As a small business owner, you must start with manually processed payrolls using paper and calculators for low cost. Unfortunately, this method can cause problems for you and your employees. Your employees are late to be paid on time, sometimes receiving the wrong amount, and even worse, your team calculates the incorrect tax rate, putting you in a legal situation.
Enough is enough.
You have finally decided that your business needs payroll software.
Payroll Challenges A Small Business Faces
Why do small businesses need payroll software? This might be the first question that comes to your mind even after you have decided to get one. As a small business owner, you need assistance with payroll processing, but mishandling can lead to legal issues. For instance:
1. Potential Errors & Late Contributions
Processing your payroll can be a more cost-effective option than hiring someone else to handle it. After all, you know your business and employees better than anyone else.
However, even if you are familiar with your business and employees, you may still need to be fully aware of the payroll processing procedures. What if you need to catch up with current contribution rates? This could result in financial losses for your business. Therefore, staying informed and up-to-date with the latest payroll regulations is essential.
2. High Cost of Hiring
Hiring a professional to manage your payroll can be beneficial in the long term. However, payrolls are typically processed only once a month and within 10 hours.
It may be a viable option if you’re considering outsourcing your payroll. Nevertheless, can you trust an outsider to handle your company’s payroll, particularly when sensitive private information about your employees and you are involved?
3. The Dreaded Tax Season
Tax season can be stressful if your business does not have an accountant or internal staff members dedicated to payroll. Ensuring everyone has their EA forms and accurate reports are submitted is essential.
Additionally, it is best to hope that LHDN does not decide to audit your business. Starting a business is more complex than it seems.
4. Lack of Integration with Other Systems
If you are using multiple systems for HR management, payroll management, and attendance management, it’s essential to integrate them. Otherwise, the data may need to be appropriately synchronised, and you may need help processing them efficiently. This can be a hassle because attendance data is required to check absences, lateness, and overtime.
Additionally, HR processes the payroll once everything is processed, and any setback in the payroll process can cause a different problem that needs to be resolved. This can result in loss of time and money, which can be avoided by integrating the systems.
5. Data Security
Every business, regardless of size, must prioritise the security of its data. You should be concerned about more than just your business data; your employees’ personal information can also be vulnerable to hacking, theft, or unauthorised sharing with a third party. Someone may be using your data for malicious purposes without your knowledge.
As a small business owner, retrieving stolen data or taking legal action against the person who stole it can be incredibly expensive. If you decide to pursue the matter legally, you must spend money on legal fees, hire lawyers, and attend court sessions. All of this can be overwhelming and financially draining.
What Should You Look For in a Software?
Why Choose Info-Tech For Payroll Software?
Info-Tech provides a complete and efficient solution for businesses that want to simplify their payroll process. With its expertise in payroll software and dedication to customised solutions, Info-Tech can assist companies in finding the right software that matches their unique requirements. The implementation and continuous support provided by Info-Tech will ensure a seamless rollout and utilisation of the software. Using Info-Tech’s Payroll Software, businesses can streamline their payroll processes, improve efficiency, and meet their goals. Contact us via email at [email protected] or call us at +603 6050 0333.