Best guide to buying a payroll software in 2020 and beyond

Need is the mother of invention and payroll software were surely invented so that HRs can save time, and effort, and do away with the paperwork, no compliance issue and thus penalties. Getting the right software that truly understands your needs is crucial for the success of your business. Before the pandemic what you had might not be relevant now and in the future. So, in this blog, we tell you whys and hows. This is your blueprint to buying new payroll software.

The Options Available

When thinking of investing in new payroll software, you should know the types of software available in the market. There are two types of these-

  • On-premise
    On-premise software are the software that are implemented in the system you are using they can be used only on that desktop or system and not anywhere else. They are run and installed on premise. They are not run on cloud server or server farm. 
  • On cloud
    On cloud payroll software, as the name suggests are the payroll software that can be accessed from anywhere because all the information entered by any user in it is stored on the cloud. This in the current situation and distributed workforce has helped to a large extent. On cloud payroll users were able to work from home and remotely without any gap. Everything from attendance, data recording and getting salary is streamlined perfectly! 

You can read more here.  This is why it is important for you to have information so that you equipped enough to invest in the right payroll software. 

What is payroll software? 

Let us first understand what exactly is payroll and then see what payroll software is. Payroll is made of two words- pay and roll. It is a roll aka list that consists of all the details of employees that are employed and are to be paid. 

So the software is a payroll software when these things are recorded on software rather than papers. 

Payroll trends of 2020
Payroll did not undergo an exceptional refinement this year. However, there are some things that were a focal point. They are as follows-

  • Making payslip available online-
    So, because people are working from home and no one is meeting each other the software must have the feature to download payslip and must be able to generate the same on its own. This need was rising and so the providers who don’t have this feature have either made this available or working on it. 
  • No duplicate entry-
    Getting rid of duplicate entries was the whole point of getting payroll software but still, some software had this issue. So a new thing that was introduced by a couple of payroll software this year was a smart diagnostic check by the software. The duplicate entry and the discrepancies are shown by the software at the end of each month so that the payroll manager can process the payroll worry-free. 
  • On cloud management-
    Availability of data on the cloud was rising in demand as people were working from home and transferring their systems or opening the desktop for every little work was becoming quite frustrating for everyone. So mobile app and on cloud availability so that the person can login on any device from anywhere, anytime also is provided now by the vendor. 
  • Insights-
    The reports related to payroll, like the money spent, saved, hiring costs and every other thing should be provided by your vendor too as all this helps you in thriving your business, seeing the areas that need improvement and more! 

Things to check before you invest in a payroll software
There are many things that you should keep in mind that you you should check before taking a payroll software, here are the most important ones- 

  • Support and customer service
  • Integration with finance and accounting applications and software
  • Database and security like the on cloud server they use and if everything is encrypted
  • User interactiveness is necessary! UI should be great otherwise using it would be troublesome
  • Free of cost trial if that is available or a very comprehensive demo that explains everything
  • Human resource management services and reports are surely a great add-on

Lastly, before you start your journey to finding a great payroll software, you must compare how it is better than the one you are using currently. If you end up getting the same software, what would be the benefit? Your efforts will get wasted. If you do a comparative analysis, you will be able to understand how the new software will address your current and future needs in a better way! 

Also, you must remember that as HR department you must see what the software must-have instead of what is nice to have. The additional fancy features look good in the demo but if the basic features are not top-notch it would a bad decision to invest in it.