A Business Owner’s Guide to Choosing the Right Payroll Software

Managing a business is already a circus- act- deadlines, clients, invoices and now payroll? And if you have ever been up at 2 AM, searching best payroll software on google, with a cup of cold coffee in your hand, then you are not the only one. All entrepreneurs reach the stage when keeping track of salaries and deductions, tax returns and timesheets is more of a mess than a process. Then how do you choose the appropriate payroll software without losing your hair?

Now, let us be realistic a moment. All payroll solutions are not the same. There are those that manage small teams and there are those that manage companies of 100 employees or more. Some do everything automated; others leave you wandering in a wilderness of spreadsheets. And when dozens of options are floating around, the choice can be overwhelming.

Start with Your Business Needs

And before you know it, take a step back before comparing or trying the free trial. Ask yourself:

• What is the number of employees that I have?
• Should I have direct deposit?
• What of payments to contractors?
• Do I have hourly pay rates or salaried workers or both?

This self check will eliminate some software that is incompatible with your system. To give an illustration, when you are a solo entrepreneur and have a part time VA, then a full featured enterprise grade system will simply be an overkill.

And do not forget about the future growth. Scaling your team in the new year? Then choose something that can grow with you, not something you’ll outgrow in six months.

Ease of Use Should Not Be Underestimated

We have all used that single software which appears fantastic on the home page and then turns into a puzzling disaster. With regards to payroll, intuitive interfaces are revolutionary. You do not wish to waste hour after hour learning how to operate a dashboard when you should be attending to your real business.

Ask Yourself
Will I be required to train somebody to use this? Or do I have a chance to get it in several clicks?

Seek a system that is well-designed, has streamlined work processes, and has uncomplicated reporting. Even better, select platforms that have a demo version or a 14 day free trial and kick the tires.

Considerations Integrations

Already on accounting softwares such as QuickBooks or Xero? perhaps a time-tracker such as Toggl or Hubstaff? Your payroll software must be well behaved within the rest of your tech stack.

The lesser the manual entries you are required to make the better. Integrations save time and reduce errors and provide you with a fuller view of the finances in your business. Not to mention: it simplifies end of year tax filings to a great degree.

Let’s Talk About Cost

And what about the money question, ah yes. You have to be sure you are receiving the best deal without overspending your budget. This is where payroll pricing becomes a major deciding factor.

What Then Should You Expect?

The majority of the platforms take a flat monthly rate, a per employee rate, or both. For example, you might see pricing like “$30/month + $6 per employee.” There is even some software that has pay as you go plans which is excellent if you are a freelancer or a seasonal business.

However, here is the twist, the lowest cost is not necessarily the best. Make sure you check what’s included in the base price. Other providers will nickel and dime you with tax filings, end of year forms or even access to support.

Do not want any surprises in the future? It is written in small print. Read it then read it again. And hey, while you’re comparing payroll pricing, don’t forget to factor in hidden costs like setup fees or data migration charges. These extras can creep up on you when you are not looking.

Customer Support Should Not Be Neglected

Have you ever had a problem with software, and not been able to talk to a human being in days? No laugher particularly when the pay day is in sight.

A good customer support is non-negotiable. Seek out platforms that offer several contact methods: live chat, email, phone support, and knowledge base that is beneficial. Bonus points if they have real time support during business hours (or even better, 24/7).

In addition, look at user reviews. That is where you will find candid information on whether the support staff is useful… or simply missing in action.

Security and Compliance Is a Bigger Deal Than You Think

Payroll data is sensitive data bank information, tax IDs, salaries. You cannot afford data breach.

Select a provider which cares about security. Such features as data encryption, two factor authentication, and safe cloud-backups are essential. And if you’re in a region with specific compliance rules (like GDPR or IRS reporting), make sure your software ticks all the right boxes.

Final Thoughts

When all is said and done, using the correct payroll software ought to be like having an ally not another hassle. It ought to save you time, stress less plus assist you in operating your business more smoothly.

Still unsure? Make use of free trials, demo videos and speak with other business owners. Above all, select what suits your workflow, not only what looks most bell and whistle.

As in life, straightforward and functional is always better than complicated and exasperating in the business world.