A general purpose blog from DanfeBooks team to share our knowledge and learnings.

Why Do You Need to Have a Payroll System?

Why Do You Need to Have a Payroll System?

Unlike in the hunter-gatherer era, in today’s world, we all rely on income to keep us living our lives the way we want it.

Whether we choose to work for someone living paycheck to paycheck or be in charge of our own company, we need to be consistent in what we do. Depending on our desires, we need to be able to monitor and track how much we earn so we can make accurate predictions and calculations to all things in our lives related to our expenditure.

It’s not just about that new car, meal, or fancy new pair of shoes. We must be able to efficiently calculate how much to pay for our tax outgoings, pension schemes, health insurance, and much more. However, to do this effectively, we as individuals cannot do this on paper as it would be too time-consuming and stressful outside of our working hours. Did we mention individuals? This also goes for CEO’s, Directors, and HR Managers of big companies or even startups.

Can You Guess What We are Talking About?

It’s payroll. Payroll calculates an employee’s salary and is one of the essential tasks carried out within any organization. Companies have to manage subordinate’s finances and provide accurate figures to the government. This means complying with current tax laws, recording information about new hires, editing current employee files with absences, sick leaves, adding bonuses, and deducting finances.

Arguably, this role is usually carried out by someone within the HR section of the businesses alongside the company’s accountant. It can be quite a skilled job to have to employ someone who has excellent attention to detail, numerical, organizational, literacy, flexible, and problem-solving skills. Because if payroll isn’t calculated efficiently and you have little evidence for it, you as a business could be held accountable.

If you underpay your employee, they could take legal action against you, which is not great, especially if you’re a startup with little funds. Similarly, if you overpay an employee too much, it could mean deducting income from their next paycheck, which in return could cause them to struggle and reduce staff morale in your company. This is not to mention if the IRS or taxman wanted to carry out an audit of your business, you would want to be organized and have transparent records.

Can you start to see the bigger picture? Payroll is an essential service every business MUST have. A lot of companies may spend a lot of money on an employee to perform these duties. When the truth is, you don’t need actually to pay someone a lot to carry out this. Nowadays, just like DanfeBooks, there is cloud-based payroll softwares that saves you money, increase staff morale, and minimize risks to carry out payroll effectively.

Here’s the deal:

A payroll system is the most effective when it’s operated in the form of cloud-based software.

Why is this?

As one of the best cloud-based payroll software in Nepal, we feel there are numerous factors why the payroll system should be digitized within your company.


If your business has been around a long time, you most likely have a range of new to experienced employees. We reckon no two employee contracts are identical, right? Which means you have a diverse set of data about your team. As each employee may have different holiday entitlements, tax brackets, insurance schemes, and even their bonuses may vary. Which means there is no set formula to carry out payroll for every employee.

If you’re using a paper trail, when it comes to reviewing staff entitlements each month, it can be tedious digging through previous information in their contract to producing an accurate salary sheet. DanfeBooks changes this, as soon as you add an employee’s information to the system, including tax details, the algorithm recalls previous entitlements and calculates quickly monthly calculations. All it takes is a little time to input the details into the system, creating an employee profile.

Increases Staff Morale

In countries like Nepal, the paper trail is still pretty standard within businesses. Employees often have family needs to fulfill, to help them live. One of which often needs help from banks approving and providing them loans. Banks require proof of income in the form of a salary sheet.

If your company uses a paper trail and the employee has to submit a request to the HR team for proof, this can take time. As from the HR side, they may not deem it as a priority. Therefore, employees’ morale can decrease and feel ignored by the company, often having to request a few times to gain a copy.

Using payroll software allows employees to access their salary sheet from anywhere at any time and print them off themselves. They can also go back and compare their previous salary sheets.

If you’re a startup, you have a scarce or a budget set for the running of your business Startups, can’t afford to make legal mistakes such as miscalculating pay, taxes, leave or attendance. If you have an organized system in place and update employee information as you go, your risks of mistakes are minimal to a paper trail. Therefore you have less chance of your employees taking you to court and you risking out loosing on your funds.

On the other hand, if you’re a big business, it’s more likely the employees will take you to court for even more money!

Saves Money

Often you need someone from the HR team doing this, or if you’re a startup, you may have someone undergoing this role along doing others. Which can cause you to pay for that person’s money as they’re experiencing more duties or to specialize in this role. Softwares like DanfeBooks only charge an affordable monthly fee, often cheaper and taking less time to pay someone to perform this hourly role. So as a business, it saves you time and money paying someone to calculate payroll.

It’s More Secure

If you are using a paper trail, you have the risk of someone breaking in and stealing all of your paper records. Likewise, if you don’t shred your paper, someone else may find confidential details of your accounts at a later date. If you use cloud-based software, i.e., this one, it’s tough to access your data.

All of DanfeBook's client accounts are stored with up to date encryption technology with multi-national cloud service providers. Using a trusted international cloud allows for high availability, never a downtime, and default encryption applied to all data stored, which even we as a company can’t access. Only users of this software can access if they have their credentials. Better Decisions

Whether you’re an employee or an employer, the data is all there on the screen. This allows you to review and interpret data quicker, allowing better decisions and new ones to be formed. It will enable your company to address the HR basics, without missing out on the essentials.

Have we convinced you yet, why payroll is essential? Especially why you should convert your payroll system from a paper trail to a digitized one? Click here to try out DanfeBooks.