COULD YOUR PAYROLL SOFTWARE BE HURTING YOUR BUSINESS?

shneor fridman
Sep 25, 2024
2 min read

As a CEO or business owner, payroll is a critical function of your company, but could outdated or insufficient payroll software actually be holding you back? You might not realize it, but payroll inefficiencies can cost you time, money, and even compliance risks. Below are some common issues businesses face with their payroll systems, and how they can negatively impact your bottom line.

1. Old Software That’s No Longer Efficient

Using outdated payroll software can lead to a series of problems:

Limited reporting capabilities: When your software can’t generate extensive financial reports, it leaves you in the dark about key metrics.
Not user-friendly: If your system is difficult to navigate, it takes up too much time and increases the chances of human error.
Lack of integration with time and attendance systems: This can lead to inaccurate payroll and inefficiencies that eat into your profitability.

2. Multiple Payroll Systems or Files

Some companies use multiple payroll systems or manage separate payroll files within the same system. This can create confusion and inefficiency, such as:

Generating separate 941s and W-2s: This adds unnecessary complexity and can increase the likelihood of tax filing errors, leading to potential penalties.

3. Lack of Integration with HR and Timekeeping

In today's fast-paced world, not having an integrated payroll system that syncs with your HR and timekeeping software can create significant workflow bottlenecks. Manual data entry between systems increases the risk of errors, while real-time integration helps streamline the entire process.

4. Inability to Handle Multiple Cost Centers

If your payroll software can’t assign multiple cost centers (such as department, location, or division), it makes tracking expenses far more difficult. Without this level of detail, you might miss out on crucial insights about where your payroll dollars are going.

5. Failure to Automate Complex PTO Policies

Companies with complex PTO policies can find themselves in a bind if their payroll system isn’t capable of automating these rules. Without automation, managing different accruals for vacation, sick leave, and holidays can be time-consuming and error-prone.

How a CFO Service Can Help

This is where a CFO or CFO service comes in. A qualified CFO can introduce and set up a comprehensive payroll system that integrates with HR and time attendance, connects to your accounting system, and handles all your complex PTO calculations automatically. By setting up the right payroll infrastructure, you can eliminate inefficiencies, save time, and ensure compliance. Solutions like #Empeon offer this kind of full-service integration.