If you are planning to invest in payroll software for your company, then it's important to make sure that you are making the right decision. Payroll software can be extremely useful, but it might not be the best fit in every case. Here are seven questions to ask yourself when deciding whether to invest in payroll software or not. Keep these considerations in mind when deciding how to invest in payroll software so that you know if this option is right for your business or not!
1) Will this software improve efficiency?
Have you explored other options? While it's easy to think that your business is so unique that no other software could help, there are actually tons of great payroll services available. Make sure you do your research before committing too much of your valuable time and money into a specific product or service. That said, there are good reasons to invest in payroll software. If you anticipate growth, want more control over how much employees can view their earnings online or need multiple location management, it may be worth exploring what's available to streamline these processes.
2) Is it compatible with my existing systems?
Unless you're planning on revamping your entire payroll process, chances are good that some of your internal systems will need to interact with whatever payroll system you buy. Make sure it can work with what you already have. If not, that's more time and money down the drain. Even if there are some fees associated with switching over, it may be worth investing some additional time at first so things don't become a hassle later on.
3) Does the solution provide stability and support?
It's important that any software you invest in is reliable and has built-in support options. If your company suffers a data breach or accidentally deletes payroll information, you don't want to have to wait days or weeks for your provider to help resolve it. You need fast support when dealing with payroll issues because every hour lost may cost you thousands of dollars-both for employees who aren't getting paid on time and for accounting costs. No one wants their paychecks disrupted, so it's important that your payroll solution provides high levels of stability, security, and support.
4) How much am I willing to spend on this payroll software?
If you are trying to decide how much you are willing to spend on a piece of payroll software, there are some factors that will help you narrow down your price range. You need to ask yourself if there is software available for free, or if free alternatives will suffice? If not, what about entry-level-priced solutions? Will they suit your needs or can you wait until they upgrade their features? Once you've determined your budget, set aside a list of features that are absolutely must-haves for your business. Having an idea of what makes one option better than another can be helpful when looking at different prices. Once you've found one that fits your requirements, double-check for additional fees associated with extra features or add-ons.
5) Do I want on-site or cloud access?
Payroll services often offer a few different options. With on-site software, a cloud-based system is installed on your own servers. It's an attractive option if you plan to build out your payroll function as part of a bigger human resources department and need increased capabilities down the line. For smaller organizations that only need basic payroll services, investing in a cloud service might be more convenient-particularly if you want to use it from anywhere with internet access. On-site software might require an IT team, but cloud systems generally don't. Also consider cost: The initial investment for both options is generally comparable, but ongoing maintenance costs tend to be lower with a software as a service (SaaS) system versus on-site solutions.
6) Does the system allow me to add new employees at any time?
If you have a few employees but aren't sure how many you'll have in the future, it makes sense to invest in software that lets you add new employees at any time. This will save you from having to re-jig your payroll package when your team expands or shrinks. Can I switch my payroll provider?: Another consideration is being able to switch your payroll provider if there are major issues with performance or support. Payroll providers can range from specialist regional firms to large international companies, so it's important that you choose one that won't leave you out of pocket should they become insolvent or go bust. Will they back up my data?: Data backups are essential for safeguarding against hard drive failures and accidental deletions.
7) Do I need training?
The more complicated your payroll system is, or if you're hiring employees for whom English isn't their first language, it might be worth investing in training. You can also save money on software by purchasing it through your payroll provider-just make sure that they are equipped to answer questions before you purchase. Some providers charge a monthly fee or require ongoing payments for ongoing support and maintenance; others don't. If you go with a pay-as-you-go service and decide later that your needs have changed, getting help with your current setup might be difficult. Make sure you know what kind of ongoing support is available before signing on with any provider.