sheet to timely salary disbursements, several variables are to be considered.
In the years gone by since the advent of cloud-based payroll systems, you can consider payroll outsourcing as an imperative cost-minimizing growth strategy. Such a decision will help benefit your business in the following ways:
Cut Down Your Costs
Managing payroll requires technical knowledge and expertise. Every small business has two options in this regard:
- The owner prepares the payroll through detail research and analysis of every labor law (time-consuming); OR
- Employ HR personnel or other experts (can be costly). Why? Because cash flow is a huge challenge for business owners. Owners often neglect their payroll tax compliance responsibilities because they are constrained with resources to pay for a professional employer organization (PEO) to handle their HR, payroll and tax compliance needs
To save time and cost, using a cloud-based payroll system by far provides the business with a more economical choice. In this case, the (outsourced) payroll software is maintained and updated by the Payroll Provider. Clients therefore, have no software related downloads or associated expenses to worry about when using a cloud-based integrated payroll solution. In addition, bottom-line friendly pricing helps achieve huge cost savings.
Reallocate Your Resources
For any business, payroll constitutes the major portion of admin expenses. From computation of payroll to printing of pay-slips, it incurs several overheads.
By means of cloud-based payroll outsourcing, a business can redirect its resources on client management and customer engagement. As the burden to self-manage payroll is eliminated so goes the burden of increased admin expenses. Its costs a fraction of the total cost a company would pay in monthly wages and benefits if it had a full-time person on staff managing payroll.
Compliance with Laws
The outsourced payroll company continually updates the payroll system, with respect to the latest changes in employee/labor rules and tax regulations. This ensures compliance and avoidance of penalties for any non-compliance. Due to financial constraints, most business owners often neglect their payroll tax compliance responsibilities.
Resolves Employee Grievances
Most of your employees’ grievances are payroll-related. Typical problems include:
- Incorrect payroll calculation
- Excessive tax deduction
- Attendance discrepancies
- Working hours adjustments
Integrated outsourced payroll solutions are designed to provide:
- Accurate payroll and tax computation
- Timely tax payment and salary/wages disbursement
- Access for employees to update their payroll account, with respect to any changes in particulars
- Complete and accurate attendance record, productivity record and statistics for performance evaluation.
Aids Documentation Procedures
By providing reliable and accurate electronic data, cloud-based payroll systems provide a basis for audit documentation and quality control review. Periodic productivity analytics and access to payroll insights enable your business to make decisions on training, development and right-sizing as the situation dictates.
To learn more about how cloud-based system benefits your business and improve productivity, feel free to contact us.