Choosing the right payroll software

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A comprehensive guide for accountants and payroll professionals

Choosing the right payroll software may not sound like the most thrilling task, but trust us, it’s the key to achieving efficiency, accuracy and compliance with payroll processes, not to mention the secret sauce to transforming your payroll service into a profitable venture.

Picture this: you’re the hero of your organisation, armed with the ultimate payroll software that’s like a trusty sidekick, always there to save the day. But with so many options out there, how do you find the perfect match for your needs? Fear not, intrepid accountants and payroll professionals, for we’ve created this comprehensive guide to help you navigate the exciting realm of payroll software selection.

But before we explore the nitty-gritty, here’s a challenge for you: as you peruse this guide, ask yourself a simple question – does your existing software offer these features?

Key features and considerations to keep in mind when selecting payroll software

  1. Fully cloud-based and all-device compatibility

    One of the most significant advancements in payroll software is the shift to cloud-based solutions. Cloud-based payroll software offers unparalleled flexibility and accessibility, allowing users to access payroll data from anywhere, at any time, and on any device, including Macs. This ensures that payroll professionals can perform their duties efficiently, whether they are in the office, at home, or on the go.

    1. Flexible pricing structure

    When evaluating payroll software options, it’s essential to consider the pricing structure and the length of contract. Look for software that is priced by the employer with no subscription tie-ins. This ensures that you only pay for the features and services you need, without being locked into long-term contracts or commitments.

    1. Automated calculations

    Payroll processing involves a myriad of calculations, including those for mid-period starters and leavers, mid-period pay rises, and unpaid leave. The ideal payroll software should automate these calculations, eliminating the risk of errors and ensuring compliance with relevant regulations and legislation.

    1. One-click automation

    Time is of the essence in payroll processing, which is why automation is key.  Look for payroll software that offers one-click automation for tasks such as sending payslips, HMRC returns, and pension contributions. This streamlines the payroll process, saving time and reducing the likelihood of errors.

    1. Full integrations with accounting software and payment systems

    For optimal efficiency and accuracy, payroll software should seamlessly integrate with accounting software and payment systems, ensuring that all payroll data is properly synchronised. This includes information sent over to the software like the Employers NIC Allowance, setting both tracking categories for Xero integrations, and customising payroll journal references in QBO. Such integration eliminates the need for manual data entry, significantly reducing the risk of discrepancies and streamlining your workflow.

    1. Employee and Employer Portals

    Employee and employer portals are invaluable tools for enhancing communication and collaboration within an organisation. Choose payroll software that includes built-in portals, allowing employees to access their pay information, and communicate with payroll administrators. Similarly, employer portals should enable payroll professionals to amend data and approve payrolls, send messages, and access relevant payroll data.

    1. Automatic Director Pay

    Select payroll software that offers automatic director pay functionality, allowing you to set it up once and let the software handle the rest. This ensures a streamlined, accurate, and compliant payroll process for your directors, significantly enhancing the overall efficiency of your payroll operations.

    1. Unlimited user permissions

    Look for software that offers unlimited user permissions, with variable access levels to ensure data security and compliance. This setup allows junior staff to make necessary payroll amendments, while senior personnel can lock the payroll before submission for approval. Additionally, it ensures that certain payrolls remain confidential and inaccessible to specific team members.

           9. CIS and P11D compliance

    If your business operates in industries subject to Construction Industry Scheme (CIS) regulations or requires the submission of P11D forms for employee benefits, ensure that your payroll software includes these features as standard, with no additional cost. This ensures compliance with relevant regulations and reduces the administrative burden associated with these processes.

    10. Bureau workflow dashboard

    For payroll professionals managing multiple clients, a bureau workflow dashboard is indispensable. Opt for payroll software that includes a bureau workflow dashboard, allowing you to easily manage and track payroll tasks across multiple clients, ensuring efficiency and accuracy as well as enabling you to effectively manage your team and the volume of work assigned to them, optimising overall productivity.

    Choosing the right payroll software

    Choosing the right payroll software is crucial for accountants and payroll professionals tasked with managing payroll processes. By considering key features such as cloud-based accessibility, automation capabilities, integration with other systems, and compliance with regulations, you can select payroll software that meets your organisation’s needs and facilitates efficient and accurate payroll processing.

    So, does your payroll software offer all these features? If not, look no further – FreshPay offers ALL of them. With FreshPay, you can streamline your payroll operations and drive success.

    Book a demo or register for a free trial

    For more information about FreshPay, book a demo or register for a free trial here:

    Sign up by the end of this month and receive 50% off the first 3 months. Quote: AAT50

    This content is brought to you by FreshPay.

    Fresh Pay is an automated fully cloud payroll software designed by payroll professionals to streamline your payroll processes and make your business more money.

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