{"id":216,"date":"2020-01-20T09:51:00","date_gmt":"2020-01-20T09:51:00","guid":{"rendered":"https:\/\/epo2023.appletest.com.au\/?p=216"},"modified":"2023-10-26T09:54:43","modified_gmt":"2023-10-26T09:54:43","slug":"how-outdated-payroll-software-can-hurt-your-business","status":"publish","type":"post","link":"https:\/\/www.epayoffice.com.au\/how-outdated-payroll-software-can-hurt-your-business\/","title":{"rendered":"How Outdated Payroll Software Can Hurt Your Business"},"content":{"rendered":"\n

Did you know? According to the 2019 Payroll Benchmark Report,<\/em> a staggering 83 percent of 1,831 employers confessed to not having updated their payroll software since 2000.[1]<\/a><\/p>\n\n\n\n

That\u2019s not all. Of the remaining 17 percent of employers who had recently updated their payroll software, three-quarters of those employers admitted to using products suited for small businesses \u2013 despite half of them running a business of more than 100 employees.<\/p>\n\n\n\n

Based on these findings, it\u2019s clear that Australian employers have some serious catching up to do.<\/p>\n\n\n\n

Why most employers don\u2019t upgrade<\/strong><\/h2>\n\n\n\n

Unfortunately, most employers who do embrace new technology are small business owners.<\/p>\n\n\n\n

Why? Because for larger enterprises, migrating from an older legacy system to a modern, cloud-based solution is considered risky, complex, and time-consuming.<\/p>\n\n\n\n

To an extent, this makes sense. Large enterprise payroll systems are complex beasts. They have to do a lot of behind the scenes work to make sure employees are paid the correct wages and benefits on time, every time. Any disruption to this workflow, no matter how beneficial in the long term, could be devastating.<\/p>\n\n\n\n

However, the risks of not upgrading<\/a> your payroll software poses its own unique consequences. Worse still, many of these risks can go undetected for years before the alarm is raised.<\/p>\n\n\n\n

Here are 3 ways the use of outdated payroll software could be hurting your<\/em> business.<\/p>\n\n\n\n

1. No backups or disaster recovery plan<\/strong><\/h3>\n\n\n\n

If your business were to experience severe weather, a sudden power outage or IT malfunction, or even a malicious cyber-attack \u2013 can you confidently say that your payroll data would be safe?<\/p>\n\n\n\n

If the answer is \u2018No,\u2019 then the time to upgrade is NOW \u2026 before such an event occurs.<\/p>\n\n\n\n

Unfortunately, implementing a payroll backup plan can be complex, especially if your payroll system is large. The key to saving you time and money is by outsourcing your payroll duties to a dedicated payroll expert. They can implement a custom backup and data recovery plan just for you.<\/p>\n\n\n\n

Depending on your needs, the plan can cover crucial aspects like: automatic daily backups of data (either to a secure cloud, multiple devices, or an external server), alternative payment options for staff if one option fails, and educating staff on what to do if the payroll system ever fails.<\/p>\n\n\n\n

As a result, you can rest easy knowing that your payroll system is safe and secure, no matter what happens.<\/p>\n\n\n\n

2. Reduced productivity and efficiency<\/strong><\/h3>\n\n\n\n

Sticking to paper and manual-based tasks can easily chew up time in the payroll office.<\/p>\n\n\n\n

For starters, paper documents need to be printed, stored, and collected later for record keeping purposes. Sometimes multiple copies need to be printed, which negatively impacts the environment. On top of this, paper documents must be categorised so they can be easily found later on.<\/p>\n\n\n\n

Furthermore, older payroll software lacks the automation capabilities of newer software. This leaves the burden on payroll staff to fill the gaps \u2013 ranging from manual interpretation of timesheets, collation of leave requests, and pay \u2013 where that same time could be better spent elsewhere to improve the business.<\/p>\n\n\n\n

These days, modern payroll software can save both employees and payroll staff time. Tasks that were once done manually can now be automated. For example, web-enabled clocks can automatically track start and end times for employees, and then transfer that data to the relevant timesheet with automatic interpretation. Plus, newer DMS (Deduction Management Systems) can automatically take care of payroll deductions, such as child support, union fees, and superannuation, to name a few.<\/p>\n\n\n\n

Best of all? Aside from saving you time and hassle, this greatly reduces the risk of human error. As long as the software is set up correctly, checked on an on-going basis and managed by a highly skilled payroll expert, you have nothing to worry about.<\/p>\n\n\n\n

3. Inability to grow<\/strong><\/h3>\n\n\n\n

Has your payroll system stayed the same since the days of having 30 staff compared to now where you have closer to 300 staff?<\/p>\n\n\n\n

If so, you could be in trouble. Why? Because your payroll software may lack the ability to manage your growing workforce.<\/p>\n\n\n\n

Worse still, the use of outdated payroll software could hold you back from growing. Instead of expanding to include a more diverse and capable workforce, you\u2019re forced to settle for only what your payroll system can handle.<\/p>\n\n\n\n

By upgrading to a modern payroll system, one that can comfortably manage a large and diverse workforce, you will enjoy these all-in-one benefits:<\/p>\n\n\n\n