Hundreds of years ago, such a thing as payroll software didn’t exist. The first signs of accountancy may have been evident as early as 4000BC but nothing approaching modern bookkeeping really made a mark until the time of Leonardo da Vinci. Since then, though, there has been a significant evolution in the way records are kept. Much of this reflects the growing trend for workers’ rights and the increase in legislation governing business and how people are paid. It is possible, though, to identify three key reasons payroll software has become so popular since the final decades of the twentieth century.
Making working more efficient
One of those reasons is that it makes working more efficient. Once, payrolls had to be maintained manually, with all calculations worked out by whoever was in charge of it. This made the process complicated and liable to human error, whereas payroll software can take on much of the burden. This frees up accounting staff to focus on other aspects of their jobs and makes payroll management much quicker than it used to be.
Accurate financial records
As suggested above, working out payroll calculations by hand can lead to errors. With such scrutiny of business in place in the modern world, it’s vital that companies do everything they can to avoid such problems. Payroll software can handle tax and NI calculations, as well as pensions, student loans, sick pay, holiday pay and other issues. This means that employees are more likely to be paid the right amount at the right time and companies should experience fewer auditing problems.
Meet tax and other contributions
Also, the tax burden on businesses is bigger and more complicated than it was when the idea of the payroll was first developed. This means it’s a big job to deal with, so some understanding of payroll software – which can be gained through payroll training or payroll courses – is very useful for businesses, whether they are big or small.
