SME companies and startups are the future of our economy. Although these companies start as small offices and with very few employees, they hold huge potential to grow with the right business model.
To achieve long-term success, SME companies are required to maintain a transparent relationship with employees. A smooth and accurate payroll processing in India is a necessity today to enhance employee faith and productivity.
In this context, payroll software is essential for every SME today to boost employee retention and productivity. To know how to read this blog till the end.
Common Payroll Processing Challenges for Small Businesses in India
Setting up start-ups and small and medium-scale businesses in India is a work of persistence. Amidst juggling multiple tasks related to business expansion, manual payroll processing in India is a hard nut to crack.
The points below will take you through some of the very common payroll processing challenges that tend to hinder daily roles of SMEs.
• Maintaining Record
Every large-scale company and SME must maintain a thorough record of every salary disbursal for individual employees. Besides business purposes, a comprehensive record keeping of payroll is important for compliance reasons as well.
• Tracking Changes
Another problem that both big and small companies tend to face with conventional payroll processing in India is maintaining an authentic track record of changes. Manually maintaining a record can lead to instances of failure to add new changes. A slight discrepancy in payroll records can cause major problems for both HR and employees.
• Manual Processing
Manual payroll processing is a time-consuming and strenuous job when done manually. Also, for manual calculation, an accountant considers several factors. This might include benefits, tax deductions, incentives, and bonuses among others.
So, calculating payroll for individual employees becomes a tough job for SMEs using conventional payroll processing in India.
• Privacy Issues
Payroll processing in India also encompasses the protection of every individual’s data from the growing threats to data privacy. Any activity of data breach can lead to several miscreant activities. Thus every company requires strict and clear policies regarding protection of data and information privacy.
• Misclassification
Every company whether big or small maintains a record of their full-time and part-time employees along with freelancers. Regardless of the company size, there can occur instances of misclassification of information. This usually happens when HR professionals or the management team handles the data manually. Misclassification can lead to discrepancies in payroll generation and the employees might not receive their benefits on time.
What is Payroll Management System?
The above challenges in payroll generation are common to every organization. However, in today’s world of digitization, you no longer need diverse solutions to address individual problems.
If you are an SME owner and battling similar challenges in managing similar challenges in payroll processing in India, an automated payroll management system is your go-to solution.
Wondering what payroll software is?
Payroll software is a digital platform that assists you in computing payroll for every employee without much hassle. All you need to do is enter the necessary parameters for calculation. The platform will calculate payroll for every employee as per the data fed. The platform will generate payroll for individual employees every month.
Moreover, besides calculation, this platform will also store the payroll history securely. Even every employee can track their payroll-related information in real-time from their end through a payroll management system. They can also download the payslips that this platform generates and save them on their devices.
Noteworthy Features of Payroll Software
For a deeper idea about what a payroll processing system is and how it can help your SME company’s business grow, take a look at the salient features of payroll systems.
- Integrates time tracking systems for actual pay calculation.
- Automated payroll processing and calculation.
- Assists in compliance with tax laws.
- Offers an employee self-service portal to ensure access to personal information with ease.
- Customizable reports and analytics for every industry and business model.
- Ensures data security and encrypts it from third-party access.
SME companies and startups hold high growth potential. To help unfold them, it is high time now for SMEs to embrace automated payroll processing in India.
However, choosing what payroll software is best for your SME requires an overwhelming amount of research. To select the right software, it is important to ensure the platform aligns and can customize its features as per your business model.
How SMEs can Benefit From Emossy Payroll Management?
- Multiple pay groups to classify payroll as per individual employee parameters and compute accordingly.
- Auto payroll set up feature that generates payroll for every employee and provides a detailed payslip.
- With Emossy, generating a detailed payslip for every employee and timely disbursal of salary is no longer a headache.
- Besides calculating the standard CTC, the platform can meticulously calculate the PF, ESI, professional tax, and other tax calculations accurately as per individual requirements.
Bottom Line
To conclude, payroll processing in India manually can be quite tough for SMEs while focusing on business expansion at an exponential pace. Furthermore, inability to maintain an accurate and transparent payroll will also affect employee retention and future recruitment.
Therefore, an automated payroll management like Emossy, is definitely what you need to ensure accurate and timely payroll generation along with data privacy. Sounds interesting? Explore our website to learn how Emossy Payroll software features can assist manage payroll generation seamlessly.
Frequently Asked Question
Do I need payroll processing software in India for my startup?
Registering for an automated payroll processing software for a fairly new company might sound pointless initially. However, it is important for your business as you employ more individuals and your business grows.
What are the benefits of a payroll management system?
With a payroll management system, companies can improve payroll processing in India with perks like compliance flexibility, improved data security, lower employee retention, reliable and accurate calculation, and automated notification.
