Thinking it might be time to switch payroll software? Don’t be put off by the idea of migrating your payroll; it’s probably not as complicated as you think.
Payroll is a super important part of your business admin; your people depend on you to get payroll right and deliver it on time. Having the right software in place can make that crucial part of the month a little easier.
But deciding to change your payroll software provider and actually making the switch are 2 different things altogether.
When you’re dealing with a vital and constant task like making sure people get paid on time, finding a new provider and choosing the right time to minimise disruption can feel like a precarious task—one that’s all too easy to keep on kicking down the road.
But switching your payroll provider doesn’t have to be difficult. In this article, we’ll share some tips on making your transition to a new payroll software (and reaping all the benefits of migrating to a smarter solution) as smooth as possible.
Download your free copy of the “The changing face of HR” report
Before we get to the “how”, let’s take a quick look at the “why”. Why might your business need to upgrade its payroll software in the first place?
Payroll software has come a long way in the past few years. Many modern solutions are packing smart features that make financial admin like filing pensions, P60s, and payslips much easier—or that can even automate them entirely, saving you time and cutting down on errors.
Some platforms also include built-in HR functionality to help you make sure your payroll is accurate, such as leave tracking, timesheets, and expense management.
Older payroll software might not offer these handy features, but even more importantly, it might not be up to date with changing tax laws, regulations, or reporting requirements, which can lead to significant penalties and fines.
Perhaps your current payroll software doesn’t integrate well with other business tools either, like HR systems, time and attendance software, or accounting solutions, making it difficult to share data between systems and get an accurate view of your business.
If you’re looking for a smarter, more unified way of managing payroll, it could be time for a change.
All businesses want to grow, but if you’re using payroll software that’s outdated or not designed to scale with you, you might struggle to handle increased workloads or a larger employee base as your business expands.
This can become an even bigger issue if your business operates in multiple countries. If your current software doesn’t support multiple payroll regulations and currencies, managing global payroll will be a headache.
Managing payroll is a major task with no finish line; the last thing you want is to battle against a complex or unintuitive interface that slows down payroll processing and makes it harder to avoid errors. If your software is making your job harder, not easier, then you could be with the wrong provider.
Over time, the cost of your payroll software might have gone up, or you might find that you’re stuck with an inflexible and unsuitable model, paying for features you don’t need.
You might also have become aware of hidden fees or additional costs associated with your software, like data migration costs or per-employee charges, that have you questioning whether your current provider is offering the kind of value you need.
If your payroll software provider has a poor track record on security, doesn’t comply with relevant data privacy regulations like GDPR, or isn’t providing security functionality that properly protects your sensitive employee data, you might find yourself looking for more safe and reliable options.
Some payroll software providers have restrictions or criteria that might not fit with your company size or set-up, such as a minimum or maximum number of employees. You want to choose with a provider that allows you the flexibility to scale or shrink as your business demands.
You’ve decided to make the switch, and you’re on the hunt for new payroll software; so what should you be looking for in your new provider?
Choosing the right software for your unique business needs will mean doing some digging around key factors like essential features, compliance considerations, and budget.
Here are a few questions you should ask to help you size up your options.
You can change your payroll software at any time; the best time for your business to switch payroll providers depends on several factors, including the amount of data that needs to be migrated and the software vendor’s requirements.
While you can switch midway through the year with a bit of forward planning, it can be more complicated and might involve sharing year-to-date figures with the new provider.
For this reason, many businesses choose to switch at times of the year when there’s a natural break to make the transition easier. Some software, like Sage Payroll, makes it easier to switch at any time.
At the start of a new calendar year. This tends to be the least complicated option, allowing you to start the new year with your new provider. It also avoids having to pull historical payroll data, which can be difficult if you have a lot of employees. (Plus, the new year tends to be a quiet period for many businesses, giving you a bit more time and space to get things set up.)
At the start of a new quarter. Giving you a bit more flexibility than waiting for the end of the year, this option allows you to be fully onboarded and start using your new provider at the beginning of the quarter.
At the start of a new financial year. This option means you can implement the government’s yearly tax changes without having to worry about incorrectly entering historic tax information.
At the end of your payroll contract. Before switching, you’ll need to contact your current provider, let them know you’re planning to cancel, and ask what steps you need to take, especially as different providers may have different cancellation notice periods. If you have a year-long contract with your current payroll software provider, it may make financial sense to wait until the end of the contract to terminate your service and make the switch to a new solution.
Once you’ve chosen your new payroll software and decided when you’re going to roll it out, all that’s left to do is make the switch—and it’s really not as complicated as you might imagine. Here’s how to help it go smoothly:
You’ll need to migrate your payroll data from your old system to your new one so that you’ve got all the information required to keep payroll on track and on time.
First, finish running any processes in your current system, tie up any loose ends, and output any reports you might need. Then you can export the necessary data, ready to load it into the new system when you’re ready.
You may still need to input some data into the new software manually, but exporting data will save you a lot of time.
You’ll need information like employee names, addresses, National Insurance numbers, and employment details, as well as payroll records like wage information, deductions, taxes, and benefits.
Create a timeline for the switchover, including key milestones like data migration, training, and go-live dates.
Map out this schedule carefully so that it has minimal impact on operations by giving yourself plenty of time to set up and get to know the new software before you need to issue your first payroll.
If you have a team to help you, assign clear responsibilities for each stage of the switch so that everyone is on the same page and knows who’s accountable for what.
Next, it’s time to either log in to your cloud solution or install your software on your company devices and get it configured. You’ll need to get your company set up and input all the necessary details so that you’re ready to roll when your records are imported.
Not all software handles data in the same way, so it’s worth finding out if there are any data formatting or compatibility requirements before you migrate your data into the new software.
Now is a good time to do some data housekeeping. Check your data and make sure it’s complete and accurate so that you can minimise any potential issues during the migration.
Once you’ve scrubbed up your data, it’ll be ready to import into your new system, and you can get started setting up your opening balances.
If you’ll be the one leading on payroll, take some time to learn about the new software. Most vendors provide documentation and even free training content to help you get up to speed and make the most of the software’s features.
If you have employees who will be using the new software, offer training or connect them with the resources they need to get comfortable using the new system.
Now you’re ready to go live. When the big day arrives, say goodbye to your old software and start using your new platform.
And if you stuck to your schedule, you’ll have had some time to find your way around and get everything set up so that you can get right to business with little disruption to your day-to-day operations.
Switching to any kind of new software can be intimidating, especially when it involves something so important to your company and its employees as payroll.
But with some careful thought and planning, you can make this transformative payroll switch anytime and start enjoying faster, easier payroll processes in no time.
The post Why it’s easier than you think to switch payroll software appeared first on Sage Advice United Kingdom.
Payroll is a super important part of your business admin; your people depend on you to get payroll right and deliver it on time. Having the right software in place can make that crucial part of the month a little easier.
But deciding to change your payroll software provider and actually making the switch are 2 different things altogether.
When you’re dealing with a vital and constant task like making sure people get paid on time, finding a new provider and choosing the right time to minimise disruption can feel like a precarious task—one that’s all too easy to keep on kicking down the road.
But switching your payroll provider doesn’t have to be difficult. In this article, we’ll share some tips on making your transition to a new payroll software (and reaping all the benefits of migrating to a smarter solution) as smooth as possible.
Download your free copy of the “The changing face of HR” report
- Why switch payroll software?
- What questions should you ask when looking to switch payroll providers?
- When’s the best time to switch payroll software?
- Changing your payroll provider: Your 5-step checklist
- Final thoughts: Take the pain out of payroll
Why switch payroll software?
Before we get to the “how”, let’s take a quick look at the “why”. Why might your business need to upgrade its payroll software in the first place?
Outdated features
Payroll software has come a long way in the past few years. Many modern solutions are packing smart features that make financial admin like filing pensions, P60s, and payslips much easier—or that can even automate them entirely, saving you time and cutting down on errors.
Some platforms also include built-in HR functionality to help you make sure your payroll is accurate, such as leave tracking, timesheets, and expense management.
Older payroll software might not offer these handy features, but even more importantly, it might not be up to date with changing tax laws, regulations, or reporting requirements, which can lead to significant penalties and fines.
Perhaps your current payroll software doesn’t integrate well with other business tools either, like HR systems, time and attendance software, or accounting solutions, making it difficult to share data between systems and get an accurate view of your business.
If you’re looking for a smarter, more unified way of managing payroll, it could be time for a change.
Limited scalability
All businesses want to grow, but if you’re using payroll software that’s outdated or not designed to scale with you, you might struggle to handle increased workloads or a larger employee base as your business expands.
This can become an even bigger issue if your business operates in multiple countries. If your current software doesn’t support multiple payroll regulations and currencies, managing global payroll will be a headache.
Poor user experience
Managing payroll is a major task with no finish line; the last thing you want is to battle against a complex or unintuitive interface that slows down payroll processing and makes it harder to avoid errors. If your software is making your job harder, not easier, then you could be with the wrong provider.
High costs
Over time, the cost of your payroll software might have gone up, or you might find that you’re stuck with an inflexible and unsuitable model, paying for features you don’t need.
You might also have become aware of hidden fees or additional costs associated with your software, like data migration costs or per-employee charges, that have you questioning whether your current provider is offering the kind of value you need.
Security concerns
If your payroll software provider has a poor track record on security, doesn’t comply with relevant data privacy regulations like GDPR, or isn’t providing security functionality that properly protects your sensitive employee data, you might find yourself looking for more safe and reliable options.
Restrictive plans
Some payroll software providers have restrictions or criteria that might not fit with your company size or set-up, such as a minimum or maximum number of employees. You want to choose with a provider that allows you the flexibility to scale or shrink as your business demands.
What questions should you ask when looking to switch payroll providers?
You’ve decided to make the switch, and you’re on the hunt for new payroll software; so what should you be looking for in your new provider?
Choosing the right software for your unique business needs will mean doing some digging around key factors like essential features, compliance considerations, and budget.
Here are a few questions you should ask to help you size up your options.
Features and functionality
- Does the software offer all the necessary features for your business, such as time and attendance tracking, benefits administration, and direct deposit?
- Can it handle more complex payroll scenarios like overtime, commissions, and bonuses?
- Does it integrate with other business systems like HR, accounting, and time tracking?
Compliance
- Is the software up-to-date with the latest tax laws and regulations?
- Does it automatically handle tax calculations and filings?
- How often are software updates released to ensure compliance?
Scalability
- Can the software handle your company’s growth and expansion plans?
- Does it offer multi-location capabilities if your business has multiple offices?
- Can it accommodate changes in employee numbers and pay structures?
Security and data privacy
- What security measures are in place to protect employee data?
- Does the software comply with all data privacy regulations that apply to your region or industry?
- How often are security audits conducted?
Costs and support
- What is the pricing structure, including any additional fees or hidden costs?
- What level of customer support is available, including response times and channels?
- Does the provider offer training and implementation assistance?
When’s the best time to switch payroll software?
You can change your payroll software at any time; the best time for your business to switch payroll providers depends on several factors, including the amount of data that needs to be migrated and the software vendor’s requirements.
While you can switch midway through the year with a bit of forward planning, it can be more complicated and might involve sharing year-to-date figures with the new provider.
For this reason, many businesses choose to switch at times of the year when there’s a natural break to make the transition easier. Some software, like Sage Payroll, makes it easier to switch at any time.
At the start of a new calendar year. This tends to be the least complicated option, allowing you to start the new year with your new provider. It also avoids having to pull historical payroll data, which can be difficult if you have a lot of employees. (Plus, the new year tends to be a quiet period for many businesses, giving you a bit more time and space to get things set up.)
At the start of a new quarter. Giving you a bit more flexibility than waiting for the end of the year, this option allows you to be fully onboarded and start using your new provider at the beginning of the quarter.
At the start of a new financial year. This option means you can implement the government’s yearly tax changes without having to worry about incorrectly entering historic tax information.
At the end of your payroll contract. Before switching, you’ll need to contact your current provider, let them know you’re planning to cancel, and ask what steps you need to take, especially as different providers may have different cancellation notice periods. If you have a year-long contract with your current payroll software provider, it may make financial sense to wait until the end of the contract to terminate your service and make the switch to a new solution.
Changing your payroll provider: Your 5-step checklist
Once you’ve chosen your new payroll software and decided when you’re going to roll it out, all that’s left to do is make the switch—and it’s really not as complicated as you might imagine. Here’s how to help it go smoothly:
1. Get your data together
You’ll need to migrate your payroll data from your old system to your new one so that you’ve got all the information required to keep payroll on track and on time.
First, finish running any processes in your current system, tie up any loose ends, and output any reports you might need. Then you can export the necessary data, ready to load it into the new system when you’re ready.
You may still need to input some data into the new software manually, but exporting data will save you a lot of time.
You’ll need information like employee names, addresses, National Insurance numbers, and employment details, as well as payroll records like wage information, deductions, taxes, and benefits.
2. Plan your transition
Create a timeline for the switchover, including key milestones like data migration, training, and go-live dates.
Map out this schedule carefully so that it has minimal impact on operations by giving yourself plenty of time to set up and get to know the new software before you need to issue your first payroll.
If you have a team to help you, assign clear responsibilities for each stage of the switch so that everyone is on the same page and knows who’s accountable for what.
3. Set up your software
Next, it’s time to either log in to your cloud solution or install your software on your company devices and get it configured. You’ll need to get your company set up and input all the necessary details so that you’re ready to roll when your records are imported.
4. Sort and import your data
Not all software handles data in the same way, so it’s worth finding out if there are any data formatting or compatibility requirements before you migrate your data into the new software.
Now is a good time to do some data housekeeping. Check your data and make sure it’s complete and accurate so that you can minimise any potential issues during the migration.
Once you’ve scrubbed up your data, it’ll be ready to import into your new system, and you can get started setting up your opening balances.
5. Get to know your new system
If you’ll be the one leading on payroll, take some time to learn about the new software. Most vendors provide documentation and even free training content to help you get up to speed and make the most of the software’s features.
If you have employees who will be using the new software, offer training or connect them with the resources they need to get comfortable using the new system.
Now you’re ready to go live. When the big day arrives, say goodbye to your old software and start using your new platform.
And if you stuck to your schedule, you’ll have had some time to find your way around and get everything set up so that you can get right to business with little disruption to your day-to-day operations.
Final thoughts: Take the pain out of payroll
Switching to any kind of new software can be intimidating, especially when it involves something so important to your company and its employees as payroll.
But with some careful thought and planning, you can make this transformative payroll switch anytime and start enjoying faster, easier payroll processes in no time.
The post Why it’s easier than you think to switch payroll software appeared first on Sage Advice United Kingdom.