Choosing The Right Payroll Software For Your Small Business

Updated October 6, 2023

Before jumping into buying payroll software, it’s important to make sure that you’ve found the right type for the job. If you’re a small business, you’ll want to know that your money is being well-spent, especially if you’re yet to invest in tech to improve your processes. There’s no one size fits all when it comes to payroll for small businesses, so you’ll really have to consider your needs and then weigh up the pros and cons of different packages. It’s no good taking the first option you come across, even if it is the cheapest. These are some of the things you’ll need to bear in mind:


Your business might be small now, but are you planning to grow your operations or the number of employees you have over the next year? If so, it’s wise to choose a software package that can easily accommodate this, otherwise you’ll have to search for a new provider all over again. You don’t want to pay for more than you need right at this moment, but it’s good to know you can add extra features to your software when the time comes. Many providers offer accounting and payroll software as well as other business solutions such as cashflow monitoring, so take a look at their whole offering before locking in on just payroll.


If you have no experience with accounting or payroll, you need to choose software that’s easy to use. Some types of software are built for industry experts and can be difficult to navigate for small business owners. However, there are plenty of providers that cater to beginners and make their packages as user-friendly as possible. You’ll definitely need to consider this if you’re planning to roll the software out to other employees, as you won’t want to spend too much time on training.


Some types of payroll software allow employees to make changes to their personal details via their own accounts. This can be really helpful for small business owners as it reduces the amount of admin you need to do on your end. What’s more, you won’t have to worry about digging out payslips for anyone who requests them. While you won’t want to give employees complete access to your payroll software, they should have a password to view their information.


One of the most important things to consider before buying payroll software is whether it’s fully accredited. Because it will automatically calculate tax deductions, the software needs to be up-to-date with best practices. It’s no good choosing a cheaper option that gets things wrong, because that means you’ll have to pick up the slack. Most software is now fully certified, so beware of providers who don’t offer this information on their website.

The trick to finding the right payroll software for your small business is simply putting in a bit of time and effort to research your options. Don’t rush and think carefully before committing.

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