Pros and Cons of Small Business Payroll Softwares

Technology makes our lives easier, so it would make sense that payroll software can also make things easier for business. However, there are always disadvantages to anything. Before you switch, here are some pros and cons you need to consider before purchasing payroll software.

Pros of Payroll Software

  • Save Time: Saving time is important for any company. When it comes to payroll software, calculations are done automatically. This means you’ll spend much less time adding numbers and more time working toward important business functions.
  • Fewer Errors: Without payroll software, many companies are forced to do payroll by hand. This means there can be a high amount of human error despite multiple checks. While payroll software isn’t error free, the chance of errors is drastically decreased.
  • Allows for Growth: When human resources choose to do payroll by hand, there are only so many employees a business can handle. Switching to payroll software allows for growth. Additionally, it’s much easier to keep track of employees using payroll software due to the many tools provided by most programs.
  • Control: If you decide to get a payroll program, you’ll find that you have much more control over running payroll and the services provided by human resources. Many programs create graphs and display information for business owners or human resource departments to quickly view, assess, and track expenses related to payroll.
  • Other Benefits: Of course payroll software comes with tools that make payroll easier, but they also come with much more. The programs also come with other forms and applications that help businesses run smoothly. These tools can include employee management, training, benefits, and more.

Cons of Payroll Software

  • Learning Curve: When it comes to learning new software, it can be very complicated for some people. It can create a learning curve that can be very time-consuming and eat into time that should be spent working on essential business functions. Most programs come with a training program or booklets, but it can still take hours of studying to use the software effectively.
  • Expensive: Depending on how many features you want with your payroll software and the number of employees your business has, you may find payroll software to be rather expensive. For example, if you have 20 employees, Patriot Software is as much as $47.31 per month. That can add up very quickly and accounts for over $500 by the end of the year.
  • Maintenance: No program or software is 100% maintenance free. Because of this, your payroll software may require occasional maintenance or upgrades to ensure the security of your business is top-notch. This requires companies to take the time to perform these upgrades or fixes to glitches. Without doing so, employers risk information leaks.
  • Information Leak: If you use your computer for payroll as well as doing other work, it’s possible that malware or other malicious programs can use the information on your computer to get access to your employees’ information. It’s important to ensure your payroll software has the best security features to prevent this from happening.

Photo: Thinkstock/vaeenma

Posted on May 18, 2023