Here’s what accountants and outsourced payroll providers should consider when choosing a payroll software:
→ Scalability and flexibility – Ensure the software can handle the varying needs of your clients, whether you’re dealing with small businesses or larger enterprises. It should be scalable to accommodate changes in the number of employees or clients you’re managing.
→ Compliance and tax regulations – Your payroll software should constantly stay up-to-date with the latest payroll and tax laws and regulations in your region. This will lift a huge burden off your shoulders because you no longer need to worry about compliance — they’ve got you covered.
→ Automation features – Look for software that enables you to automate tasks such as payroll and tax calculations, report generation and more. Leveraging on automation reduces the chance of human error and saves you so much time.
→ Integration capabilities – Choose software that can integrate with other accounting and HR systems that you or your clients might be using. This streamlines data sharing and minimises duplicate data entry.
→ User-friendly interface – A user-friendly (and mobile-friendly) interface is essential, especially if multiple employees and clients will be using the software. Intuitive navigation and clear layouts can help to reduce the training time needed, and speed up the implementations process.
→ Security and data privacy – Payroll involves sensitive financial and personal information. Make sure the software employs strong security measures, like encryption and multi-factor authentication, to protect this data.
→ Customer support and training – Check if the software provider offers reliable customer support and extensive training resources. A dedicated support team can help to assist you quickly when issues arise or when you need guidance. This is crucial in maintaining client satisfaction.
→ Customisation options – Each client might have specific payroll requirements. A software that allows the customisation of pay structures, deductions, and benefits can better accommodate these unique needs.
→ Reporting functionality – Robust reporting capabilities help to generate essential financial reports, payslips, and tax documents. Make sure the software can generate the reports you and your clients require for statutory reporting. These reports will also provide you with invaluable insights you can use to better advise your clients.
→ Cost considerations – Compare the software’s pricing structure and ensure it aligns with your budget. Some software providers offer tiered pricing based on the number of employees or clients you onboard.
→ Cloud-based accessibility – Cloud-based software allows you and your clients to access payroll data from anywhere, which can be particularly helpful for remote work scenarios or flexible work arrangements. It facilitates efficiency and everything can be accessed either via desktop or mobile.
→ Reviews and recommendations – Research online reviews and seek recommendations from fellow accountants and payroll providers who have experience with using the software. Their insights can be invaluable in helping you make an informed decision.
→ Upgrades and future developments – Check if the software provider regularly updates the software with new features, legislative changes, and improvements. This ensures that the software you use will stay relevant in the long term, plus you get more bang for your buck with an ever-growing suite of features.
→ Data migration – If you’re transitioning from an existing system, enquire about the ease of data migration and what it will entail. What are the steps required, the resources needed, and the estimated timeline for it? A smooth transition can save time and reduce disruptions.