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Five simple steps to changing payroll software

Coming off the back of a payroll headache? No matter where you’re based in the world, it’s likely you’ve experienced a Financial Year reporting nightmare. Have you considered it could be time for a change of software?

image of a worker looking at paperwork looking to streamline their payroll processes

If there’s a disconnect between what you need and what your current payroll software is offering it’s likely you’re leaning towards making the switch. And, if you’re still thinking that changing software isn’t worth the investment, the pain, or the effort, this guide is for you. 

 

So, here are the five simple steps we’d advise you to take to make changing payroll software as painless as possible: 

 

1: Understand your current provider’s leaving policy 

Deadlines, fees and contractual policies. This should be your first port of call when it comes to changing payroll software. You don’t want to be in a situation where terminating your contract could cost you a large sum, or land you in trouble with data transfer. 

So make sure you’re aware of what you need to do to leave on good terms with your current provider. 

 

2: Know what you’re looking for in a new payroll software 

We’d recommend that instead of going gun-ho on your research for a new provider, you stop and think of the things you wished your current payroll software did that it can’t. That way, you’re more likely to go into research knowing what you’d like to achieve, and you can match with providers that meet your needs. 

When selecting a payroll solution, it’s important to select one that will help you get valuable time back in your day that would otherwise be spent on the manual, repetitive, complex tasks of payroll. You should be able to automate the basic payroll tasks such as benefits, timesheets, calculations and reports to name a few. 

Some things you might want to look for beyond blanket automation are: 

  • Local compliance: this can ensure your processes are in accordance with the latest legislative changes.
  • Scalability: you should be able to grow your business with the software at any time.
  • Supported by the cloud: relying on your data as one source of truth can reduce double up on work and increase accuracy
  • Integrations: you should be able to integrate your existing software to ensure the data is talking to each other.
  • Supported by a team that cares: Hands-on help from a human team when you need it most 

You might also consider what things you wish you could automate now that you can’t, for instance, public/bank holidays, transference of data across systems or contributions and taxes.

 

3: Plan your transition in advance 

There is no good or bad time to change payroll software systems, there are positives whether you make the switch in a busy or quiet period. But – planning is going to ensure you don’t affect your employees which is super important, especially for those who are living paycheck to paycheck. 

You’ll need to know what parts of the business could be most affected by a transition, and which processes are likely to change or become redundant. 

During a quiet period, you should benefit from extra time to evaluate your needs. With Employment Hero you’d get the opportunity to work with the team to ensure you know the software back-to-front once you get started. You’ll be set up to get maximum value from the software from day one.

During a busy period, you’ll benefit from our effective systems swooping in to de-stress the day. Our automated tools can make operations so much smoother during periods of high activity, giving you back much-needed time. 

Tax Year might be most tempting to change software, however, when switching outside of year-end, the team at Employment Hero Payroll are happy to give you all the information and tools you need to carry out a fairly painless switch anytime in the year.

 

4: Make yourself familiar with pricing models 

You want to avoid additional fees later down the road. So the best approach is to get familiar with your chosen provider’s pricing model. Most payroll software providers will include additional fees for extra features. They may offer a free demo, or trial that makes use of their base package, and entice you in with that price. 

Just be aware that if you’re looking for software fully loaded with features, it’s much more likely to sit at a “professional” or “enterprise” level of cost. So be sure to read over what each tier of the pricing model looks like and pick the one you’re most comfortable with. 

Ok, so now you’re familiar with everything – it’s time to choose your provider before moving to the next (and final) step. 

 

5: Transfer your data, double-check and perform parallel payroll runs

Once you’ve made your decision on which software to choose, it’s time to transfer your data. From your research in step two, you’ll know whether or not your chosen software can automate your data input (data transfers across systems). This is the easiest part to make a mistake, so make sure you’ve got all the required information and data your new system is asking for. The way it labels or interacts with your employees may be different to your previous provider, so be ready to make adjustments where need be. 

Make sure you’re working with your team to learn and in turn, train them on the correct usage of your new software. 

Once your data’s transferred, make sure you compare your old records to your new ones. 

Before you completely leave your old software behind, you’ll want to go through a parallel payroll run to make sure everything’s running smoothly. Contact your payroll provider to get help doing this. 

The TLDR (too long didn’t read): make sure you check and double-check before turning off your old payroll provider. 

This may all sound a little overwhelming, and that’s why it’s important to find a payroll provider that can put you at ease before, during and after migration. Go with the provider that puts you most at ease!

 

Could Employment Hero Payroll be the software for you? 

Luckily, when you use Employment Hero Payroll, you’re supported by our team to help you every step of the way. No questions will go unanswered, as our payroll experts will be there to support you through the onboarding process and beyond. It can be a quick process and can consist of uploading all of your data with a CSV file.

We know your team is busy, so we’ve made onboarding the most streamlined process possible. We can also easily integrate with industry-leading platforms you’re already using, so you don’t have to risk double handling your data.

Our Payroll Management Software can help you with: 

If you’re feeling overwhelmingly busy and your current payroll software is just not holding up, see for yourself how easy it can be to make the switch to Employment Hero Payroll.

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