As a startup or internet –based business, you find that the best options available for you in terms of workflow software are often in the form of Software as a Service, SaaS, solutions or Infrastructure as a Service, IaaS. This is usually owing to the nature of the workforce, which is a distributed workforce that it often spread across the four winds and also for practically reasons such as cutting costs and wanting to have as little infrastructural footprint as possible.
The best options for such companies is to consider the use of automated payroll software and as you will soon learn, these types of software do much more than automate payrolls. They are a good all round utility software that can be of great benefit to the fledgling company. However, before we go any further, it is important that we get the definition of payroll automation first out of the way.
Payroll automation refers to using computers in the production of paychecks and managing the payment of benefits for a firm or community. This system is often integrated into the firm’s enterprise resource planning, ERP, system. Its core functions being to manage client relationships, production processes, personnel, invoices and managing all the accounting processes.
Here are some of the benefits that the payroll automation system will have on your firm;
- Digitization–The system collects all the information mentioned above and stores it in an electronic digital format. This improves data collection and makes it easier to do analytics to come up with evidence-based decisions.
- Costs–The American Payroll Association, APA, believes that these systems reduce costs by a whopping 80%. This is due to the reduced mistakes in managing payments and invoices.
- Accounting–It follows all the accounting procedures and makes calculations of holidays and the collective agreements and employer procedures and exceptions among others. In a nutshell, it provides for seamless accounting throughout the enterprise.
- Wages–The system will provide for the computation of wages, down to the hour. It does this by tracking the wages and productivity of every single employee and this information can be easily called up by HR.
- Planning- Since by its very nature the payroll system collects a whole lot of information and captures it in digital format, it can be useful for the following; the drawing, posting, reports and storage of all worker information including the generation of travel invoices.
In combination with the rest of the ERP software and shift management solutions, the system can be a treasure of trove of useful enterprise-wide information, such as the employees’ working hours, overtime hours, worker allowances, holidays and absences. This information can be used to derive plenty of predictive Business Intelligence, which in turn will shape the future competitive direction of the firm. Thus, for an internet marketing company especially the cloud-based payroll system will offer a competitive edge for the company as they will possess all their core critical data in one central location.