Why You Should Consider Automating Your Payroll System?


If you’ve ever had to handle the burden of paying employees in a business, you’re aware of the hassle that can arise. Not only do you have to keep track of each employee’s hours, but you also need to calculate taxes, fees, and other deductions. Then, you have to print out or manually distribute paychecks.

Now imagine having to do all of that regularly – it can quickly become quite overwhelming, particularly if you’re dealing with a high number of employees. At the end of the month, your calculations must be precise – otherwise, you’ll be bleeding profits from your business, or your employees might be dissatisfied with the payment they’re receiving.

There really is a lot to handle when it comes to employees and paying them accordingly. This is why more and more medium-to-large-sized companies are considering automating their payroll system with a dedicated solution like bluedotcorp.com. Still, there’s a lot to discuss regarding payments and payroll processing. Continue reading to understand more about it.

What Exactly Is Payroll Processing?

At its core, payroll processing entails handling employees’ financial compensation for their work. This usually happens bi-weekly or monthly, where an employer will calculate how many hours each employee has worked. They will then multiply that number by the hourly rate and subtract any other deductions that should be taken out before issuing payment.

It’s important to note that payroll processing is different from bookkeeping, even though the two are often confused. With bookkeeping, you’re simply keeping track of the financial transactions that have occurred within a company. This usually includes recording things such as invoices, receipts, and tax information. Payroll processing includes those aspects, but it also encompasses the actual process of issuing payments to employees. In other words, bookkeeping would be considered a subset of payroll processing.

There are a few different ways that companies handle payroll processing. The most common method is through in-house processing, where a designated employee or team within the company will handle everything from start to finish. Some companies also outsource their payroll processing to a third-party provider. This is often done by businesses that don’t have the internal resources to handle payroll processing on their own – or they simply want to offload that burden to someone else.

Oftentimes, companies will use a combination of both in-house and outsourced processing. For example, they might outsource the actual payment distribution to a third-party provider while still handling everything else in-house. However, in the last couple of years, more and more companies are resorting to an automated payroll system.

Automating the Payroll System – Benefits

There are a few key benefits that come along with automating your payroll system, which we’ll discuss in more detail below.


This is perhaps the most apparent benefit of automating your payroll system. By automating the process, you’ll no longer have to waste time on manual tasks such as calculating hours worked, processing payments, and distributing paychecks.

All of that will be handled by a software solution, freeing up your time to focus on other essential aspects of running your business. In some cases, you might even be able to eliminate the need for a dedicated payroll processing team altogether, thanks to automation.

Increased Accuracy

When you automate your payroll system, you can say goodbye to human error – all calculations will be done by computers, which are far more accurate than any human could ever be. This is important because even the slightest miscalculation can end up costing your business a lot of money – and it could also lead to unhappy employees.

Fewer Headaches

Running a business is hard enough as it is – you shouldn’t have to worry about payroll processing on top of everything else. By automating your system, you can take one more thing off of your plate and avoid the headaches that come along with it.


You might be thinking that automating your payroll system will be expensive, but that’not necessarily the case. In fact, it actually saves you money in the long run. Particularly in the healthcare industry, tasks such as payroll can be simplified and streamlined through NDIS Provider Software. Use an NDIS provider savings calculator to see how cost-effective healthcare software can be in terms of saving not only money but time. Paying another subscription for business often scares business owners away, but this isn’the case for automating payrolls. Since the system will be automated, you won’have to pay someone to handle payroll processing manually.

Automation Can Be Flexible to Your Needs

Not all businesses are the same, which means that their payroll needs will vary as well. The good news is that most automation systems are flexible and can be customized to fit the specific needs of your business. For example, let’s say that you have a team of remote workers who are located all over the world. A traditional payroll system might not be able to accommodate that, but an automated system will have no problem doing so.


Handling payments manually is a big problem for the vast majority of businesses, as it can lead to miscalculations and take a lot of time. Fortunately, automated payroll systems have become more available than ever, and they’re here to fix all of the problems that current payroll systems have. If you’re looking for a more efficient and accurate way to handle payrolls, you should consider automating your current way of handling payments.


Mark Funk
Mark Funk is an experienced information security specialist who works with enterprises to mature and improve their enterprise security programs. Previously, he worked as a security news reporter.