So your business is on the ball, with payroll software already in place. But does it allow your team to handle the process with maximum efficiency? If you’re unsure, or simply haven’t thought about it for a while, it may be a good time to explore what else is out there. 

From the questions you should be asking during this search right through to finding a compliance-friendly solution, this article offers tips to help you choose the right payroll system for your business. 

How to Choose the Right Payroll System

If you’re spending most of your time and energy developing your brand — as is the case for most business owners — the last thing you want to worry about is spending hours trying to find a new payroll system. The following considerations will help to streamline the process. 

Start with a few basic questions

To know what you’re looking for in a payroll system, take stock of the current needs of the business first. Doing so helps with gaining clarity, making it easier to whittle down your options later. Consider the following questions:

• How many users work with the software now? This helps to get a sense of the types of packages you should be considering. Most options will be priced by number of users or frequency of use. 

• Is the software used across one company or more? If you’re using it for multiple companies, you will need to find a software that is licensed for this. 
• How many employees are on the payroll every month? Some providers may cap this number in a bid to entice you to upgrade your package. If you’re growing the team over the next 12 months, account for this as well. 

• What types of payslips do you use? Consider how these are delivered every month, double checking that the providers on your shortlist can accommodate for this. 

 

Decide how deep you want to go

Payroll systems come in an array of different packages, each of which boasts its own share of unique features. Depending on your answers to the questions earlier, you may require either a low or high level of analysis of payroll costs. Decide upfront how deep you want (or need) to go in terms of features and access to analytics.

From there, settle on a budget range you’re comfortable with. Don’t be scared to spend a little bit more, in order to tick all the boxes. Your shortlist of options should be starting to get a lot shorter by now. 

 

Evaluate the potential for third-party integration

A reputable payroll software provider will see integration with third-party programmes as essential to automating as much of the process as possible. Providers like QuickBooks have long championed this in a bid to stop users from having to manually import data from unsupported sources every month. 

Check in with your potential new provider about whether they offer third-party integration, and specifically which programmes are compatible with their software. Ideally, data will flow naturally from a variety of avenues, ready to be drawn together in a compact document every time you need to pull up a report. 

 

Choose a software that is regularly updated

Things have a tendency to change rapidly in the modern working world, so your new provider should be updating its software as often as possible. This should be done in a bid to keep up with technological advancements, but more importantly, should adapt to changes in compliance as well. 

Keeping track of pension scheme changes (for example) can be tedious, or worse – lead to mistakes generating financial penalties down the line. Although there are plenty of resources available to manage business compliance on your own, it does make life easier if your payroll system provider already considers this as part of their offering. 

 

With these tips in mind, you’re ready to start exploring the best payroll system for your business. Some providers offer an option to “try before you buy”, which is ideal if you’re not under any time pressure to make the switch. You’ll be able to make a thorough evaluation about whether it is a good fit long before you have to sign on the dotted line. With this in place, it won’t be long before monthly payroll is seamless every time.