Payroll software provides what you need to manage your company payroll. And even if you go with paid software, when you take everything into consideration, you can save no small amount of money in comparison to outsourcing. Payroll software can help you save money in a number of key ways, and this guide offers a detailed explanation of all of them and considers the cost-effectiveness of using software for different types of businesses.
Saving time and money
We all know that time is money, and this is especially true for business. When it comes to some of the best payroll software solutions available, once you understand how to use the software and have become experienced in using it, you will be surprised at just how quick it is to manage both common and uncommon payroll occurrences.
There are many examples that demonstrate how you can save time by using software. Automatic features help to cut out the repetition, there is no need to make manual calculations, and many of the most important functions are completed automated. This means less time performing payroll management and more time spent running other aspects of the business.
Avoiding outsourcing service fees
Companies with a large numbers of employees benefit from the economy of scale with outsourced services, and this is why the amount of potential savings decreases for larger companies who choose to operate payroll in-house. Problems are much easier to solve with smaller payroll systems than larger payroll systems, and generally there are fewer technical demands to running an in-house payroll system. Having said this, with careful planning and implementation, larger businesses can still operate a highly cost-effective internal system.
Smaller companies have the chance to save more money by keeping payroll in-house, especially if the company searches wisely and chooses a free payroll software solution. With some of the most user-friendly payroll solutions there is no need to hire specialist staff or invest money in training, so more money can be saved here.
How cost-effective is payroll software for your business?
You can obviously save money by going with a free payroll solution, though larger businesses with over 10 employees will struggle to find a solution without paying for software licenses. Annual licenses begin at around £50 for basic software packages and £80 for more helpful and easy to use packages, and though you might think this is expensive, the fact that the licence lasts for the whole year and usually allows you to cover an unlimited number of employees actually makes them very cost effective.
Overall, if you shop carefully and ensure that you or your payroll administrator understand the system, money can be saved by saving time and avoiding the need to outsource.