10 years ago, you were a startup, working out of your 1-bedroom apartment, banging out ideas till wee hours of the morning. And then one day your ideas became a reality. You went from 1 headcount to 5 to 10 and now, you are up to 100 and still growing. And then reality hits. You’ve made it! Your company has grown exponentially but you’re still running your payroll manually.
Payroll is an essential part of any business, ensuring that employees are paid accurately and on time. However, many companies still rely on manual payroll processing, which can be risky and prone to errors. And everyone knows, happy employees mean happy clients. And now you’ve realized your payroll system didn’t grow with you and now you have to break-up.
So how do you know when your current payroll practices isn’t cutting it?
Human Error
To err is human, but that employee whose salary was affected by that human error might not be too understanding. Human error is one of the biggest risks associated with manual payroll processing. Even the most experienced payroll professionals can make mistakes when calculating hours, deducting taxes, and processing payments.
Time-Consuming
Wouldn’t you rather your team use their skills and knowledge to grow your business? Manual payroll processing is time-consuming, as it requires inputting data, calculating payments, printing checks, and distributing them to employees. This process can take hours, if not days, to complete, leaving little time for other essential business tasks. This can be particularly challenging for small businesses that have limited resources which can lead to employees walking out from sheer frustration.
Compliance Risks
Non-compliance can tank your business faster than you can say bankrupt or jail time. Payroll regulations and tax laws are constantly changing, making it challenging for businesses to stay up-to-date with the latest requirements. Manual payroll processing increases the risk of noncompliance with regulations, which can result in penalties and fines.
Lack of Security
With the risk of going to jail for non-compliance, you also face the risk for being held hostage for data. Manual payroll processing poses a security risk, as it involves handling sensitive employee data, such as social security numbers, bank account information, and salary details. This data can be lost, stolen, or misused, putting employees’ personal and financial information at risk.
