The finance function of starting any business is always a weighty discussion to have, especially when considering payroll services. In recent years many businesses have overhauled their payroll systems as they fail to meet the new standard of payroll. Whether you are considering making a switch to an outsourced provider or migrating to an online, cloud payroll system – there are considerations to be made in choosing a payroll system.
Here are 6 things that you may want to consider before changing payroll systems.
1. What payroll support can you expect?
If your new payroll function is going to replace a physical payroll professional or department, you will want to know what sort of payroll support is available. In the event that a mistake is made or a last-minute pay or deduction amendment is needed, what is the process for communicating that?
Additionally, how will your new payroll provider query any of your payroll reporting or flag concerns? This is an important consideration when choosing a payroll system to make if your business is made up of a small team with limited resources, or even for a large business that is accountable to more staff and pay-related queries. It is often the case that quality customer service far exceeds any other metric.
2. Are there payroll integration opportunities?
There is a reasonable expectation that a quality payroll solution can integrate with adjacent software solutions. This can be an invaluable asset to any business and will eliminate the need for double-handing and subsequent human error.
The typical integration software to ask your new payroll provider about, are:
- Time and attendance software
- HR software
- HR onboarding software
- Point of Sale systems
Prior to selecting a new payroll provider, speak with your department heads to understand how the existing payroll system works for them and their team. Those who manage full-time staff may not understand how important time-tracking software is for those managing casual staff. There may be an integration or component you have overlooked, so avoid choosing a new provider that will mean you have to find new integrations or revert back to single-software operation.
3. How to migrate the data?
Business and payroll data is not only critical to the planning and forecasting of your future operation, but personal data should also be secure at all times. Discuss what measures are in place to protect the data migration, and ensure that all reconciliations have been completed so that an accurate snapshot can be accessed through your new payroll system or provider. There may be an expectation that you manually migrate this across, so be sure to query this process when choosing a payroll system. If this is not an area of focus for your new payroll provider but a critical component for your own records, you may need to enquire with an alternative provider.
4. What is the timing of your payroll change?
Depending on the condition of your current payroll system and the age of your business, the timing of a payroll changeover may be prompt or it may be more involved. Understand what the timing will be when choosing a payroll system so that you can mitigate any issues and avoid any risk of delayed pay runs. You may also choose to change payroll providers at a time in your business when things are quiet and “business as usual”, rather than during a busy period or a time when your finance professionals are on holiday.
Troubleshooting any timing delays and issues will put the business at ease and keep your contractual obligations to your employees upheld.
5. How can you ensure payroll compliance?
It is unlikely that your shortlisted payroll providers are not compliant with the current payroll regulations and legislation, but it is good practice to do some quality assurance here and find out how these compliances are championed through the software interface. Offshore payroll solutions or outsourced payroll professionals residing in another country may not have an understanding of the Australian Tax Office and its nuances. Did you know that many Australians are being underpaid, risking reputation and commercial damage of the business? Consult with a payroll consulting service to understand which payroll provider can ensure legal compliance. Finding testimonials from businesses similar to yours is another way to broaden your assessment of a payroll provider.
6. Is it providing value to your business?
This consideration might be assumed when choosing a payroll system, but there are some businesses that have worked with payroll services that solve one problem but fail to bring further value to the business’ management system. Understand the unique challenges of your business operation and find a payroll software or provider that can purposefully solve that issue and extend further benefits. Perhaps you need to ask a potential provider if they can tailor a solution for you, or bring your business challenges to them and see how they can work within those parameters.
i3Group is a payroll management provider that can take control of your payroll responsibilities and ensure that accurate and timely payroll is completed each pay cycle. Our payroll software can be integrated with existing solutions and can improve the function of your business exponentially.
Contact i3Group today, or request a demo to see how cohesive your payroll function can be.
Interested in more information about payroll systems? Check out our master guide here!