When everything is in order with the payroll, everything is in order with the world. However, it is a source of great stress when something goes wrong. Even if you’re happy with your current payroll system, chances are you’re missing out on the benefits that will make the process easier and reduce errors with new payroll software.
It’s easy to get tethered to your systems and software, making it hard to consider change, especially in vital and potentially volatile areas like payroll. The key is to make an informed choice, whether that means sticking with what you know or getting upgraded. There are things you can look for that tell you it’s time for something new.
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1. Answer the question why
Why should you even consider a new payroll system? The first step is to evaluate your current software and ask yourself some questions. For example, does your current service provider charge a run fee? Are you experiencing repeated errors with federal, state or local taxes when calculating payroll?
Perhaps the goal is to free up time so you can focus on other aspects of your business. For example, do you spend several hours each month recruiting new employees or answering requests for tax documents? Many small business payroll software providers offer self-service portals so employees can easily manage these types of tasks with just a few clicks—at any time of the day.
With so many different companies on the market, you might just be curious to know what’s out there and how they can save you time and money. There’s nothing wrong with exploring your options, and if you’re thinking about making the switch, you’ve got no shortage of top-notch software solutions at your fingertips.
2. You do it the old way
If your payroll consists of spreadsheets and paper checks, it’s time to move into the 21st century. You don’t have to worry about processing numbers, entering data, or calculating time cards with the right payroll system.
Trying to manage your payroll manually costs you time, on top of just writing checks. You also have to deal with the accounting side of the payroll process.
Manual payroll also costs you consumables. You need paper checks to print and printer ink. The amount of time, effort and money you put into it can be spent growing your business.
The payroll system will do the calculations and manage the funds for you. Payments are usually electronic, which benefits both you and your employees, whether you have two hundred or two hundred.
An old-school salary can also affect your ability to receive funding. Any small mistake in the numbers can affect the decision to give you a business loan, for example, or the interest rate.
3. You are not in the cloud
Cloud-based payroll solutions mean you can access the system anytime, anywhere. A cloud-based payroll system also makes it easy to manage remote employees or manage business expenses on the go.
Cloud systems ensure that you keep payroll records for as long as necessary. Even in the event of a natural disaster, your payrolls will be safe and accessible. You also don’t have to worry about backing them up to a separate drive for safety in case your computer crashes. Everything is securely stored for you.
4. You need new features
The problem with a software system you know and love is that it may not grow with you. As your business expands, you may have new payroll needs that the old system couldn’t handle. There is no reason to try to fit a square peg into a round hole. An updated payroll system will most likely have what you need.
5. The system is changing
Software tends to evolve. If you’re struggling to keep up with the current changes in the payroll system, then perhaps start over with someone new and easier to follow. Few things are more annoying than a complicated interface. Another system may have an interface designed more for your needs.
6. You use more than one system
Perhaps back when you first turned to an automated payroll system, you needed more than one to get all the features you need to run your business. Switching to a new program may allow you to consolidate your payroll into yet another comprehensive software package. This will save you both time and money.
7. You updated other systems
If you have recently upgraded other systems in your network, such as HR or finance, they may not interact with the old payroll program. You may need to make changes to get the network back in sync. A centralized network is critical to keeping numbers accurate and reducing errors.
8. Your employees deserve better.
Accurate and timely payroll is the foundation of your relationship with your employees. If this does not happen, it affects morale and their work environment. Investment in a new and improved payroll system is more affordable than hiring new staff. Just watching how you respond to complaints will go a long way towards ending friction and showing your employees that you are protecting them.
It is very important that you also protect your employee’s information. An older system may not have modern security features, putting you and your employees at risk of data theft.
Change is difficult, but necessary for growth. This is true in most things and definitely in the business world. So consider what you’re getting from your old payroll system and whether it’s time to upgrade.
