Choosing the Right Payroll Software: 8 Key Considerations for Small Business Owners
The responsibilities of owning a small business can be overwhelming. Along with managing your day-to-day operations, you must also deal with payroll, taxes, and compliance. Thanks to the payroll automation system, you no longer have to worry about payroll.
Given the many options available, how do you decide which option is best for your business? When choosing payroll software for your small business, consider eight key factors.
Payroll Software: What Is It?
Payroll software is a local or cloud-based service that keeps track of employee pay and benefits. Robust, integrated, and adequately configured payroll software can aid organisations of all sizes in adhering to tax and other financial regulations and lowering expenses. With payroll processing apps, businesses can save time and money while ensuring accuracy in their payroll operations. This software allows human resources teams to devote more time to strategic budgeting, planning, and other business-forward initiatives.
Types of payroll systems:
- Software: Like an online payroll service, payroll software needs you to enter all the information. The software has automated features that save you more time than doing everything through an online service. However, you must update the software and double-check its results to ensure everything runs smoothly.
- Online payroll: If you choose to handle your own payroll, numerous online services are available. This option will save you money but requires more time because you will input all the data and process the payroll yourself.
- Bookkeepers: A bookkeeper is a person who maintains your financial records and accounts. This option is available to small enterprises with a few employees. Your bookkeeper can either be an employee of your business or one of their many clients.
- In-house: If you have a big company with many workers, you might want to hire an accounting department to handle your payroll. Your accounting team will know everything there is to know about your business and its culture, so they’ll be ready to grow and change as your business does. They are also prepared immediately in case of an emergency or a change at the last minute.
Now it’s up to you which types of payroll you want to use in your company. Do you want in-house or software? Do you want to be a bookkeeper or do online payroll? If you ever want to have automated payroll software, you need to keep some considerations in mind.
Considerations for Small-Business Payroll Software
When evaluating payroll software, you should consider how the functions and customer service will change as your business grows and moves forward. Here are eight things you should consider when choosing your payroll software. When you have good software, it will have a significant impact on the present and future of your business.
1. High Level of Security
You should look for payroll software that does more than just automate payroll and taxes. It should also help keep your business and employee information safe and secure. When viewing highly sensitive employee data, keep an eye on the software’s security measures. Also, check to see if the system has safeguards to help you spot risks and strange behaviour in the account.
2. An Efficient Payroll Processing System and Accurate Tax Calculations
The most important thing is to have a payroll automation system that can figure out things like CPP and EI taxes, bonuses, holiday pay, overtime, etc. Find out more about the product and ask the right questions about possible vendors to help you meet your government filing and remittance obligations.
Can the salary system automatically change the tax rates and tax forms? Does it automatically send Records of Employment (ROE) to Service Canada and pay income taxes in your province? It’s also important to pick an option that makes it easy to send money to third parties, like benefits, RRSPs, etc. Look for a method that makes it easy for you to set up your income, deductions, taxes, and changes.
Since the compliance landscape seems to change daily, you’ll also need to find a system to help you track changes. It’s important to have payroll software that can adapt to changes in the law. Still, you should also look for a payroll service system that goes above and beyond to keep you up-to-date, like one that offers an info centre with information on different software updates.
3. Proven Expertise
You must ask the appropriate questions to ensure that you work with an experienced partner, not just a service provider. Ask various vendors for examples of how they have assisted other businesses with your particular challenges. In addition, it will be essential to determine their level of expertise in helping businesses with expansion. Check if their payroll software is designed to accommodate exponential growth or if you need help adding new employees and calculating payroll in different regions.
4. Capabilities for Payroll Reporting
The proper reporting capabilities will help you and your team make quicker, more intelligent business decisions. Payroll software with data analysis and reporting features will allow you to obtain valuable business insights without spending countless hours managing dashboards.
For instance, it can access payroll and year-end reports from the prior year and archived reports from prior years. Inquire with vendors if their systems include pre-built payroll, year-end reports, and advanced reporting capabilities.
5. Employee Self-Service
Employees desire the ability to access their information anywhere and in real-time. Consider a payroll partner with a mobile solution that enables employees to view and manage their pay, personal information, and other details.
A solution with self-service capabilities can also help you or your HR team reduce administrative work. In addition, you should search for mobile payroll processing capabilities to give administrators the tools they need to make changes on the go.
If you want your business to succeed, you need a solution and a partner that is as flexible as you do. If your company’s requirements change, how simple is it to implement new features? Inquire with potential providers about the system’s adaptability to frequent personnel roles, work locations, and compensation shifts.
7. Processes That Are Efficient in Implementation
It will be essential to receive guidance after signing on with a new payroll provider for a successful launch. Providers should tell you how long implementation will take and their implementation process. Can you get set up with the help of a dedicated person?
Additionally, some payroll providers offer resources such as pre-implementation checklists to assist your team in preparing for a seamless implementation.
8. Strong Customer Support
When using a system services payroll, it’s important to know that you don’t have to figure things out alone. A strong partner could help your in-house payroll team solve problems that keep workers from getting paid on time and correctly.
You should look for providers who can help you with everything. What kinds of help are available, and what kind of ongoing help will you get? Will you be put in touch with a team of reps who know what a CPA has trained your business needs? What are the different help communication options (phone, email, support inquiries, etc.)?
Customers can get assistance from payment services by phone or live chat. Consider how well you will likely be handled as a customer while deciding.
After all, managing the payroll for your company is one of the most crucial tasks you’ll be responsible for. It is vital to locate the software that is most suitable for your demands as well as the needs of your company. When you begin your search, you should have a solid understanding of what to look for, thanks to the considerations presented to you so far. You should now be ready to search for suitable payroll software for your company. Good luck!