The payroll process is not as easy as releasing payments to your employees. You have to collect their time cards, note deductions and reimbursements, and handle their tax obligations. Fortunately for business owners, payroll systems exist to make the process simpler.
There are several payroll software options you can choose from, and each have different features that can help with the payroll process. But which ones are worth investing in? We'll list some of the best features of a payroll system businesses should utilize.
One of the essential features of payroll software is a time-tracking feature. Most businesses pay their employees based on the hours they work. So keeping accurate track of the time your people work will allow you to pay them properly.
Furthermore, automated time tracking eliminates the error from the manual process. It also gives the payroll team the confidence that the recorded time is valid since no one outside the administration can alter the time in the system.
Every minute spent running a business is precious, so don't waste it on a payroll system that's hard to set up and too technical to understand. Before investing in payroll software, always look for the setup options.
Here are some things you should check.
It would also help to see customer reviews to assess if the software suits your needs. Furthermore, take advantage of payroll systems with free trial features. This way, you can closely examine the software, from installation to its features.
One of the reasons why you should get payroll management software is to make the tax filing process more convenient. The HR and accounting departments know that handling taxes in payroll is one of the most tedious tasks, and this payroll feature will streamline your payroll processes further.
In general, you want a payroll system that can calculate, file, collect, and deposit payroll taxes on your business's behalf. Here are other payroll system features to look for regarding taxes.
If your business includes reimbursable employee expenses, then this payroll feature is a must-have. These payroll solutions can automate expense reports and payment processes. This will save business owners time and ensure that reimbursements are paid on a schedule.
The expense management feature also provides document management so you can store all receipts and proofs of reimbursement to ensure you release the correct payment to your employees. You can access them easily when you need to check them.
One of the most crucial features of payroll is direct deposit. Gone are the days when businesses paid through cash and cheques. Direct deposit is quicker and easier to process, which takes a load of work from the payroll team.
Here are some configurations your direct deposit feature should have.
Make sure also to check the additional fees that come with direct deposits. Fees may vary depending on the payroll provider. The lower the fees, the better it is for your business.
The reporting feature is a must-have payroll software feature for automated payroll software options. The last thing you want to do when you need information is to look through a mountain of paper and assemble them to create a report. It's time-consuming and impractical. Find a software that will help you generate different reports.
Here are some necessary reports your payroll software should provide.
You also can check for breakdowns. For example, can you make reports for individual employees? Can you make summary reports? The more reports the software can generate, the easier it will be for business owners like you.
Two benefits come with self-service functions. First, it allows your employees access to change necessary payroll data like bank account numbers and addresses. Second, it allows your employees to see their available leave credits and access reports such as W2 and pay slips.
Although this feature allows employees access, they cannot change anything, such as time and pay rate.
Payroll processing consists of several tasks. It would be helpful to integrate other software into your payroll system. Integration will streamline the whole payroll process and make it seamless and accurate.
Here are some integrations you should consider.
Make sure to explore different payroll providers. Others will ask for fees to integrate other software with theirs. Some software options can also do all the accounting tasks with a more expensive subscription plan, but they are worth considering.
Even with the surge of different business software, many business owners are still reluctant to get a subscription. It may look like an unnecessary expense for a small business, but investing in software greatly benefits your business operations.
What are the advantages of a payroll software?
If the payroll process is too much for you, let professionals handle it. Unloop offers ecommerce and small business payroll services for stress-free payroll processing. Here's what we can do for your business.
Managing payroll is part of running a business. As your business grows, the more employees you need, and the more you need to pay. At one point or another, getting software or a professional service is a viable choice. We hope these outstanding features help you choose a suitable payroll software for your business’s needs.
If you need professional help, Unloop offers other accounting services such as bookkeeping, accounts payable, forecasting, and taxes. Talk to our experts and book a discovery call with us today.
Unloop is the first and only accounting firm exclusively servicing ecommerce and inventory businesses in the US and Canada. With the power of people and technology, our team dives deep into COGS and inventory accounting. You are paired with a dedicated bookkeeping team that prepares accurate financial statements, financial forecasts, and can also pay bills or run payroll for you. Come tax time, everything is organized and ready to go, so you don't need to worry. Book a call with an ecommerce accountant today to learn more.