Payroll Process: How Using Outdated Payroll Hurts You

Running payroll is an essential part of any business, but using outdated processes can be costly and time-consuming. In this blog post, we discuss how using outdated payroll processes can hurt your business and your team.

By taking a proactive approach to managing your payroll process, you can save time and money while avoiding unnecessary headaches. So read on to learn how modernizing your payroll system could be the key to success for your business!

Affects Employee Morale

If you use an outdated payroll system, your HR team may make mistakes when calculating payroll. Outdated systems are less reliable and do not run as fast. As a result, your payroll manager may take longer to process payroll. Payroll errors and delays can lead to distrust among employees. If you fail to compensate your employees accurately and on time, they may begin to lose trust and potentially look for work elsewhere.

Compliance Risks

Labor laws and payroll regulations change almost every year. With an outdated payroll system, keeping up with current tax rules and regulations can seem like an uphill struggle. Your payroll administrator may make costly mistakes when calculating salary and statutory contributions and deductions. Non-compliance with payroll regulations can lead to significant penalties.

A payroll processing company near you, such as Virtual Jeannie, can help ensure payroll compliance. We will upgrade your payroll system and streamline your payroll process to reduce inefficiencies that hurt your business.

Hinders Business Growth

As your business grows, so should your payroll process. The payroll system you were using 5-10 years back, when you started your business, may no longer meet your needs. An outdated payroll system uses more resources and increases the risk of mistakes that can cost your business.

Hampers Productivity and is Less Efficient

With an outdated paper-based payroll system, your teams must transfer data several times –   first from a timesheet to a spreadsheet and then to your payroll records for recordkeeping. At each step, figures should be carefully checked. This is a highly tedious and time-consuming process and can lead to errors. Also, your HR, payroll, and finance teams may spend several hours filing paper documents.

Paper checks can cause payroll headaches. If you pay your employees through paper checks, you will need space to store them. If checks are printed incorrectly or destroyed in a fire, your payroll team will be forced to print new checks.

Remember, technology isn’t flawless. Upgrading to an advanced payroll system won’t do you any good if you insist on using an outdated payroll process. Therefore, we always advise clients to switch to a more advanced and efficient payroll process.

Virtual Jeannie Bookkeeping Services is a trusted payroll processing company near you. Our payroll specialists follow payroll best practices. Our expertise enables us to develop customized payroll solutions for our clients. To learn more, call 707-664-1425.