One of the first rules of new-age businesses is: “If you can automate it, you should”. Payroll management is among the most important processes in any company.
Manually doing payroll isn’t necessarily hard, especially for smaller businesses. However, it can be very time-consuming and there’s a significant chance of error.
This is where a Payroll Management System – or software – comes in.
What Does a Payroll Management System Do?
In the most basic terms, a Payroll Management System is a type of software that automates a company’s payroll and its accompanying processes.
Depending on the type of business and the different jobs within it, the main tasks of a Payroll System include:
- Time tracking – hours worked, adherence and attendance, holidays, off days, etc.
- Calculating wages – salary totals, overtime compensation, benefit payouts
- Settling taxes – both for your employees and the company
- Processing additional employee-related costs, such as travel expenses
- Compiling and keeping financial statistics
- Paysheet and invoice creation and distribution, and more
A Payroll Management System typically comes as a part of a larger business management software.
If it comes separately, the information must be added to it manually or imported through other integrated software, such as time trackers.
Payroll software must be programmed to comply with company policy, employee contracts, labor laws, tax regulations, and similar legal requirements.
This can also easily be achieved by incorporating your Payroll Management System with the right HR software.
Advantages of Using a Payroll Management System
In the early to mid-2000s, we’ve seen the rise of outsourcing payroll and similar administrative processes to companies specializing in HR management.
For a while, it seemed like this was the next step for human resources.
Most companies, especially larger businesses, found that this was cheaper than doing things internally.
However, with computers and the internet becoming an essential part of work life, software capable of completely automating a company’s payroll is readily available.
Here are some of the benefits of using a Payroll Management System:
- Saving time and money by automating mundane processes
- Calculating wages accurately and reliably
- Removing the risk of human error
- Processing and keeping company records
- Gathering all payroll information in one place
According to the American Payroll Association (APA), automation reduces payroll-related costs by as much as 80%, mostly by removing human error margins.
Payroll errors don’t just affect your employees negatively, they can have serious legal consequences for the company.
The Importance of Accurate Time Tracking
Time tracking is a crucial part of HR processes such as payroll management.
Some employers might object to automated time tracking, citing employee trust.
However, time tracking systems have the opposite effect.
Both the employer and employee know the information gathered by these systems is trustworthy.
Everyone can use it to their advantage:
- Employees can rely on them to accurately evaluate their labor
- Employers can rely on them to improve time efficiency within the company
Having accurate information about time spent on work gives everyone an insight on company and individual performance.
This data can later be used to increase productivity and improve your business.
A time management software should track:
- Work hours/days
- Time spent on/off
- Task and project progress
- Work schedules and calendar activities
- Employee performance, and similar
Modern time tracking software also manages the data it collects, helps you spot outstanding issues, reminds you of approaching deadlines, finds room for improvement in efficiency, and is integrable with other HR software.
You Can Trust AppsCo One With All Your Time Management Needs
AppsCo One is an HR master-management software with a state-of-the-art time tracking tool.
The app can be customized based on your company’s needs and is capable of adapting any HR system and policies.
AppsCo One is user-friendly and completely cloud-based, meaning you can access it through the internet using a variety of devices (phones, tablets, computers).
You and your employees can use AppsCo One to easily process work hours, schedules, tasks and projects, time spent on/off, holiday requests, and more.
The app is integrable with other popular software and capable of importing and exporting data.
This means you can completely import your data to AppsCo One, or export the information gathered by it to your Payroll Management System.
Most importantly, all of this can be achieved using just ONE app.