The Future of Finance - and Why Now is the Time to Take Your Payroll Digital
Payroll can be a challenge for many organisations. It’s a big job, and it’s an important one, too. If there are mistakes in tax data, at the very least, employees get paid incorrectly, but on top of that, you can receive fines and penalties from HMRC.
And correcting these mistakes further zaps time that could be spent adding value elsewhere in the business.
To compete in an age where everything is increasingly digital, you must adapt your practices to remain competitive, and that means taking your payroll digital.
Payroll management has seen a significant shakeup over the last few years, with many companies choosing to embrace digital tools to help them streamline (and shorten) their payroll processes.
And although digital adoption comes with new challenges, there are also plenty of opportunities for payroll to add even further value to business strategy going forward.
The future of payroll
Research suggests one in 10 companies are still relying on spreadsheets to work out salary calculations, and 11% rely on timesheets to calculate payroll.
If you’re still dishing out paper payslips and relying on spreadsheets to do your calculations, then your payroll process is not only left open to human error, but the process as a whole is fragmented.
So as the new tax year looms, is now a good time to invest? (Short answer - yes! Who likes changes mid-tax year?)
Payroll software encourages employees to take full control of their personal data while giving them better visibility and a clearer understanding of how they pay taxes. And your payroll itself will be more accurate by reducing human error, getting your people paid on time every time, and by ensuring all departments can work collaboratively, accessing the same data from one centralised hub.
Payroll automation has released those working in payroll from the tedium of manual data entry and helps streamline processes, including RTI and pension submissions.
Cloud-based payroll systems allow payroll and finance teams remote access and real-time updates — which means payroll has become more fluid and practical, slotting into the modern working day.
This advancement in payroll technology means organisations can improve their bottom line while better serving their employees. Investing in payroll software is a great way to future-proof your organisation.
Overcoming challenges with digital payroll
If you can identify with some of the challenges below, then digital payroll can help you overcome them, and better serve your organisation and its employees.
Bid goodbye to wasted time and resources
Not only is manual data entry time-consuming, but it’s also leaving you open to errors. When using legacy systems, it’s easy to harbour duplicate or old data as systems don’t talk to each other.
With digital software, you can eliminate the need to have too many tools in your arsenal. You instead have one centralised place for everyone to access payroll, HR and accounting data (you can integrate your HR and accounting systems easily with PayFit).
Payroll software that talks to your other platforms means you don’t have to update multiple systems and spreadsheets. Instead, you change details on one, and the others are automatically updated. This ultimately saves you time and frees up important resources.
Automatically calculate deductions correctly
Incorrect pay can induce stress and anxiety, which inevitably makes employees frustrated and can mean they lose trust in your organisation. So much so, that 21% of British workers say they have changed jobs after being paid late or incorrectly.
With digital payroll software, you can automate many of the tasks involved in payroll management. Tasks including tax calculations and deductions, overtime, annual leave, pension submissions, and generating and distributing payslips, as well.
This not only saves you time but also improves the overall accuracy and reliability of the payroll process. Ensuring employees are paid on time and correctly can improve employee satisfaction and retention.
Say hello to better data security
It’s no secret that traditional payroll methods are vulnerable to fraud and hacking, leaving sensitive employee information at risk. Payroll software gives you that added security you need for peace of mind.
Digital payroll software uses encryption and other security measures to ensure your data is well protected against threats. This level of security can reduce the risk of financial loss due to fraudulent activity and help you keep shareholders on side.
P.S. At PayFit, we take security measures very seriously. We’re ISO certified and ensure your documents are protected against any unauthorised alterations. Learn more about our security.
Embrace greater flexibility and accessibility
Digital payroll practices allow for greater flexibility and accessibility. Employees can access their pay information, view their payslips online, access a breakdown of tax payments and view annual leave allocation.
By improving the employee experience, you’re empowering them to keep track of their pay and understand what taxes they contribute, all from inside their very own employee portal. This approach improves employee satisfaction and can help reduce the number of questions or concerns that payroll managers have to field on a daily basis.
Easily track and report
Payroll software provides you with a better way to consistently track and report on payroll data. The software enables you to keep track of employee hours, taxes, benefits and other relevant information, which helps you to make informed decisions and improve your overall payroll process.
This data can also be used for compliance and reporting purposes, providing you with the information that you need to comply with payroll regulations.
Your employees expect digital payroll
Millennials now outnumber baby boomers in the workplace. Why is this relevant? Well, they’re the first generation to grow up with technological advancement at their fingertips. This means they’re digital natives, they expect to work remotely, they expect to access payslips digitally, and expect technology to be present at every corner of the workplace.
If you don’t deliver on the expectation of the workforce, you’ll lack the draw to attract top-tier talent and retain current staff members.
Remember, the generation after millennials, Gen Z, have solely grown up with technology, so they’ll expect even more digital enhancements to their workplace environment. According to Dell Technologies, 91% of Gen Z say technology would influence job choice among similar employment offers.
That’s why it’s important to always stay aware of staff expectations in the workplace.
If you oversee payroll and are looking to stay competitive and efficient in today's digital age, now is the perfect time to embrace digital payroll practices. With the right payroll software in place, you can streamline your payroll process, improve employee satisfaction, and ensure compliance with regulations, making it a winning solution for everyone involved.
Learn how PayFit can seamlessly slot into your organisation and boost efficiency and productivity. Book a demo.