Payroll can be a pain for budding Micro, Small, and Medium Enterprises (MSMEs) who are looking to grow their profits, scale their operations, and take their business to the next level. However, while having a functional payroll management system is critical to success, getting there is easier said than done. MSMEs face various hurdles in doing so, including limited human resources, compliance with the maze of bureaucratic regulations, complicated benefit computations, and diverse payroll schedules, among others. These, not to mention the birthing pains of transitioning to a payroll management system. As such, some MSMEs go at it the good old-fashioned way: manual pen and paper processes that take time and effort.
If you’re an MSME on the fence about investing in a payroll management system, you’re in luck. We outline below what makes a payroll management system worth it and what you should look for in one.
1. Automated benefits and taxes calculation
A good payroll management system should, at its very core, enable MSMEs to automatically crunch the government-related mandatories of their employees, including taxes and contributions to social security, state healthcare, and housing, with all computations compliant with regularly updated standards. Such benefit calculations can be complex and may take into account even factors such as location, working hours, and active days. One wrong entry, and you might find yourself in a needless and easily avoidable legal battle. Automated calculations reduce the risk of human error, ensuring accurate disbursement of benefits to employees.
2. Salary and payroll cycle management
Every company has its unique policies and structures regarding salaries and payroll schedule disbursement. MSMEs with more than a handful of employees with different functions will likely have varying payment structures and payroll cycles. Company policies regarding compensation and benefits may also change over time as business health, industry standards, or regulations evolve. Moreover, businesses may have a combination of daily, weekly, semi-monthly, and monthly payment schedules. An adaptable payroll system enables MSMEs to easily handle these variances while ensuring that employees are paid the correct amount at the correct times.
3. Embedded and automated human resources process features
Human resources (HR) functions such as attendance tracking, leave management and employee onboarding should go hand in hand with your payroll management system. Integrating these streamlines administrative tasks, reducing manual data entry, minimizing error, and increasing overall organizational efficiency. Moreover, a payroll management system with automated HR features ensures that data related to employee presence management is accurate and up-to-date, at the same time ensuring that payroll calculations are correct and compliant with labor laws and company policies. This seamlessness becomes more critical the larger a workforce becomes.
4. Real-time reports and metrics
Your payroll management system should be able to provide real-time reports and analytics into payroll trends, employee costs, and compliance metrics to enable you to make decisive actions when they count. This is especially important when the MSME is trying to resolve an issue, identify trends with salary-related finances, and optimize payroll processes. By having trends and patterns in payroll data easily accessible, organizations can make adjustments to manage costs, such as adjusting overtime schedules, monitoring labor expenses, and optimizing staffing levels.
5. Easy setup
But what good is a functional payroll management system if it is a pain to set up and is hard to use? Ideally, the payroll management system you start using is straightforward in this aspect, so you can deploy it quickly while minimizing downtime and disruption to your payroll processes. An easy-to-setup system also means less training time, freeing up your HR staff to focus on their other important responsibilities. Lastly, as competition gets tighter and tighter in all business sectors, a quickly installable payroll management system will enable your MSME to better position itself for success.
As a decades-long partner of MSMEs, M Lhuillier knows the struggles that business owners face when it comes to managing payroll finances. In developing its ML Payroll PRO system, M Lhuillier seeks to share its legacy of financial expertise to revolutionize the way MSMEs operate, empowering them by simplifying and automating their critical payroll functions and processes. Not only does the ML Payroll Pro boast of the above features, it also is COMPLETELY FREE TO SETUP and has NO SUBSCRIPTION FEES. What more can you ask for?
For MSMEs looking to explore the advantages of the ML Payroll PRO system, you may contact (+63)947-999-0751 or email [email protected] to discuss how ML Payroll PRO can take your business to the next level.