Payroll bloopers are no less than a nightmare and a major concern for small businesses that still rely on paper based salary processing. Entrepreneurs of small businesses are more focused on their business, improving strategies and development rather than paying heed to salary and payroll operations, which leads to issues like errors in accounting, management, document loss, etc., eventually leading to increased costs.

In addition, SMEs often end up using third party or standalone applications for storing their data like attendance, arrears, benefits, deductions, loan information, etc. This is not advisable, since it just adds to the burden of the HR team. There is also computation of taxes and other deductions, which are salary component and require huge formulas to get to the right number. Imagine the cascading effect that one mistake will have, and the additional nightmare to find that mistake in time to rectify it.

Here are four flashing signs indicating that a business is failing at payroll:

  • Errors and errors

As if manual calculation of salary was not enough, the HR team also needs to calculate the leaves, attendance, arrears (if any), earnings, etc. of every employee manually to process the salary, now imagine doing that monthly. If more and more mistakes take place, it is a glaring sign that an HRMS software is needed. It eliminates mistakes in calculation, since it automates the tedious process of salary computations. Also with the provision of self service, employees can have analysis of their daily reports and any queries can be reported to the HR, if found.

  • HR team spending too much time in paper work

Indulging in a lot of manual work leaves a lot of paper trail. It becomes difficult to manage, maintain and preserve these documents for a longer period. Automated calculations and self-decision taking capabilities save lot of paper. It acts as a central repository and eliminates manual dependency.

  • Spending too much on hiring

This is one factor, which affects the profits at the end of the year known as turnover. When the time and money involved in hiring or F&F settlement are paper based, it leads to processes that cost up to 10% of an employee’s salary on an average. This hectic process can be easily done in few steps when performed with the help of a payroll software. Onboarding is fast including induction and training, which makes the gestation period of employees shorter and helps the HR team contribute to the company’s bottom-line.

Read also: How HR software can ease your full and final (F&F) settlement process?

  • Trust issues

This might happen between employees and payroll department. When all the work is maintained offline, employees often are unaware of the deductions or earnings being made to their salary. Having a payroll software might build trust and promote communication between them. A payroll software integrated with self-service portal would allow the employees to download their payslips and check other payroll details as well.

Pocket HRMS is one such HRMS solution, which eliminates most of the routine problems faced by HR personnel in a company. For a free trial SMS SALES to 56767 or write to us at


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