The payroll function of any business is one of the critical functions where the Payroll department has to calculate salary payable based on the number of days worked, allowances & other benefits. Additionally, statutory compliances like Provident fund, ESIC, Tax deduction at source have to have complied. The payroll processing also determines the employee morale, performance, reputational and legal complexion.
Traditionally, the employer used to create payslip and determine salary payable. However, with the advent of technology, computerized payroll software like Digital Dukaan App and Pagaar App not only expedite the process but also makes it cost-effective & reduces the chances of error. Following are some of the benefits of using an Online Salary App.
Attendance of Employee
Equipped with modern factorhr, employee attendance system calculates, how many days employee worked, taken leaves and also help us to determine the proper overtime hours. This system prevents the loophole in a traditional system like fake attendance, extra overtime hours, etc. It is a biometric machine that takes fingerprints while coming to the office or going from the office, which provides periodical & systematic reports.
Cost-Effectiveness
Traditionally, businesses used to have a team of payroll processing departments or hire professional service from outsiders, however in both cases, and higher cost used to involve. However, with the advent of online salary applications such as Digital Dukaan App and Pagaar App, less manpower is needed as software processes most of the data automatically. However, it also involves a one-time investment, but the benefit exceeds the other option in a longer duration.
Statutory Compliances
The statutory compliances like PF, ESIC & Income tax laws are frequently getting updated & involve a lot of complexities. Online salary app takes into account all the updates, amendments in the recent past & effectively calculates salary. This also saves Fines, penalties & Interest to the government.
Data storage
Traditionally, Employers used to store in paper form in bulk files. It was difficult to extract relevant information & takes a lot of space& cost. However, data storage in the case of an online salary app takes in either cloud or Server from where extraction and processing are much faster and also reduces the cost. With this, businesses can store employee data for a more significant number of years for legal cases. Also, searching for relevant data and extracting it becomes a lot easier.
Saves Time
As specified earlier, the online salary app saves time for the payroll processing department by processing most of the data automatically, and this helps in getting salary early, which boosts employee morale & performance. Further, cost-saving in a smaller number of payroll staff exceeds the one-time heavy cost in a longer duration.
Minimization of Mistake
When payroll processing is manual, it is easier to make a mistake, and more frequently whose rectification costs, statutory fines, penalties are much costly. However, When Payroll processing is software-based, it is challenging to make a mistake. Validation checks, programming helps to prevent from accepting wrong inputs, which later become a mistake.
Reporting of Payroll Data
Often management seeks payroll data to incorporate in financials or to make informed decisions. Online Salary App makes this task much easier & effective. With the proper attendance system and salary details, Payroll software can generate a number of reports for management decision-making. Also, Auditors can very effectively verify the payroll data for their reporting to stakeholders.
Increase Performance
Proper Processing of payroll & timely payment of salary boosts employee loyalty which decreases employee turnover & boosts their performance. This helps the organization to achieve its growth, targets, and market share. It also brings new customers and retains the older ones, which increases the profit and sales.
Enhanced Security
There is a security issue when organizations share private data with outside agencies, and they need to consider the IT System & security at the professional service provider. However, when the processing of data happens through an online salary app, there is enhances the security of critical data. Further, the organization should improve their own IT System & security.
Conclusion
As compared to traditional payroll processing, Software-based payroll processing is much more reliant, cost-effective & hassle-free, which improves employee loyalty and boosts their performance. Every organization should switch to an online salary app like Digital Dukaan or Pagaar App for payroll processing to maximize the benefits in cost as well as non-cost terms.
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