5 Benefits of Using Payroll Management Software in SMBs

By Marianne Chrisos - Last Updated on January 6, 2020
Using Payroll Management Software in SMBs

The HR landscape is changing. Sometimes it’s harder to identify or recognize the changes that human resource groups are making, because much of the HR process happens “behind the scenes” and because so much of HR does remain unchanged: it’s still the place where payroll gets run, employees get recruited, compliance is monitored, and benefits are being administered.

But technology and workforce generational changes have informed the way these processes happen and changed the HR landscape. Technology has, by and large, helped to improve the HR process, from recruiting talent to onboarding to compliance, helping to combat many of the challenges and pain points that HR groups currently face.

How can using payroll management software help your small business?

Small businesses can struggle with HR, as they often have fewer resources, both in money and in people, to dedicate. The software can make small business owners’ lives much easier. Payroll management – which can include PTO and leave tracking, scheduling, overtime and deduction compliance tools, and direct deposit – has huge benefits for SMBs, from time and cost savings to more peace of mind around operating a business.

The benefits to HR and payroll management software

The biggest benefits of using HR and payroll management software


Ensuring accuracy in your payroll is extremely important. Not only does it mean an accurate paycheck for your hard-working employees and allows you to avoid going back into the system to make changes, it keeps you compliant with all state and federal deduction mandates, allowing you to keep your risk of legal problems down the road low. You’ll never have to worry about missing a tax update or code with a software that automatically updates with any changes that affect your HR team and payroll operations. Reduced human error can save your business a lot of trouble, now and in the future.

#Cost reduction

Related, payroll management solutions help your business save money. By always ensuring accurate paychecks and compliance, you can be sure to keep your costs right where you budgeted. Also, payroll software helps your business scale cost-effectively. Cloud-based software often operates under the “pay as you go” method, allowing you to add additional users, employees, and storage space down the road so you’re only paying for the services and accesses you need when you need them. Cost-savings can be reinvested into other parts of your business to help it grow and thrive.

#Time saving

Business is, well, busy. This certainly true for high-growth SMBs. Whether you’re a small business owner who has to handle payroll tasks yourself or have a small team of HR staff who have to handle all the HR responsibilities, payroll management software helps automate many payroll tasks, helping to free up more time to spend on other duties like attracting new employees, handling benefits administration, working on employee relations, reducing risk, and growing the culture of your small business by things like event planning, book clubs, and more. Plus, payroll software gives your business the ability to quickly run reports, check expenses, monitor PTO, and more to help run HR operations more efficiently.


Privacy is a top HR priority. HR-related data is sensitive and includes personal information like mailing addresses, dates of birth, social security numbers, bank details and account numbers, phone number, and more. Payroll software helps to ensure that this information remains safe, private, and confidential with measures to protect data leaks. It also gives HR teams and leadership the ability to give access to certain personnel only.

#Ease of use

There are several ways in which payroll management software make HR an easier part of the overall business operation process for SMBs. First of all, you don’t need to be an HR expert to run payroll software. Most software platforms have guidance and tutorials to walk you through the initial process, so you don’t have to have any experience – the software is your payroll expert. If additional support is needed, most software comes with some type of access to workplace specialists and HR experts to help field questions. It also ensures access to software experts who can help troubleshoot problems with the actual software, should they arrive.

There are a lot of good reasons to employ payroll management software at your small or medium business. It keeps HR employee and efficiency up, and overall employee morale up. It doesn’t require any specialized training and can scale with your business – both very important considerations for growing companies.

Finding the right payroll software management tool is key. If you’re looking for the best way to increase productivity, lower costs, ensure compliance, and create a better experience for HR teams and employees, you should consider payroll software. It can help you grow engagement and empower you and your business with a sense of freedom that comes from knowing your business is compliant, your people are being paid, and your employees are using their time effectively. Ultimately, payroll software solutions can pay for themselves over time. Let payroll management software play a role in building more streamlined business processes for better business.

Marianne Chrisos | Born in Salem, Massachusetts, growing up outside of Chicago, Illinois, and currently living near Dallas, Texas, Marianne is a content writer at a company near Dallas and contributing writer around the internet. She earned her master's degree in Writing and Publishing from DePaul University in Chicago and has worked in publishing, advertising, digital marketing, and content strategy.

Marianne Chrisos | Born in Salem, Massachusetts, growing up outside of Chicago, Illinois, and currently living near Dallas, Texas, Marianne is a content writer at a c...

Related Posts.