Techblog
5 questions SMEs should consider to streamline their payroll or payslip process
The payroll process may not be the easiest aspect of owning a small business but it is no doubt one of the most critical ones. Streamlining payroll can take away the headaches of costs and paperwork at a stroke – the key is to ask 5 key questions.
Manual payroll processes belong in the museum along with the typewriter and the fax machine. Why? Simply put: no-one wants to deal with piles of paper spreadsheets and documents lying around. Nor do they want any error in tax and salary calculations.
Today, business owners have a plethora of options to choose from for their payroll software. With the cloud, they now have access to cheap, highly scalable and flexible software that makes the old way of doing things obsolete. For small businesses in particular, cloud-based payroll systems offer simplicity and utility for the lowest cost on a pay-as-you-go basis.
Keeping this in mind, what questions should you ask when you decide to streamline your payroll system?
1. Is it automated to save time?
Automating the payroll process can allow small businesses to save time and money, while also getting rid of mistakes that creep in through human error. Today’s software can complete calculations in a fraction of the time previously taken. And by holding payroll information on one database, you can easily track payroll history without any hardcopy documents. Look for software that lets you generate salary outputs, pay slips, statutory compliance reports with a few keystrokes.
2. Can you customise and document easily?
How have your existing payroll systems evolved over time? Are they hard to understand and learn? If they are, this can leave you dependent on staff with historical and tacit knowledge about how to run payroll. If they leave, it could create problems and leave new staff or trainees struggling to understand how the system works.
Look into payroll software that enables you to run reports and customise your system and the reports it generates, giving you a clearer view and better control of your staffing needs and costs. The most flexible payroll software will also provide templates automatically customised for different submissions, such as CPF, IRAS and GIRO submissions.
3. Will it integrate with other systems and applications?
A good way to ensure your payroll process is as streamlined as possible is to integrate it with other key business functions such as accounting.
Enabling payroll and accounts teams to work closely together helps ensure they report costs accurately. Ask whether the system you are thinking of adopting will enable you to link from payroll directly to your chosen accounts package. This will ensure your finance team’s payroll figures are accurate.
4. Can it keep up with other aspects like regulatory guidelines?
Can your system do more than just manage how employees are being paid? Can it track attendance, leave days and staff expenses with automatic alerts? Can it offer talent management tools, such as employee profiling and dynamic search, to help manage your staffing needs easily?
The best software will also keep you abreast of regulatory changes, automatically updating your system without you having to do anything, giving you the peace of mind knowing that your processes will always be compliant.
5. Is it ‘at-a-glance’ simple?
For your accounting staff to be able to handle payroll matters easily and error-free, ensure that the software you choose has a clear and streamlined user interface and experience.
A simple interface also means you and your team won’t need any programming ability to run it. Even better if there is a step-by-step wizard to set-up payroll processes within minutes for those with no technical knowledge.
A good payroll software system offers clear advantages, not just in cost but in presenting critical payroll information with clarity along with the peace of mind that comes with automatic compliance. Just do your homework first to make sure that the payroll system you go with
- automates generation of salary reports and tracking of payroll history.
- customises reports depending on staff needs.
- integrates with other systems and applications.
- automatically tracks regulatory guidelines.
- has streamlined UX for ease of use.
From 1 April 2016, as stipulated under the Employment Act, Singapore SMEs are required to issue itemised payslips and maintain employee KETs and records. To get started quickly and meet the requirements, myBusiness has introduced Essentials Payslip that allows SMEs to easily create and manage payslips and employee records. SIgn up for a FREE 5-user license pack.