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Why You Need to Automate the Payroll Process

Written by on December 30, 2019

A resourceful entrepreneur is always on the lookout for solutions that facilitate different areas of business. Some strategies save time, some money, while the most optimal ones achieve both.

The payroll process is one of the business operations that need to be handled with care so as to avoid dissatisfied employees and belated wages which can all result in loss of employees and not finishing projects on time.

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No matter how happy your team is, they need their income to survive, so this area is one that is best taken care of on time and with utmost accuracy. So, here are a few reasons to show you that automating this process is the optimal solution to this problem. 


It enables precise time-keeping

Although most of your employees work from 9 to 5, sometimes they have to leave earlier while other times they might work overtime. All these ‘irregularities’ have to be noted because they affect the end sum your employees receive.

You wouldn’t want to omit to reward somebody who has worked overtime or overpay somebody who keeps being late to work. 

The question of keeping track of the time employees spend at work is even more significant if you have employees working in shifts, covering weekends, etc., which makes it crucial to work with accurate numbers to ensure everyone gets paid properly.

There are a number of ways you can ensure that time-keeping is precise even if the employees enter their time logs manually because the system can automatically report in case an atypical entry is made or notice some irregularity while adding up.

The automation is even more precise if the employees use swipe cards since that reduces the possibility of human error to a minimum. 

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Automated payment calculation for avoiding mistakes

Just as with working hours, calculating the payments manually leaves space for human error, especially if you have more than a couple of employees. The gross-to-net earnings are calculated based on the data entered which is also one of the reasons the automation is necessary – the system can report irregularities but it is as precise as the entries are correct.

One of the many options that these automated systems have is calculating payments of different types, such as overtime, bonuses, hourly, double-time, wage deductions, commissions, etc. Besides ensuring that the system will calculate the wages precisely, you can reward your employees by introducing personalized employee income cards that allow secured electronic funds transfer and quick access to funds.

Since there are no cashing fees in that case, the employees will save more money and so will the employers because there will be no unpredicted costs due to omissions or some fees. 

Paperless data collection as an eco-friendly strategy

When you automate the payroll process, you ensure its accuracy and efficiency while also aiding green thinking. Many companies have implemented eco-friendly strategies and they strive towards raising awareness among other businesses.

This is why automating the payroll process is an excellent idea: the data collection is entirely paperless which not only makes it less costly for the employer but it helps the environment as well. 

There are other ways to support a paperless office, among one of the most popular ones are digital invoices and scanning the incoming documents. Another practical solution is to have boxes around the office where you collect the used paper that you will recycle afterward.

It is crucial you instill the green thinking to your employees as well because they are the ones who will be putting your wishes to action so they should always double-check if a document really needs to be printed and discard every used piece of paper onto the pile for recycling. 

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Effortless task management for more efficient time allocation

In business, time is everything so both entrepreneurs and employees strive not to waste it but put it to good use. If you take some manual tasks off the hands of certain employees, you can expect to see an improvement in some other field, now that their time and efforts are directed elsewhere.

When you automate the payroll process it allows for a more efficient time organization which results in more productivity. 

Many payroll-related processes can be scheduled and completed automatically with high accuracy meaning you wouldn’t need additional employees covering that task while your regular employees can direct their focus towards something that requires creative thinking.

You should, of course, always have somebody overseeing the system from time to time since, after all, the system is only good as the entries, as mentioned. To ensure optimal results, the basic conditions need to be set correctly.

Wrapping up

The benefits of automating the payroll process are many and they boast time and cost-saving as the crucial ones. This system is simply more efficient since your employees are concentrated on other tasks and there is less space for making an error. Also, the process in its entirety depends on the data accuracy which then makes the data more precise and stored more safely.

Environmentalists also approve of this manner of thinking because it eliminates the need for paper checks. 

Wrapping up, to automate the payroll process means to increase efficiency, save time and money, reduce errors, and help the environment – these many benefits are the reason why you shouldn’t have any hesitations when it comes to automation. 

Lauren N. Wiseman is a marketing specialist and author that has many articles published with main focus on clients who want their personal and professional brands to grow in the fast-changing and demanding market. She believes in a holistic approach to business. If you believe that people can be driven through life with one strong moto – hers would be Kindness, always.

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