Choosing the best payroll system for your small and medium-sized business (SMB) is vital to building trust, maintaining high staff morale and supporting the ongoing growth of your team.
Implementing a best practice payroll software system ensures your people are being paid on time, every time. Investing in the right payroll system for your business can also offer a range of benefits.
It will help you to eliminate human error and ensure payment accuracy, easily scale up as you hire new employees, boost productivity with automated workflows, and maintain compliance with automatic tax and legislation updates.
However, to attain these benefits, you must first set up an effective payroll system.
That means deciding whether you will outsource your payroll system or manage it internally, populating the system with your employee information, selecting the best payment method and frequency, and setting payroll reminders and deadlines so your people are always paid on time.
But even the most thorough implementation will fall flat if you’ve chosen the wrong payroll system for your business – and the benefits will quickly evaporate.
Here are five tips to ensure you select the best payroll system for your SMB.
- Consider the benefits of the cloud
Cloud-based payroll management systems are accessible from any device with an internet connection. That’s particularly useful if you employ a mobile workforce, maintain offices across several locations or run a remote payroll team. Many cloud-based systems also allow you to scale up as you grow, which means you only pay for the functionality you’re currently using.
- Know your must-haves
Before comparing the many payroll software systems on the market, identify the features that are absolutely necessary for your SMB. For example, if your employees are on variable pay, automated payment calculations may save your payroll team considerable time. However, if your employees all receive fixed salaries, automated payment calculations may be an added expense that’s irrelevant for your business.
- Ensure compatibility
To be most effective, your payroll software should integrate seamlessly with your legacy systems. When selecting payroll software, do your homework to ensure it is compatible with your existing accounting software as well as any other software you use to manage leave requests or other staffing issues.
- Assess implementation
When you implement a new payroll system, you’ll likely need to transfer the data from your existing system. Ensure the new payroll system you select supports data transfer from your existing system. Also ascertain the level of implementation support that is offered by your new provider.
- Evaluate reporting
Most payroll software systems offer reporting functionality that will provide key insights into the performance of your business. Evaluate the reporting functionality of each software, and note those that allow you to customise reports to suit the needs of your business.
Selecting the best payroll system for your SMB builds trust within your team and lets your employees know that they matter to your business, thereby boosting morale and productivity. Make the right choice by assessing each payroll software system against your business’s specific needs to find the right fit for you.