Advantages of Payroll Automation for Small Businesses

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It is needless to say that automation makes running your business easier. Progressive entrepreneurs understand that growing a business and scaling profits is a daunting task. You have to find ways to increase your productivity to activity ratio. 

So it is not surprising that progressive entrepreneurs are constantly looking out for ways to automate their business operations so that they can focus on the key aspects that will truly contribute to their business growth. While some business owners have found ways to automate some aspects of their business automation, what is most often ignored is payroll automation.

A study conducted by recruiter reveals that human resources managers waste about eight hours per week on manual, repetitive tasks.  That’s not all, they also discovered that these manual tasks result in poor communication.

Also, most of their productive time is spent on unproductive tasks instead of spending more time on pressing business challenges and concerns. You may be missing out on a lot of opportunities if you’ve not started using payroll automation. Here are the advantages of payroll automation:

Easy Reporting

Fully-integrated payroll software has in-built features that provide full analytics which you can access at a click. Traditional payroll management usually involves manually going through loads of paperwork and files to assemble data. This approach is time-wasting and usually results in errors. Additional information in the form of reports on overtime, attendance, and leave reports may be missed out when manually calculating payroll using traditional payroll reporting. With payroll softwares, you can easily generate reports and make payroll calculations in a few clicks.

Record Keeping

Data-driven decision making is key to business growth. As a business owner, how prepared are you in protecting yourself from data loss? One major benefit of payroll softwares for small businesses is the fact that they’re cloud-based so you do not have to worry about data loss. Additionally, payroll solutions make you compliant. Compliance issues related to tax filing are easily calculated and the process can be seamlessly automated. Hence, payroll solutions help you stay compliant and prepared for any possible audit.

Saves Cost

Payroll solutions protect small businesses from wasting their financial resources on payment duplication. Also, imagine the cost savings on not paying ghost employees and clients. Additionally, with automated payroll solutions, you do not have to waste time over long spreadsheets to calculate various types of payments. Manual payroll could even lead to overpayments of wages, salaries to even more complex functions such as commissions, bonuses, raises. However, with payroll solutions, you can effortlessly pull this information without being worried about overpayment duplication, missing wages, underpayments, and overpayments.

Payroll solutions assist you in financial planning for both the business and the employee

Employee trust may diminish as a result of delayed or missing paychecks. Automated payroll systems can permit funds to go directly into your payroll system’s account so you can handle payments in a single click. Apart from this, you can easily make calculations for long-term budgets for both employees and the business.

Payroll Solution Promote Employee Self-service

Traditional manual payroll methods do not permit employees to view their paychecks or even update their personal information. However, payroll automation systems promote self-service by allowing employees to view their paychecks easily and even update their personal information. Also, these payroll solutions enable your employees to view their benefit statements and deductions easily. Hence, payroll solutions enable payroll transparency and converging lines of evidence suggest that this boosts employee trust and loyalty.


Payroll automation is the next frontier for your business. Payroll automation saves you money and time. Additionally, payroll softwares for small businesses facilitate employee satisfaction, improves security and consistency in all branches, and reduces risks of errors.