Small and medium-sized businesses (SMBs) constantly struggle with many aspects of their financial management. But above all, processing a smooth and timely payroll tops the list of things that prohibit the CFO from sleeping peacefully at night.
Month after month, SMBs work hard to make sure they pay their employees, contractors and suppliers accurately and on time. But staying compliant with ever-evolving labor laws and tax regulations is difficult. Some research suggests that every year, up to a third of SMBs are fined for payroll mistakes.
Avoiding such mistakes is a matter of increased visibility into your payroll management. Quality cloud ERP systems are able to handle government reporting and processing while helping you pay everyone on time.
Here are six additional reasons SMBs should use cloud ERP to help monitor their payroll costs and streamline the process.
- It is affordable: Certain cloud ERPofferings don’t require as much upfront capital outlay, which means that they’re much more affordable than an on-premises platform in the short term. For the long-term cost benefits, these subscription-based programs also don’t require you to hire additional IT staff, purchase server space or even pay for upgrades with some offerings. A cloud offering allows you to invest in a more sophisticated solution that will properly help you manage payroll processes without breaking the bank.
- It is confidential and secure: When SMBs think about payroll and who is processing it, many place high importance on confidentiality. The advantage of cloud solutions is that they are managed by professionals who stake their entire reputations on top-notch security.
- It can be accessed anywhere at any time: Having your data stored in the cloud means your employees can access their accounts from home or anywhere in the world. For some business owners who don’t want anyone else handling payroll, this means they can go on vacation or home for the holidays and still have access to the system. There’s no need to put the company on hold simply because the boss is away from his desk.
- The reporting is much better: Getting your payroll taxes in on time means avoiding late payments. This is why reporting is such a big deal. Cloud ERP systems are able to generate reports with much less effort than QuickBooks. Many systems also include time-tracking systems so that your self-service employees can input their own hours or import data from the system automatically. Anything you can do to streamline the payroll process is a step in the right direction for increased visibility.
- Tax codes are automatically updated: Who wants to be responsible for keeping up with the hundreds of constantly updating tax laws? With cloud ERP, the system can do this updating on its own. There’s no need to manually figure out tax changes and risk inaccuracies, late payments or other fines.
- Setup is easy: When it comes to payroll processes, cloud ERP systems allow companies to automate tasks that they repeatedly perform. Your company can set up the pay rate and, if for some reason, a person is billable for multiple jobs, you can post to a particular job and track it. For a small company, having that one-time setup and being able to replicate payroll repeatedly is a big deal because it saves time and effort. Similarly, overtime, double-time and shift-work pay codes can be set up at the beginning and then replicated.
At the end of the day, nothing is more infuriating to an employee than to have their payroll messed up. It’s one of the worst things you can do to your employees. Improving visibility into payroll requires moving from a system of patchwork spreadsheets over to a cloud ERP solution. Do yourself and your employees a favor — stop going back and forth from spreadsheet to spreadsheet in order to piece together your payroll.