Many organizations still rely on manual time tracking and accounting systems to manage the payroll processes, using separate, non-integrated systems for time tracking and payroll. While these organizations may be saving "money" by not outsourcing or upgrading to a more modern, cloud-based payroll solution, they are wasting valuable time that they could otherwise spend making more money for their business.
What Does a Good, Modern, Cloud-Based Payroll Solution Do for Your Business?
The problem with relying on manual payroll processes or disparate systems is that it creates an environment that is at greater risk for inaccuracy. It can and will lead to human error, lost productivity, and damage to employee engagement — all of which can have tangible costs to a business.
The right payroll software can prevent payroll fraud, reduce errors and costs caused by payroll leaks, streamline inefficient tasks and manual processes, and automate HR compliance strategies with labor and pay laws, union regulations, and company pay rules.
Simply reducing the average payroll error rate from 1.2% to 0.7%, could reduce your payroll by tens of thousands of dollars for every 100 full-time employees (FTEs).
Here’s an example of this calculation that really highlights the need for a company to have the right payroll system in place.
$907.82 average weekly earnings ˟ 50 weeks ˟ 100 FTE ˟ 0.5% payroll error rate difference = $22,695
This is a real justifiable reason to ensure you’re working on the right payroll solution for your business. Fixing errors like this can pay for the cost of the solution, and quickly.
How Do Employers Know if They Have the Right Payroll Solution?
Here are a few key features and characteristics your payroll software should have:
- Complete time, and payroll automation, eliminating timekeeping errors, with no manual transfer of data or manual calculations.
- Automatic flagging of exceptions that violate your organization’s policies and alert managers, so they can act on actions such as missed punches, early or late arrivals, and extended or skipped breaks — all of which can result in payroll errors
- Automation of data delivery for correctly calculated time worked or time off hours to your payroll system, so each employee check is cut right the first time
- Flexible payroll reports on-demand — payroll register, labor distribution, general ledger, and more — all customizable on the fly before finalizing and submitting payroll to help ensure accurate results
- Automatic payroll alerts throughout the payroll process to flag issues and reduces errors
The right payroll system will have automation as a key tenant, empower your managers while providing visibility into employee data, and proactively provide you with the tools to identify and solve payroll errors before payroll is ever finalized. If you don't have a solution like this in place, it's time you found one.
Inflection HR’s cloud-based payroll and timekeeping solution streamline payroll management by simplifying and automating the entire process, greatly reducing payroll processing time, and providing instant access to reports and data.
If you are an Arizona-based employer, or any employer looking for a new, modern, cloud-based payroll solution, then look no further. To see how we are already helping countless businesses utilize the right payroll solution, contact us today.