September 2, 2021

How To Choose The Right Payroll Software For Your Business

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Let’s be honest: Payroll isn’t the most enjoyable part of running a business. In fact, it can be quite an administrative headache.

It typically involves a plethora of spreadsheets, chasing up staff, and flicking between different applications (snooze!). Your team might complain about navigating the complicated systems you’ve been using for years, or maybe you already know there’s a better option out there – you just need to find it.

Either way, choosing new payroll software is a big decision. You have to ensure it’s worth the investment, has all the features you need, and makes life easier (not harder) for your employees. But with so many choices out there, how do you pick the right one?

10 tips for choosing the right payroll software for your business

In today’s blog, we’re going to give you our top 10 tips for choosing the right payroll software for your business. You’ll learn how to weigh up your options and what to look out for so you can make an informed decision – just keep reading!

1. Outline your goals

What does investing in new payroll software need to achieve for you, in broader terms? Are you looking to increase company profits with a more efficient payroll process, expand your payroll offering to more clients, or simply keep your team happy?

Understanding your long-term strategy will help you evaluate what payroll software options will help you achieve your objectives.

2. Talk to your employees

If you don’t run the payroll yourself, make sure you get feedback from the employees who will actually use the software. They’ll definitely help you make a decision!

Send out a quick survey or hold a group meeting to see what your employees dislike about your current payroll software or processes and what would make their jobs easier? You might be surprised by what you learn.

3. Size up your company

Some companies design software for massive corporations with thousands of employees and clients, while others are more suitable for small companies with 10 employees.

There’s no point paying for a higher-end system that you won’t get the full benefit of. Evaluating how many users will use the new software in your company and how many clients’ accounts it needs to hold will help you choose an option fitted for your size.

4. List your non-negotiables

Knowing what you can’t do without is always a good start. So, first things first, you need to get clear on what features are absolutely essential and what are your ‘nice to haves’.

Do you need your payroll software to have a mobile app for employee time tracking? Excellent reporting dashboards? Check out these features below, for examples of what to look for. Do you need all or some of them?

  • Automated payroll – some software options automatically pull in masses of data like leave and attendance, salaries, holiday pay, etc., so you don’t spend hours manually calculating payments.
  • Compliance reporting – you might be looking for a system that adheres to compliance laws and calculates the correct tax to ensure your payroll is above board.
  • Flexible payments – if your staff are all on different contracts and salary grades, you’ll want a system that allows you to adjust these and create templates easily.
  • Employee apps – if you’re managing many employees, you can have them update their time logs and even confirm their location with mobile apps.
  • Cloud security – more and more companies are switching to cloud payroll software since it’s agile and safely stores your data. But with that data, you need top-level security to keep it safe.
  • User roles and permissions – for most companies, multiple departments might need to access the payroll software. Make sure your chosen option allows different users to log in and limits what data each user has access to.

5. Read reviews

TrustRadius and Capterra are your best friends here for comparison of customer ratings and testimonials. Don’t forget Facebook and Google reviews too.

Seeing how others evaluate different payroll software options can help you compare pricing and features. Any company with half a brain will only add good testimonials to their website, so make sure to do some digging yourself.

6. See if it integrates with your other systems

This step often gets overlooked. Not only do you want to make sure your payroll software can integrate with your other accounting systems, staff timesheet systems, compliance procedures etc., you also need to evaluate how easy it is to integrate.

Do you need help from the provider, or can you do it yourself? Is it easy to customise and adjust? These are things you should consider before going ahead.

7. Research potential hidden costs

For software that’s built to make payments easier, their pricing structures aren’t always the easiest to follow. Many payroll software providers set out their pricing in tiers which can be confusing.

Most of them will charge you a license fee, and some even charge an installation fee. Before signing on the dotted line, make sure you have full transparency on their costs and know exactly what you’ll be charged for.

8. Is it user-friendly? See for yourself

Get a clear idea of the training your employees will need to feel comfortable using the new system. Begin with evaluating whether the system is user-friendly.

Most payroll software companies will offer either a free demo or a free trial. Take advantage of this so you can see how easy it is to use.

9. Check out their support options

When there’s an issue with your payroll software, not only will you encounter disgruntled employees, you could also lose clients if payroll runs aren’t sent on time.

Take the time to evaluate their support options properly. For a small business, perhaps you’re happy with their email support options. For a larger business, you might need 24/7 phone support.

See how much it costs and whether the level of support is good enough. (Also, don’t forget to check out their reviews, if there’s ever an issue with support – you’ll find it here!)

10. Try Solutio!

Solutio is a cloud-based payroll software that offers businesses a hassle-free way to manage payroll. Our innovative, all-in-one solution means no more multiple platforms for payroll processing, timesheet logging, or compliance.

Solutio lets you automate time-consuming tasks and complete payroll – without the headaches. Our pricing is uncomplicated. Just a small monthly fee with no hidden costs.

Get instant access to our one-click payroll, detailed analytics and reporting, and fully compliant payslips by signing up today. Book your free demo.