Payroll is vital for your business
If you have staff, you need to pay them. This is called payroll – the managing of payments to your employees.
Some Australian small businesses choose to do payroll manually, keeping payment notes in a spreadsheet or other document. Others might outsource payroll to an accountant or bookkeeper, or even to a dedicated payroll company.
These are valid choices, but there's another option. You can use payroll accounting software to handle your payroll operations in-house. In this guide we'll investigate how that might work, to help you decide if it will save your business money.
What to consider for payroll
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Payroll isn't as simple as it sounds. You have to pay your employees regularly, of course, but there's a lot more to it than that. Small business operations might include:
This is a lot to think about, which is why every Australian small business needs to carefully consider how it manages payroll.
The cost of compliance
If you're running a business in Australia then you need to know about compliance. This means keeping your business in line with government legislation and regulations. It includes taxation, reporting, employment laws and payroll.
Compliance takes time, and time is money – your money. This is particularly true for small businesses, where owners often have to juggle several different hats, such as director, bookkeeper, HR manager and sales lead. If you work out how many hours you spend keeping on top of Australian-specific compliance, the answer might surprise you.
So it stands to reason that anything that saves you time can also save you money. Quality software can certainly save you time. But can it save you enough time to offset the cost of buying it? We'll look at that question next.
What is payroll software worth to your business?
While some accounting systems come with payroll built in, other payroll software will cost you extra. The important question is whether that's a price worth paying for your business. In other words, will payroll accounting software save you more money than it costs? Here are four questions to ask yourself.
You may also hurt the company’s reputation among employees if you continue to use a spreadsheet. There are a few reasons this may happen. One being that there are constant changes to complex regulations and any problems can cause issues between the business and the employee. Another is the fact that spreadsheets do not guarantee reliability. Unlike payroll software, your data will not be automatically backed up if you lose it.
Four key benefits of online payroll software
There are numerous payroll packages available. Some are designed to run on a single office PC, but these days the newer packages are capable of running online, using the cloud. There are significant advantages to this, such as:
So online payroll software can do everything that conventional products can do, but with the added advantages of the cloud. It frees you from your computer, your desk and even your office.
Choose payroll accounting software wisely
Just as with any other type of purchase, it's important to shop around to get the right payroll accounting software to suit your business. Some of the features that could be valuable to you might include:
It's important that the software you buy is easy to use and reliable. Check user forums and talk to other Australian small business owners to find out what they recommend.
So, can payroll software save you money?
The answer is yes – but only if you choose wisely. The right payroll software will more than pay for itself in the long run, by reducing the amount of work you have to do manually.
So if you do your research and get the right software (preferably cloud-based), then you'll be able to spend less time processing payroll.
That will leave you free to do what you do best – running your business and making it grow.
Feel free to discuss article and your payroll needs with the Straightline team.
Original article sourced from Xero: www.xero.com/au/resources/small-business-guides/payroll/can-payroll-software-save-money/
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