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To continue trading successfully, businesses need to constantly re-assess their efficiencies. This has become more relevant in a world that is facing harsh post-covid economic realities, further impacted by the conflict between Russia and Ukraine which has resulted in rising interest rates and ever-increasing input costs.

For many smaller businesses, the wage bill is the largest single expense and if not managed correctly, it can lead to greater costs and disgruntled employees that will impact productivity, work quality and service levels.

So, at what stage does your business qualify for Payroll and HR software, or even outsourcing the function?

Consider some of the following:

Does your workforce fluctuate and are they geographically dispersed?

If you only have a few permanent employees, who are in one place, the process of paying them should be straightforward. If, however you run more than one branch or an employee roster that varies with permanent staff, part-time employees, contractors or even interns, this will make the process more complex. Some employees may be paid salaries and others may be paid by the hour.

Even if your workforce is small, you may run incentive schemes and pay commissions that will make the process more complicated.

How do you record sensitive payroll information?

Payroll records are sensitive, as they include ID numbers, addresses and other personal information that is integral to managing the payroll. Simply storing this information on file or on a spreadsheet that is kept on your computer may pose a risk to the security of the information.

A managed cloud storage system that is linked to your software solution is worth consideration, both in terms of accessibility as well as security.

Do you achieve consistent payroll accuracy?

Every employee expects to be paid on time and correctly. In addition, other records like accumulated leave, overtime, commission and bonus calculations should be accurate and meet the terms and conditions of employment. If there are constant glitches and mistakes this will lead to mistrust and can impact employee outputs and staff retention.

It is also important to ensure that payroll taxes are accurate to avoid penalties and unnecessary complications e.g., UIF claims that can be costly if they were not dealt with precisely in the first instance.

Are you compliant and up to speed with the latest changes to legislation?

There are frequent changes to the tax tables and other laws that govern the payroll. If you are not fully conversant with this ever-changing environment you run the risk of not being compliant with the latest legislation. This can lead to costly penalties, disgruntled staff and hours of unnecessary administration.

Do you have the time to give to areas of your business that are not income-generating?

Payroll is a time-intensive function. You may feel like you’re constantly trying to keep up with pay period after pay period and mistakes could occur resulting in payroll delays or noncompliance, all of which require immediate attention to fix quickly. This places an enormous burden on business owners who do not have the capacity to deal with administrative errors. The result can be an endless cycle of fixing payroll errors leaving little time for your core business!

So, what is the solution?

​The Sage 300 People package is an effective solution as it offers an integrated Payroll and HR system that enables an agile workforce and allows organisations to respond quickly and effectively to changing priorities. Unlike traditional systems that required you to be chained to your desk, Sage 300 People offers a secure system that is highly configurable and gives real time workforce visibility that enables an agile workforce.

The SQL platform on which Sage 300 People is built allows for rapid deployment making it cost efficient with the added advantage of offering role-based security up to field level. Bulk functionality eases up time to focus on business activities. Empowering your employees means that they become the custodians of their leave and personal information with self-service functionality, offering the tools to transform your HR department from an administrative function, into an employee-centric function.

Sage Managed Cloud Services is a world-class offering that will allow customers a secure, scalable and reliable online experience to access their Sage software solutions online. Customers and partners will benefit from a software service offer from Sage which means that they do not need to invest in infrastructure or the technical skills to maintain the infrastructure, freeing customers and partners to focus on their businesses.

Consider some of the benefits of Public Cloud Deployment

  • It is scalable and flexible to fit your agile growing business
  • It is a cost-effective option
  • It is easy to use and does not require any training.

On-Premise Deployment is where the customer purchases the software and hosts it on their own premises or servers. Customers would have to invest in SQL servers if they do not already have the functionality. Customers are also responsible for their own backups and updates as and when a new release of system is deployed.

The benefits of on-premises deployment are as follows:

  • Knowing your data is located within your in-house servers, may give you peace of mind with POPI legislation.
  • Your own IT infrastructure might be better as you can control who has access and you can set the policies
  • You can add more security measures than what cloud computing offers as standard.

The system if modular, so your business can tailor make a package that suits your needs.

Should your business experience any of the conditions that are set out above, then it may be a sign that payroll software or outsourcing could be exactly what you need. Accuracy, efficiency and a happy workforce, as well as time for you to focus on your core business, are key ingredients to making your business more successful.

LSPinc has been supplying, implementing and supporting Sage software solutions with personnel, who cumulatively have in excess of 20 years of experience. Our client portfolio is representative of a broad cross-section of businesses, ranging from SMMEs to large enterprises, demonstrating our expertise in dealing with organisations of all sizes.

For more information on taking the next step contact us for a consult at or on +  27 10 446 1800.