Importance of payroll software in MSME sector

One of the important tasks for business management is to handle human resources processes. And, handling any issue about the Human Resources Function will be handled. Payroll departments are the backbone of any business and efficiently managing these processes is important as a business as other business operations. A manual payroll system is a busy job; a company with some people can maintain the manual payroll process, however, this is a time-consuming task and it is frustrating to run and run an HR or payroll shop with a mismatched puzzle of spreadsheets, and it gets more complicated as your company grows.

Payroll administration is a burden for small companies as well as a very important activity that is repeated every month, involving complications related to calculations, deductions and statutory rules. While many companies may go with processing the employee payroll side manually, this is not achievable amidst growing business. Simple and cost-effective business payroll management software in India is necessary in order to simplify the work and to handle payroll processes in order to capitalize on prolonged business efficiency.

Small businesses are often too small to justify the cost of employing their own HR department. In these cases, the responsibility of the payroll administration can be on anybody from the managing director to the administrative assistant. Although they can go with handling payroll manually, but this is not the right way and the initial payroll solution in the business life cycle helps save both time and money.

A payroll solution software or program can improve overall operating efficiency for small and medium enterprises. In calculating salaries in keeping track of the legal calculation of PF and ESI, reimbursement according to CTC norms, employee master details, and correspondence in respect of letters, emails and documents, keeping salary, taking salaries and availing a loan.

Another reason to consider this type of payroll software is that it makes it very easy to meet any tax obligations. Calculation of income tax is another routine and painful activity that must be in line with government rules and norms. A good software package can help to automate this activity for more efficiency and accuracy.

For a small and medium enterprise, the automation of processes is important in terms of investment cost and profit in the software. This is the reason that the solution is easy to use, strong with tools to suit the needs of scalable and robust software, suited to specific business conditions. Essentially, it should help to organize the entire process, from which payroll is a short time consuming and error-free processing task.

When we take it in Indian scenario with software vendors for payroll software, we can find two types of vendors. Firstly there are very small companies providing payroll software and others have installed large software players.

While deciding on buying payroll software, we have to keep in mind:

1. Compliance with Tax Rules and Regulation
2. After the sale support
3. Software Upgrade Support
4. Organizations need customization

In India, we mainly see small sellers in this scenario, which primarily compete on pricing gains, but there is a lack of good customer support and software upgrades.

If you are looking for payroll software, check thoroughly what the software solution has to offer you. Lastly, make sure that you take a decision based on the software’s features and not only its brand.