Labor costs consume the biggest part of the budget for the majority of businesses. An estimated 70% of business spending is on labor, making it—for many companies—the number one cost; it is also one of the first places many employers look to cut when trying to find ways to rein in spending.
Satisfied, productive employees are central to a well-functioning business, and software tools can be of assistance to busy employees while also helping to reduce labor costs.
Consider five ways that the right software can reduce labor costs and help transform the working environment into a more positive and productive place.
Software cannot satisfy every business need; nor can it replace the personal touch that human interaction brings to the customer experience. But software for routine, back office, and bookkeeping tasks can be enormously helpful in saving time and money while still improving organization. Automating tools abound for invoicing, accounting, payroll, customer service, scheduling, and other essential tasks.
If your business has needs outside your area of expertise (or beyond your time availability), freelance and contract workers are an economical alternative to full-time, salaried positions. There are so many freelance entrepreneurs right now, offering services of all kinds to businesses, that it is not hard to find someone who can provide needed services through an affordable time- or project-based contract. Such an arrangement can be ongoing or one-time-only, and can be financially beneficial to both parties. Online, cloud-based tools allow your management accounts to be accessed by freelance workers who may not be working onsite. Software products that integrate with each other and sync data in real time mean that all your accounts are automatically kept up-to-date and that everyone on the team is working with the same set of data regardless of where or when they work. Cloud-based tools that enable remote workers to stay connected from anywhere allow businesses to reduce overhead costs while simultaneously expanding the hiring pool—a big benefit for companies that are struggling to meet staffing needs locally.
Web-based tools for businesses are designed to be as easy to learn and navigate as possible. They have to be simple and straightforward—with good customer support when needed—in order to stay competitive in their own market. Online, cloud-based applications can be learned quickly by multiple people so that employees can easily lend a hand to a busy colleague, cover for an absent one, and generally fill in wherever needed. This did not used to be possible with device-specific downloads that required training and to which only one or two people had access. Online tools for businesses today focus more on accessibility and simple navigation for quick adoption and integration.
Managing payroll, calculating deductions, and filing payroll taxes can be complicated and time-consuming tasks that often require expertise to be done properly. Online tools for businesses now offer HR management services that allow you to calculate and run an accurate payroll and issue timely paychecks to employees. Often available through tiered subscription options and/or per-employee costs, cloud-based tools for small businesses give affordable, time-saving access to expert-level payroll management and greatly reduce opportunities for human error.
Employee turnover costs businesses millions of dollars every year. With the wide availability of professional jobs and remote and hybrid options, employees dissatisfied with menial, repetitive, or unchallenging tasks that don’t feel inherently valuable tend to leave their positions. Software may not be able to solve every problem, but it can be a lifeline for beleaguered employees whose time and energy are heavily burdened by routine bookkeeping and clerical work. Software products improve accuracy and free up employee time, allowing workers to focus on more creative and satisfying endeavors, which makes them less likely to leave in search of more rewarding opportunities at other companies.
Financial software for businesses offer just the kind of cloud-based, mobile-optimized tools that can accomplish many of the goals above. Selecting accounting, payroll, and payment tools that integrate with each other gives your business the best of all the features available and streamlines tedious data entry and bookkeeping work for the most time- and cost-effective way to manage your team and maximize their talents.