Advantages Of Using Manual Payroll System

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The Disadvantages of Traditional On the Clock Punch In SystemsThe process of keeping track of hours worked has always been a complicated task. Over the years, various solutions have been created for tracking employee attendance. Among the most popular of these traditional on the clock punch in systems are the time card, the punch clock, and time sheets.Each of these options has their own disadvantages. During the past several decades, businesses have slowly begun integrating software and modern clocking terminals to more accurately track employee attendance. Discover the disadvantages of using traditional systems and find out why you should consider upgrading to an.In the 20 th century, the need to accurately track employee hours has become an essential part of running a business. Laws were put in place to protect employees and ensure they were properly compensated. Businesses began using various methods of tracking employee time.

  1. Advantages Of Using Manual Payroll System Pdf
  2. Advantages Of System Software
  3. Limitations Of Payroll Management System

While these methods allowed businesses to record employee time, they also possessed flaws. Here are the primary disadvantages of these traditional systems.

There is a Potential for Human ErrorWhen you rely on punch cards or time sheets, there is always the potential for human error. Employees may inaccurately enter their time on a time sheet or the information may be entered incorrectly into your accounting software for payroll.These errors are common in a workplace when using manual time attendance solutions.

Your HR department can spend a large amount of time correcting these errors. The errors that go uncaught could result in incorrect pay for employees and other payroll issues. Employees Can Commit Time TheftManual timesheets and punch cards do not prevent time theft or buddy punching. With manual time tracking, an employee could use another employee punch card to clock them in for their shift. This is known as buddy punching and is a common problem among large businesses. Manual Time Tracking is Time ConsumingA lot of time is spent handling timesheets and time cards. Your employees may need to stand in line to punch in or out and your HR department spends time dealing with time card issues.

Advantages Of Using Manual Payroll System Pdf

This can include the replacement of punch cards, correcting timesheet errors and mistakes, and other problems that arise when using manual time tracking systems. They are Inefficient and OutdatedThe bottom line is that manual on the clock punch in systems is inefficient and outdated. They can have a large impact on your business performance. Time clock errors can cost your business tine and money. These issues become bigger with a large business.You can keep the disadvantages of using manual time clock solutions to a minimum when you only have a dozen employees. But, with a thousand or more employees, you could be losing thousands of dollars in payroll errors and time theft every month. The Advantages of Upgrading to an Automated Time Tracking SolutionNow that you understand the primary disadvantages of using a traditional on the clock punch in system, discover the advantages of automated time tracking software.

Advantages Of System Software

Technology is constantly advancing. It only makes sense that the way you track employee time would become a part of modern technology. Find out why advanced time tracking software is the perfect solution for any business.What is an automated time tracking software? Basically, this refers to a software that logs employee attendance and exports data to a payroll or accounting system. The method used for clocking in or out can vary. Some of the include, proximity terminals, and.Each of these options can be combined with other workforce management solutions, such as rostering software and HR software. You can create a time tracking solution that matches the specific needs of your business.

Prevent Payroll ErrorsWhy is a time tracking solution more beneficial than traditional on the clock punch in systems? For one, they eliminate the potential for human errors. The payroll errors that are common with manual options are not an issue when the software automatically compiles employee attendance data. Prevent Time TheftIf you choose to use biometric terminals, you can eliminate the potential for time theft. A biometric terminal requires employees to scan their fingerprint.

The system then verifies the identity of the employee and clocks him or her into the system. Buddy punching and other forms of time fraud are simply not possible with a biometric terminal. Improve Efficiency and ProductivityWhen you use time tracking software, you should notice an increase in productivity and efficiency.

Advantages of using manual payroll system pdf

Many of the tasks related to dealing with punch cards and time sheets are made obsolete. Data is electronically sent from the clocking terminal to the time tracking system where your HR department or managers can access employee attendance. Less time is spent dealing with attendance issues.Over two-thirds of businesses still use manual on the clock punch in systems. It may be time for you to think about making the switch to an automated time tracking solution.

Learn more about time tracking software and other workforce management solutions.

Limitations Of Payroll Management System

Before diving into buying yourself a payroll system for your business, it is righteous enough to know first why you are buying one? Will this be an asset that could help the company’s state? Will this help in a quicker production of payroll?Here in the Philippines, wages are deducted from taxes and other government requirements as these are mandatory deductions and obligation of a working employee.Another is to increase in salary due to holidays as the Philippines has quite the. Though these movements to your salaries are foreseen changes, having a payroll automatically computes it for you makes production of payroll a lot faster and accountable for little to no human error.

But what really is a payroll system.What is a Payroll System?It is a software created and designed to not just compute an employee’s salary as well as the deductions such as taxes and government deductions. This also includes the filed leaves of absences whether it is a vacation, sick, or emergency type of leave, it will then be compiled alongside the computation of an employee’s wage.On a more technical side, the system includes gathering of timekeeping information, computation of wages, disbursement of salaries and pay slips.Advantages of Using a Payroll SystemAccuracy is expectedInitially, a user will need to input a new employee’s information together with their salary without deductions. The system will then compute the wage in a recurring basis minus the deductions to output the deducted salary. The good thing about this system is due to the little interaction of manual actions, accurate outputs are expected.If for some unknown reason, a system suffers from a glitch, the business could then ask for a refund from the provider as it is an anomaly in their created system and accounts for a money back unlike when it is a manual mistake wherein reimbursement could be done to subordinates.Lesser costHow it is less? Simple, compare hiring an accountant who will do the manual monthly computations and produce reports within a certain time though works for a small company but if the company is a bigger one then this could be time-consuming and be prone to human errors unlike having a system to do the job for you.Operation of this system requires little human intervention as the system is already capable of the complex computations needed in producing an employee’s payroll. To make the investment worthy, be sure to have the produced system be created according to your needs to ensure effective and efficient computations.Adaptable to changeSince every regime in the Philippines always wants change, it is not a shock that every government deductions will be changed as well.

It is good to note that a payroll system provider has the capabilities to deliver a system able to cope with the changes thus making it adaptable to changes.Promotes higher securityHow a payroll system promotes security? A payroll system prevents payroll frauds in such are ghost employees (employees who are included in the payroll system but is no longer or is not working for the business), payment manipulation or data breach.It is of good note that the system notifies users to update login credentials to avoid data breach. The update could be every month or quarterly or what fits best to the business.Note: Before acquiring a payroll system, be sure to be knowledgeable of the processes of the payroll system in the Philippines as this is crucial to computing an employee’s salary.Having a would enable you to have accurate results in no time enabling the company to focus their time to other business activities.