An automated accounting and payroll system enables organizations to process its payroll through a computerized system. There are several more benefits to enjoy from this software. Let us learn more.
Accelerated Time Computation It is exhausting to calculate manually the working hours of employees, especially if they work in shifts, do overtime, or get hourly remuneration. A manual payroll system needs employer to collect time clock data and calculate it by hand. Often, manual computations are prone to mistakes. However, an automated payroll system enables employers to import the time clock data directly to the automated time-keeping application. The employee uses a badge or swipe card or biometrics (fingerprint) to clock in and out. This data is automatically transported into the accounting and payroll software, which then accurately computes the results. However, the payroll administrator must ensure that employee time records are appropriately imported, and check for edits in time records before processing the salary.
Salary Calculation The automated payroll system enables accounting professionals accurately calculate the gross-to-net earnings as per the data fed by the payroll executive. Thus, the accuracy of the data is ascertained. For instance, if the payroll executive forgets to make severance pay entry into the system for a terminated employee, the payroll system will not recognize this and will not pay. The computerized accounting and payroll system executes all types of payments, such as, salaries, hourly, commissions, overtimes, bonuses, raises, deductions, taxes, wage deductions, and many more.
Paycheck Generation This system abolishes manual paycheck writing and automatically generates paychecks. It also makes direct deposits into the employee’s bank account. It enables employers to customize the pay slip template for their employees.
Deductions Deductions like employee provident fund, gratuity, tax and mediclaim are an important part of payroll processing. However, calculating deductions from employees’ paychecks is a time-consuming task. The payroll executive must be up-to-date with the latest tax laws to compute the deductions accurately. Often, manual calculations are prone to mistakes that lead to heavy losses for both the company and the employees. An automated payroll system calculates the withholding taxes based on current tax-rate inputs and it reduces the possibility of payroll tax errors. It saves organizations from paying tax penalties, and employees are happy too upon receiving accurate salary every month.
Organized Recording Organizations are legally required to maintain employment tax records and payroll records for at least three to four years. This software generates and stores these records safely in an organized way.
Notifications This software can keep its users updated about the latest changes to state or central taxes. The timely notifications also remind users of important tasks, such as, tax submissions or paycheck generations to avoid penalties.
Cost Effectiveness The accounting and payroll software brings flexibility into the calculation and management of employee records. Anyone with basic technology knowledge can easily manage the payroll requirements with this system. The need for less labor further reduces the expenditure of an organization.
Productivity The automated payroll system saves labor costs and resources for managing payroll. Organizations may thus use the labor and resources for other core activities to increase their productivity and the overall profit margin. Hence, it allows small-to-medium sized businesses to grow rapidly.
Security This software saves organizations from hiring third-party vendors or agencies for payroll calculation. It prevents them from sending sensitive personal and financial information of the employees to an external vendor. If an organization deploys an automated payroll software that come with highest standards of IT security, it can keep the sensitive employee data secure.