Over the last decade, payroll software has become more and more sophisticated, making it easier than ever to optimize and automate the payroll process. In fact, in 2022, some companies will choose to outsource their payroll entirely and instead focus on the work that makes them money rather than the administrative tasks associated with payroll management and processing. Even if you’re using payroll software now, it’s important to know what the future of this industry looks like so you can plan accordingly and remain relevant in your field as we go through another technological revolution in ten years or so.
1) Automation
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If a single reason to adopt payroll software stands out, it’s automation. Technology is growing at an exponential rate, and today there are far more efficient ways of doing almost everything—from payroll to HR. Over time, old-fashioned manual systems will fall out of favor as advances in technology make it easier for businesses to automate everyday tasks and run more smoothly. In some cases, adopting payroll software might be enough to take your business from good to great. It really is that significant! When your business runs on autopilot, you can focus more energy on improving other aspects of your company like sales or customer service—or simply spend quality time with family.
2) Modernization
As technology continues to evolve and change, we are finding that most of our daily routines have been streamlined by modern-day innovations. Just think back on how your life was 10 years ago—your watch was probably still a traditional, wrist-worn device. But now you’re more likely to carry a smartwatch, which is significantly more convenient. With every new technological advancement comes new levels of convenience—and payroll is no exception. Automation makes everything from getting paid to paying employees easier than ever before, and software can even help small businesses that don’t have an HR department or dedicated IT staff keep up with industry standards and regulations. As it stands today, one out of every three small businesses has implemented some form of HR software like payroll management systems.
3) Streamlined Processes
The best way to ensure payroll data is accurate and up-to-date is to make sure it’s collected and entered only once. Paper check stubs are notoriously error-prone, but some companies continue to use them because they’re cheaper than using a program. It’s also time consuming for employees—they have to fill out paper forms each pay period, which means more of their time goes into labor rather than productivity. It also makes it hard for employees to view their pay stubs online at any time,
4) Easy Access and Storage
By using cloud-based technology, you’ll no longer have to worry about equipment breakdowns or losing important documents and reports. Instead, everything will be kept safely on a secure server accessible from anywhere with an internet connection. If you lose your phone or your computer dies, it won’t matter; you can easily access any and all data from a new device. In addition to keeping files safe and available for future reference, cloud technology makes it easy to share information with other companies and streamlines payroll communication between employees, employers, tax agencies, insurance providers etc. It also allows company owners to access data from multiple locations at once—even if they’re not physically at work—which makes payroll management easier than ever before.
5) Avoidance of Fines and Penalties
The penalties for not keeping up with payroll reporting can add up very quickly, resulting in costly fines and penalties. For companies that are just starting out or are looking to grow their operations, that extra cost can be a killer—perhaps even enough to put them out of business. In fact, many companies that don’t have proper reporting systems fail within three years of incorporation. If you have employees, it is simply a good idea to use software to keep on top of your paychecks. This ensures that you have accurate records (which will allow you to avoid any fines) and streamlines your process by keeping everything digital. Technology Makes Reporting Easier: Today’s software makes payroll reporting as easy as point-and-click.
