Reasons How a Good Payroll Software Can Benefit Your Business in The Long Run
Hiring the right team is a key pillar for your business and so is having a good payroll software. Your organization whether large or small requires you to handle its administrative and HR tasks in an appropriate manner. This is where a good payroll management software comes into picture. It is a vital element to the way you conduct your business’ administrative tasks. Let us understand what payroll software is.

What is a payroll management system?
A payroll system is a tool - predominantly a software program which enables your business to handle all your employee’s financial records in a hassle-free, automated fashion. This includes employee’s salaries, bonuses, deductions, net pay, and generation of pay-slips for the monthly period.
By having a payroll process in place, you are essentially automating a couple of these micro administrative tasks in order to get the mental bandwidth to concentrate on the macro. The best part is you will not have to worry about handling things like calculating tax deductions, generating pay-slips and so on manually. All of this will be automated by the use of payroll management system.
As you have already realised, your business activities are primarily divided into two broad categories: the macro and micro. The macro here refers to the broader or bigger picture stuff. If you are looking for aiding your long-term vision for the organization these activities can prove beneficial. Your business development strategy, sales, revenue, cash flow, etc., represent this category. The micro category is your everyday administrative chores that fuel the day-to-day operations of your business. Although these tasks seem mundane and repetitive, they're just as important to keep your business running like a well-oiled machine.
Key benefits of a payroll management system
There are several benefits of implementing a payroll management system service like this for your business or organization. Some key benefits are briefly highlighted for you below:
- Employee morale
- By making sure your employees are paid in a systematic and timely manner, in this way you are reinforcing their faith in your business’ financial integrity. This will also result in a boost of employee morale and motivate your employees to perform better.
- Statutory compliance
There is a legal framework which every business has to adhere too. As an employer, you are required to take care of various payroll and payment records of your employees. Every organization that hires employees and pays salaries must abide with the labor laws. By having a payroll software in place, you are automatically complying with the regulations and labour laws followed by the government of India.
- Manage the information of your employees efficiently
You can accurately store and manage all the information regarding your employees in one place. There will no requirement of any additional tools to maintain this data.
- E payroll
Generate reports related to employee attendance, salary structure, etc. - the best payroll management software will facilitate this process seamlessly. This has proved to be valuable when you have to retrieve information for any queries associated with any employee related matters.
- Start-up friendly
The benefit of a payroll management system is that even if you do not have enough budget to allocate to every aspect of your business. Most of the payroll management software are inexpensive as compared to the manpower you will have to use to do the same amount of work, making it affordable.
- Time-saving
Since everything in a payroll management software is automated, you will be saving a lot of time. You don’t have to be compelled to manually enter the data for every cycle. You just have to set it up once, and the software handles the rest. The only thing you will probably do is new employee registration for each new hire, which again can be easily managed.
- Plan for the future
Most of the payroll management software’s provide a forecast feature. You can use this to plan the cost of staff to your organization and other such relevant expenses. This will help you get an honest picture of how much your business should be making so as to accommodate all the expenses and still operate profitably.
Key features for choosing a Payroll Management Service
There are a selected few features that are an absolute must; regardless of the size of your organization. When you are deciding between multiple payroll products, please make sure that all (or most) of the features mentioned below are included.
- Easy setup and on-boarding
The payroll software you choose should be easy to work with and something that can be set up without a lot of technical difficulties. Employee on-boarding should be smooth and seamless. If you are new at this, it will not be difficult for you as you will be able to figure most things out intuitively or with the help of a comprehensive checklist. Most of these payroll management software’s provide one-click solutions.
- Automatic payslips or payrolls
The software should be able to automatically process and compute payrolls accurately for each period of payment. The payroll software is even more helpful when it can generate customised payslips and enable direct deposits into your employee’s bank accounts.
- Run on the cloud
The service should be ready to run on the cloud and provides you the flexibility to access it from anywhere and from your shortlisted devices. This way, you will still be able to administer timely pay-outs even if you are busy with other obligations.
- Personalised structure and salary components
You should make sure that you are able to input different salary components such as earnings, allowances, deductions, and reimbursements for multiple employees with varying pay grades. You should be capable of clearly establish your company’s salary structure.
- Inbuilt compliance
It should enable auto calculations of deductions like Provident Fund, Professional Tax, ESI, tax on income, etc. Many of the tax laws are dynamic and may change from time to time. The service you decide on should adapt accordingly and make precise calculations.
- Tax filing
Both your business and your employees should be can effortlessly file for tax declarations directly from your payroll portal.
- Reporting tools
It should assist you in generating generate multiple reports supported on your requirements. An example would be a reconciliation report or a summary of professional tax report and other such likes.
- Employee self-service portal
The perfect product should have an employee self-service portal which can be accessed by your employees. This is important because it will allow them to keep track of their salary payments, tax deductions, and other important information in one place. This will also help them update their address and get in touch with information if any changes occur.
- Biometric attendance
This feature available in some attendance management software apps help with attendance of employees, making it an easy process where everything is recorded at one place.