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Five Reasons Your Business Needs A Payroll System

Technology is constantly changing, and your business needs to be future-proof. Gone are the days when a notepad and paper was all that was needed to manage your employee’s records, pay and annual leave. The latest software and systems will enable you to keep on top of what’s happening in your business, manage staff, annual leave and pay more efficiently and ensure that reporting back to management is quicker and easier, where required. Payroll systems are increasingly being used by both small and large businesses as a cost-effective, simple way to manage staff and their salaries – here are five reasons your business needs a payroll system:

#1. Monitor your Staff

Payroll systems often come complete with a clocking card system which allows you to monitor the hours your staff are working including what time they start and finish their shift. For shift workers, this system is invaluable, as it allows you to see what time employees arrive at work. Most workplaces expect their staff to be present and ready to start work 10-15 minutes before their shift start time, so with clocking, you’re able to see who clocks in prior to their start time and who arrives at the last minute. This also enables you to track planned overtime and ensure employees are paid accordingly.

#2. Manage Holidays

Annual leave is a nightmare for many companies, particularly those who hire large numbers of staff. If you have employees on part-time or temporary contracts, things can get even more complicated, and managing holiday pay can become even more difficult. The latest payroll systems incorporate software for managing holiday pay with ease, so all it takes is a few clicks and you’ll know exactly what to pay your staff for their annual leave.

#3. Ease of Reporting

As a manager, you’ll often have to report back to those in seniority, and creating and collating these reports can be time consuming and unpleasant. Often, data will need to be pulled from various systems and paperwork to create the detailed report required by Head Office, and for many managers this can be stressful! With the most up to date payroll systems, reporting is a breeze – all your staff’s data including holiday pay and hours worked is stored on one system, so it just takes a few clicks to create detailed reports including all the information needed for management meetings or Head Office.

#4. Managing Temporary Staff

When you hire casual, temporary or contract staff, working out their pay, pay schedule and holiday pay can often be an exhausting process. With today’s computerised payroll systems, managing wages for temporary or even casual staff is simplified – even if you’re hiring event staff for a day or two. Each employee has their own records, which are easy to access and edit, so you can see at a glance who is working for you, what type of contract they are on and when they’re due to be paid – the system will even send out reminders if you wish!

#5. Get Pay Right First Time, Every Time

With a payroll system, it’s easy to keep track of employee loans or subs and even control allowances and deductions. Modern systems allow you to store payment schedules for staff, whether they’re full time, part time or temporary, making it easier to pay employees on the right date every week or month. Different pay schedule templates can be set up depending on staff contracts to enable easier management of pay across the board. This means you’ll spend less time rectifying costly errors made with employee pay!

Investing in the latest software for your business is a great way to future-proof your company and ensures that you’re moving with the times. It will also make your life a lot easier when it comes to managing salaries for your employees and is a worthwhile investment!

Aki Hashmito writes widely for a range of business blogs and websites in the UK.  Her experience working with the latest systems such as Payroll Systems comes from her time in IT support, and she recognises the value these systems can bring to both large and small businesses.