What a good payroll software achieves and when to invest
Billing, payroll and tax returns - most people are not keen on these tasks. Wage and payroll softwares should make it easier and are therefore particularly popular with small to medium-sized companies whose budget often does not allow for an own accountant or HR department. However, what requirements does such a software have to fulfill in order to really provide support? When is the purchase worthwhile? And what criteria should be considered in the election? Smunch did some research for you.
When to invest
Whether and when the investment pays off is different for each company. The more employees and the more different types of income, the more extensive the payroll. In general, the question of software is closely related to the possible cost savings. It should be kept in mind that the person responsible for payroll accounting loses time during which he or she can be used elsewhere and possibly generate turnover. Appropriate software can speed up the process and minimize these losses. It is therefore necessary to determine the ratio of the saved resources and the costs of the software.
Once you have decided to purchase a software, you still have to choose the right model. What should the system offer to really be a support?
Simple and understandable
Ideally, the software is easy to use even for inexperienced employees and requires little training. Thus, clarity and understandable structure are a big plus.
Versatile and flexible
Although the system should be simple, this is no reason to forego helpful applications. Versatile options, features and templates should make everyday life easier - and the more the software has, the better. The right choice should include the following tools:
- Options for different groups of employees (e.g. trainees, low-paid workers, concurrently employed persons and regular full-time employees)
- The possibility of booking exceptional cases (such as one-time payments, pay curtailments / continuations or monetary benefits)
- Templates for forms and contracts
- Overviews of payroll tax, social security and travel expenses
- Support during the tax audit
In addition, there should be the option of accessing the data from anywhere, anytime so that billing can be done on business trips or from the home office. Being able to create multiple accounts allows you to divide up the tasks.
Good interfaces and smart updates
When searching, also make sure that the selected software offers good interfaces for easy export of information. That way you can transfer data to Word or Excel with just one click, send the monthly settlement to the tax office - or integrate the Smunch orders of your business. Since there are regular changes, especially in the pay area, your system should always stay on the ball. New collective agreements or laws can quickly turn the entire bill upside down. Therefore, the payroll software should perform regular automatic updates to keep you up to date.
Just have a go
To make sure that the new software also fits your requirements and offers all necessary modules, it is recommended to test different options. Most softwares offer a free trial month to get familiar with the system. This is definitely worth it, as dissatisfactions often only appear over time.
In general, a good payroll software offers great relief, as it leads safely and reliably through the - especially for beginners - very confusing bureaucratic jungle. Thanks to the system, errors can often be detected directly and thus avoided. Together with the time saved, the purchase is very sensible, especially in case of a more complex billing process. Find out more about this topic, finance and fringe benefits on our Smunch website.
All the best
The Smunch Team
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