Welcome, this blog is to show the important facts that must be considered while opting for any of the payroll software regardless of the size of your business or the type of business.
Making a correct choice of payroll system is important as a single choice can either make or break your business processes. There are plenty of options in the market and multiple sorting options too, but you need to recognize what you wish to have before shortlisting any of the options. You must try to make a list of key features and factors that are important to your organizations and make sure to conduct thorough research before making any final decisions.
Try to talk to other business owners and read the reviews provided by others to have a high-level overview of what can be expected from any specific payroll software. As you research to get a software meeting your requirements, you need to consider the following points.
- Size of your business unit
- The paying frequency of organization
- Priority of the security
- Requirement of integrations
- Priority of mobiles
Let us understand the above points in detail.
Size of your business unit
- The size of the organization plays a major role in deciding the type of payroll software to be opted for. For instance, there may be a payroll system that may be better geared towards smaller businesses and there are few other payroll management systems that are designed for large corporations. Small businesses and startups must opt for platforms that have simple and intuitive features while the bigger enterprises might wish to have robust software with customized options.
- Moreover, small enterprises and startups are prone to errors when it comes to opting for the best payroll software. The research of IRS found that 40% of the small businesses make mistakes while opting for payroll software for small businesses that end up costing them money. Also, it is more time-consuming. Keeping this in mind, small businesses must consider lean in the direction of payroll services Vs payroll software.
The paying frequency of organization
- One of the first questions you need to ask yourself as an owner is how often you will need to pay your employees. For small brick-and-mortar businesses like coffee shops or a café, you might need to be straightforward. For such businesses, you might have a handful of part-time employees that may help to keep the shop running. However, being a remote eCommerce platform, you might have a full-time person, a few virtual assistants, and also a few infrequent independent contractors and freelancers. You need to analyze your type of case and take a look over different payroll packages that cater to the type of payment frequencies and you wish to have in the software.
Priority of security
- The payroll system software hosts a lot of important data including social security numbers, addresses, bank account information, and much more. As a result, any breach in the data can damage the entire system of your business. While searching for payroll management software for your business, you must pay proper attention to the prioritization of strong encryption. In modern times digital security is more important than ever and as per facts on average around 2,30,000 new malware samples are launched every single day. The best payroll software for small businesses has several features that make security sync.
- You even need a platform that protects your business against occupational fraud. Occupational fraud can be defined as fraud committed by any employee during the tenure. Reports show that in 2014, payroll fraud comprised 10.2% of the occupational fraud cases, costing the loss of roughly $50,000 every year to the companies. One can opt for a combination of security awareness training, strict user permissions, and regular audits to combat different types of fraud from both internal as well as external problems.
Requirement of integrations
- Some of the top payroll software makes it easy to integrate with different accounting packages hence if the current setup includes third-party spreadsheets or other pieces of software, you need to integrate everything. For instance, if you wish to connect it with the human resource management software, you must have a proper integration facility. Otherwise, you may end up keeping the human resource platform separate and increase the risk of errors.
- Ideally, with every update in the employee information in the HR platform, the same changes must be applied to the payroll system too. On the other hand, you might already have an HR system offering payroll capabilities. If such is a case then you might need to have an in-depth look into whether those features are sufficient enough for the business operations.
Priority of mobiles
- If you plan to manage the payroll software from different locations or have an offsite payroll manager, mobile payroll management would be the best set for you. Fortunately, there are multiple options such as simple payroll software, cloud payroll system, mobile payroll software, and much more.
- Even if you don’t prioritize the mobile payroll, there are much more benefits of cloud systems. For instance, cloud payroll software is much more scalable meaning that it can grow as much as your business grows. Regardless of the new hires brought to the business, cloud software can adjust to everything. Because of this, you spend money only on the required resources and hence wastage is reduced.
Now you are aware of what to take into consideration while opting for the best payroll for small businesses, make sure you don’t miss any of these above listed points and also take care of a few of other major points depending on your requirements. Try to analyze the offerings of different payroll software providers, sort them and compare them with the top options and decide one of the best payroll systems for small business. Never miss a chance to make the correct decision for your business.