MANUAL VS COMPUTERISED PAYROLL SYSTEM
16th Feb 2020 3 mins read
Lets have an honest review of why its better to switch from a manual system to a computerised payroll system. Back in 1996, when VNV Software launched its payroll version it was a herculean task to convince the companies who were comfortable with their excel based payroll systems. Literally we had to work out a presentation sheet weighing the pros and cons to make the business heads switch to the computerised payroll system.
In the longer run it paid, and today as we launch the cloud based online payroll software, its more than a sneak peak as the proverb says new wine into old bottles . Here is weighing the pros and cons and the working of a payroll software for all those who still use manual systems.
What is a computerised payroll software?It is a software which helps gives your company the personnel system to manage keeping employees' financial records including salaries, wages, bonuses, deductions, and net pay. Its powerful to overcome the sluggishness and the error fatalities that are faced in manual payrolls.
How does this switch benefit the company?Well, the company gets more organised, which leads to the improvement in the productivity of the employees of the company. Its a proved fact. The time and energy consumed in a manual system causes errors, underpayments of benefits as well as nefarious acts do prevail, like un-necessary deductions, omission of employee benefits or delay in salary payment which is difficult to track down.
So to sum up in a nutshell:
1. Accuracy in reward computation can enhance employee's productivity
2. Employee's productivity could be boost through job enrichment
3. Timely payment of employee's benefits increases their productivity
How does the computerised payroll process work ?There are 3 stages to it:-
Stage 1Employee Master, Unit name and Rates, Unit wise Payslips, Salary heads like Basic, HRA, washing etc, deduction heads, pf esi, salary reports, bank transfers, records of old salaries and attendance are some of the features a good payroll must have. The rates and heads are to be discussed and finalised.
Interacting with multiple departments and gathering info an integral part of the Payroll process. So VNV Payroll have unit wise installations so that they can be consolidated together without any effort Integrated features like Leave and Attendance Management and Employee self-service portals also make the job easier.
Stage 2The input data is fed into the system, the software has the right calculations to apply the necessary taxes and deductions. Monthly Statement, Challans, Form 5, Form 10, Form 12A etc are automatically generated. PROFIT PER UNIT, Single click view of all salary made in different units for a guard, Outstanding Reports, Track all Deductions made on bills are just some of the highlights of our payroll software.
Stage 3At the time of processing all statutory deductions like EPF (Employee Provident Fund), TDS (Tax Deduction at Source) and ESI (Employee State Insurance) are deducted. The payroll administrator then sends the amount to the appropriate government agencies.
So how ever small your business is its worth shifting from a manual to a computerised payroll initially and later when your process is steady you can shift to a cloud based one.
So once you decide the buy and install your payroll software, keep in mind the required specifications of your computer for the ease of running the payroll software without any glitches. The other important question to ask is the security of the data, so keep reading our blogs to know more...