Situation: You are using an outdated payroll solution, and there are distinct benefits to moving forward such as improved efficiency and improved customer satisfaction. But you don’t want to move because the economy seems dismal, and you want to keep your money instead of spending it on software. If you take a closer look, you might just realize that keeping up the outdated payroll system is costing you more than the money it would to purchase a brand new system. Here is why your outdated system can be costing more money and time than you expected.
Paper
While it may not be top of mind, quite a lot of paper can be used while processing payroll: checks, envelopes, stamps, paper for report printing, and more are commonly used during the payroll process. All of these things cost money. What is a printed check if not an expendable piece of paper which costs your organization money, yet lasts only until it makes its way to the bank? By implementing direct deposit, money is transferred electronically, eliminating the need for printed checks. This helps the environment by reducing paper checks, envelopes, and printer ink and wear. According to electronicpayments.org, checks add 3.6 million tons of CO2 to the environment as they travel through the payment cycle! Think of the process of printing paychecks. Gather the pay data. Be sure to keep enough checks on-hand. Get the printer ready. Line up the paper. Print and collate the checks. Hand them out or mail them. Keep the ones for the employees not present and remember to hand them out when they are present. Just think of all the steps you can eliminate by sending pay electronically! This saves your company valuable time and money. According to NACHA, small companies can save up to $3.15 per payment per employee by using direct deposit*.
Speed
Think about how fast the computer industry moves. What used to be a ‘nice machine’ at 64K of memory is today’s dinosaur! How fast is your older payroll software system? And how much money would you be saving in processing time by upgrading to a system that works twice as fast? How about three times as fast? Those processing payroll will be able to perform their job more efficiently with a system that runs faster too.
Service
When you or your staff has questions about a pay run or the payroll system in general, are you able to get your questions answered in a timely manner? If your product is no longer supported, you will not be able to get your questions answered and will be left to handle questions and problems on your own. Updating to newer technology will allow you to ask questions and get help when you need it, which will allow payroll processing to be done much faster and more efficiently.
Double-work
Is your staff spending more time ‘tricking’ your payroll system than simply working with it? This is the scenario you don’t realize you are doing until after you change software. Set aside one whole week, where you consciously keep track of how much time you or your staff spends manipulating your software to handle the processes you need to enter or analyze your data. Are there tasks such as time entry or check writing that are taking you three to four steps when they should really only take one or two? If so, you and your staff could save significant time by moving to a system that can handle your needs.
Don’t feel bad. There are many business people who simply stay with the software they have even while they know full well they really should move to something different. They know that their security would be better, their processing would run more smoothly, and that they would save themselves and their staff valuable time by moving to newer software. Feeling bad won’t help, but developing a plan to move forward will. Even if you can’t make the switch now, planning it out ahead of time will reduce the worry and stress you are feeling right now.
CenterPoint Payroll software has the tools to save businesses significant time and money. Sign up for a free, personalized demonstration of CenterPoint Payroll today, to see if it is right for your business.