Not so long ago, all payrolls used to be calculated manually, without any help from a computer. Professional accountants invested a lot of time and energy into keeping track of all employee data, files and information, calculating monthly salaries, hourly remunerations, bonuses, sick leaves, benefits, taxes, deductions and so on. And they did this all by keeping numerous files filled with track records for each and every person employed.
Nowadays, however, thing are far more simple than they used to be. Because technology is always dedicated to making things easier and better, quite a wide variety of computerized payroll systems is available to save us from this tedious task. Now, instead of keeping dozens of files and spending endless hours calculating, all you have to do is get a payroll software system and let it do all the nasty work.
So manual vs. computerized payroll system? It really bares no comparison. A manual payroll system means doing everything by hand, while a computerized one will enable its users to store unlimited data, keeping track of everything. While with a manual payroll system you’d have to keep track of all employees’ time by hand, with a payroll software you can automatically transfer all punches or swipes directly into the system, which will store them instantly. It can even separate regular work hours from overtime, and calculate the different remunerations according to set parameters. And if human error sneaks in even with the most organized manual payroll system, a computerized payroll software will provide accurate calculations regardless of the amount of data stored.
The computerized payroll software systems save time and money, they’re very easy to use and they’re also very practical. There are several different types of payroll software systems, with various features, functions or advantages. And of course, the price will also vary according to the type of software. All programs, however, include essential features for storing employee information, files and track records, and will enable authorized users to enter, view or change information anytime. Basic features include paycheck processing, direct deposit options, payroll reports, tax reports, deductions, quarterly and annual ware reports and many others.
Moreover, while with a manual payroll system you have to do everything yourself, a computerized payroll software will calculate automatically all pay frequencies, employee statutory deductions, 401k contributions, bonuses, medical benefits etc. Basically, all you have to do is enter all the data upon which the deductions are based, and the software will handle everything else.
In conclusion, compared to computerized software systems, the manual payroll system takes up valuable time, resources and money. So instead of wasting valuable time with the tedious accounting tasks, let the software calculate the paychecks, while you work on developing your business, increasing production and revenue.