One of the important functions to
manage business is handling the human resource processes. And, among the issues
one would encounter about human resource function is handling the payroll.
Payroll departments are the backbone of any business and managing these
processes efficiently is as important a task as conducting other business
operations. A manual payroll system is a hectic task; a company with few people
can maintain a manual payroll process, however, it is a time consuming task and
frustrating to try and run an HR or payroll shop with a mismatched puzzle of
spreadsheets and it only gets more complex as your company grows.
Payroll administration is a burden
to small companies and at the same time a very crucial activity which is
repeated every month involving complexities related to calculations, deductions
and statutory regulations. While many companies may go with processing the employee
payroll side manually, this is not achievable amidst growing business. A robust
and cost effective business payroll software is a must to handle payroll
processes in order simplify the task and to capitalize on the efficiency in the
long run of the business.
Small businesses are often too small
to justify the cost of employing their own HR department. In these cases the
responsibility of payroll administration can fall on anyone, from the managing
director to administrative assistant. While they can go with handling the
payroll manually, but this is not just right way and a payroll solution early
in the business lifecycle help save both time and money.
Payroll processing is an error prone activity - If organizations have just one
or two employees it may seem relatively easy to compute salaries outstanding,
taxes etc, but as small business starts adding employees they find spending
more and more time in computation of salaries including variable pay. Errors
are common in the full and final settlement and increases when employees join
in the middle of a term as the processes are manual. Ultimately, businesses may
find that without the right program, business cannot grow as quickly as
planned.
A payroll solution software or
program could make small and medium enterprises improve the overall operational
efficiency. It helps in Computing salaries including statutory computation of
PF and ESI, Reimbursements as per CTC norms, maintaining employee master
details and correspondence in respect to letters, emails and documents in an
organized manner, Keep track of Employee leave taken and loan availed.
The second reason to consider this
type of payroll software is that it makes meeting any tax obligations much
simpler. Calculation of Income tax is another routine and pain staking activity
that needs to conform to government regulations and norms. A good software
package can help to automate this activity for greater efficiency and accuracy.
For a small and medium enterprise,
investment in software to automate processes is crucial in terms of cost and
benefits. That's why it is important to choose a solution which is easy to use, customization to the specific business situations, scalable and robust with
tools for making software meet the needs of growing business. Essentially, it
should help to streamline the entire process, making the task of processing
payroll less time-consuming and error free.
When we take it in Indian scenario
regarding software vendors for payroll software, we can find two kinds of
vendors. First one is very small companies providing payroll software and
second one established big software players.
While deciding on payroll software
buying we need to keep in mind:
- Compliance with tax rules and regulation
- After Sales support
- Software upgrade support
- Customization as per organizations need
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