How To Compute The Cost of Manual PayrollJudah Hirsch
It was another busy day in accounting, but it was about to get busier. Kris works for a small firm of 70 employees, and today she is working on the end-of-month payroll. new balance mrl996 Fjällräven Kånken adidas messi In the middle of her work, she received a few last-minute discrepancy claims from the last payout. Upon checking, it seems there were some errors in last month’s data entry. Because of their size, automating the payroll process hasn’t been a top priority. new balance That said, Kris still wrestles with endless Excel sheets everyday. Every error she makes adds up to her workload, which can spin out of control if she’s not careful.
One day, Kris had an idea. She will be making a case for payroll automation, but she needs some data. She needs to know how much time she takes — and wastes — doing all the payroll work manually. Kris will also show how much the company can save with automated payroll.
Manual Payroll Creates Costly Mistakes
When working on your employees’ salaries, there should be no margin for error. They must be paid to the decimal point. Adidas Zx pas cher Any more and it’s a revenue loss. ugg boot outlet Any less and your get unhappy employees.
Given this, it’s surprising to know that a lot of companies still stick to manual payroll. This means anywhere from logging time by hand to manually entering data in a spreadsheet. ugg boots bailey Spreadsheets have a whopping 88% error rate according to one study.
And yet, many firms still swear by manual payroll processing. Back in 2012, research found that only 15% claimed to have automated their HR and payroll services.
There are clear benefits to payroll automation. But first, you need to show management how automation will benefit the company. Fjallraven Rucksack ugg australia pas cher Often, there are two things your company heads need to understand before adopting automation:
- The financial benefits of using automation. How much money can the company save with it?
- A solution that will deliver on the promise of automation.
5 Steps For Computing The Costs of Manual Payroll
Learning how much time you can save with an automatic payroll system means tracking down the time spent in the first place. Remember, payroll is never just typing in the data and waiting for the result. kanken rucksack There are little problems that you need to resolve here and there. ugg australia Here is how you can make your own case for automation, just like Kris:
- List down all the payroll-related tasks you are doing. Usually, this will include the following tasks:
- Gathering time logs
- Entering data into a spreadsheet
- Deducting taxes and government contributions
- Handling employee benefits (social security, health insurance, etc.)
- Computing for incentives
- Filing tax details
- Releasing the salary to the employees
- Resolving the issues of the previous payroll (if applicable)
- Measure the time you take to finish each task. nike air max flyknit You may do this for each employee.
- Multiply it by the total number of employees in the company. This will show you the number of hours you work on payroll for each cutoff.
- Multiply the number of hours by the hourly rate of the company’s accountant. nike air max 2014 Fjallraven Kanken Big If you have more than one accountant, divide the product by that number. This will get you the price your firm pays for a single cutoff’s payroll.
- Look back at the tasks you listed earlier. Which tasks can an automated payroll system help reduce or even remove completely? For example, it can remove manual time logging completely by entering time ins and outs via an app. By computing how many hours you save, you can also arrive at how much money the business saves.
A Solution To Manual Payroll
Then of course, there’s the matter of finding a solution that will help you reduce as much manual labor as possible, for maximum savings. Here’s where Salarium can help. Salarium takes care of almost everything related to payroll. With it, you can feed the employee’s log details right into the payroll app. This means fewer disputes and less time needed to resolve discrepancies. One can just hit a button to take care of the entire payroll process. Government contributions are also filled in automatically. This ensures that the BIR, SSS, and Pag-ibig contributions are up to date all the time. Salary disbursement is also a breeze. Salarium has its own secure pay wallet system that allows real time crediting of funds to staff. No more waiting, and no more lining up in banks.
Reduce Your Workload Via Payroll Automation
Kris made her case with management. She shared how much the company can save through payroll automation. nike air max pas cher While doing her computations, Kris also came across Salarium. Kånken Rucksäcke She pitched that as a solution.
The company heads agreed with her and gave the green light to use Salarium. Now she can take out the entire payroll process from her workload. Instead, she can use her time for more productive projects, like optimizing the business’ cash flow. Give your business the upgrade it deserves, and see how much further it can grow. Salarium takes care of all the tricky parts so you don’t have to.