Just How Much Time Does Automated Payroll Save?
Automation in many areas of business have improved productivity and have helped businesses to save money, but automation is not a step to take lightly. There are costs associated with investing and implementing the new technology, and each business will need to carefully analyze the pros and cons before making a decision to move forward with it. Automating payroll is a common step that many growing businesses will take at some point, but you need to know how much time this will save before making a decision to move forward with the implementation of an automated payroll system at this time.
The Number of Employees on Payroll
One of the primary factors that will impact how much time an automated payroll system could save your business relates to the number of employees on payroll. Employees who are salaried and who receive the same amount of income on a regular basis will be easier and faster for you to complete payroll for than those who are on an hourly pay rate and who receive a different amount of income with each paycheck. An automated payroll system may still require you to input the salary and hours worked for each employee, but some automated payroll systems will gather hourly data from clock-in systems that employees use.
The Type of System You Invest In
There are many different automated payroll solutions that are available for you to incorporate into your business. The systems that will save you the greatest amount of time are those that are fully automated. They may collect data on hourly employees, calculate withholdings, keep tabs on sick and vacation time off and complete other steps for you. In many cases, the more advanced automated payroll systems will have a higher up-front cost, but they can save you money through increased productivity in the months and years to come. When payroll is a process that requires one or more employees to dedicate a full day or more of their time to the activity for each payroll period, the amount of time saved can be significant.
You should keep in mind that the use of automated payroll systems can save time, but they will not entirely eliminate the full amount of time that is necessary to complete payroll activities. There may still be some time required to complete the payroll process using the automation software program, and you should factor this into your decision-making process. In many cases, growing businesses that are bogged down by the payroll processing task will benefit from the investment of an automated payroll program, and you can get started exploring the programs today to determine which options may be most cost-effective for your business to use.