When Should You Upgrade Your Payroll Software? (eGuide)
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When Should You Upgrade Your Payroll Software

Should You Upgrade Your Payroll Software?

What Makes PayDay Software and Services Better

Why Should You Upgrade Your Payroll Software?


Automating the payroll system process using software eliminates the need for time-consuming and error-prone manual labour. Furthermore, technological development is simplifying the once difficult work. Some businesses only contemplate replacing their payroll software after it has reached a critical point and cannot be maintained.

Even if the payroll services and technology are not faulty in the technical sense, they may become less suitable to the company’s needs as it expands and undergoes changes.

A proactive approach to managing payroll software includes keeping an eye out for signs that indicate it is time the company’s payroll system may need an overhaul.

Instead of putting off updating the payroll software until the last minute, it is more efficient and responsible to invest time and energy into exploring the various options that will ensure a new payroll platform that can accommodate client specific adaptations.

Effective payroll software can streamline business processes, save costs, and modernise a company’s infrastructure. By implementing new and improved technology, businesses can reach their full potential.

This article highlights a few signs that indicate it is time for a company to update its Payroll Software System.

Payroll is a Problem Due to Company Growth


The company is expanding rapidly, but the payroll system can’t keep up. When a company has outgrown its first HR spreadsheet, upgraded the accounting software, or invested in specialised tools for managing expenses, benchmarking performance, hiring, and tracking employee time, it has likely reached a stage of development where it requires more than a basic outsourcing process for payroll solutions.

Also, if a company already has those tools and is reliant on them, then it is even more important to have a payroll system that can integrate effectively with them. An updated payroll system is required if the company is still making use of Excel spreadsheet downloads, uploads, and emails. Changing payroll systems may be necessary if they prove too cumbersome to manage.

Complexity Hampers Productivity


In modern businesses, many individuals from several departments must collaborate to collect and verify data before it can be analysed or used to process payments. This is a sign that the payroll process has become intricate and the quantity of changes and data points is intimidating.

Payroll is managed more like a project than a department when it has its own calendar, specific workflow, strategy for cut-off days on data collection, and approvals scheduled out for the next several months.


Payroll management software solutions were developed to circumvent limitations imposed by outsourcing or manual in-house processing. If the company is experiencing problems and delays, upgrading the Payroll System will restore its faith in the process and give users back control while involving all relevant parties.

Payday is Always a Game of Catch-up


Payday is one of the most important tasks of the payroll department. When the HR department isn’t busy processing payroll information for new hires, they’re likely making adjustments to existing employee information or running reports at month-end.


Teams can easily become overwhelmed by the constant volume of work. Employees are more prone to make mistakes or fail to meet deadlines as their workloads increase.


A clue that the company needs to re-evaluate its processes, tools, and software is when the HR department is swamped with work because of a never-ending backlog of inaccurate data entries, and payroll issues.

Employees are Complaining and Not Paid on Time


There is a definite red flag when workers constantly bombard HR with emails about IRP5 requests, address changes, bank account updates, and payroll mistakes. Whenever workers voice repeated dissatisfaction with anything, it’s a good indication that it is time to make improvements.


All of these problems are amenable to cutting-edge technological solutions. Employee self-service portals allow workers to manage their basic information and make necessary changes. Standard payroll mistakes can also be avoided by keeping the system updated with changing business, industry and environmental demands.


Keeping Up with Legal Requirements


Payroll laws and regulations are always evolving. New regulations and changes in the law must be monitored constantly. A company could be subject to severe penalties for not complying with the latest legal requirements.

However, it is easy to overlook the latest government guidelines on payroll law amidst the plethora of other details that must be tracked. Keeping up with ever-changing compliance requirements and laws can be a full-time activity.

If the HR software department, and by extension the company, is unable to keep up-to-date with the latest legislation and payroll regulations, resulting in fines, then it is time for a complete assessment of the payroll system.

Easy to Use


The time for change has come when the system has a poor user interface and is cumbersome overall. When a business frequently needs help from the support staff, it’s probably time to upgrade. Modern software is designed to be user-friendly without sacrificing functionality, and many suppliers offer free trials so that businesses can evaluate the most recent technology.

Moving Into the Cloud


The need for businesses to adopt a global payroll system and move away from traditional on-premise deployments is significant. In response to this issue, cloud-based solutions provide a practical means of managing a globally mobile and collaborative workforce. The cloud’s scalability and adaptability allow for better delegation of support to staff.


The data is protected from intrusion and other threats thanks to the cutting-edge security measures in place. Safe and flexible payroll transactions in most locations can be processed with cloud-enabled Payroll Management, while still adhering to all applicable regulatory guidelines.

Time-Consuming and Accuracy Issues


If processing payroll takes too long, if the software is not mobile-friendly, and if the organisation is having data accuracy concerns, an updated automated payroll software system can ease or eliminate these problems.

A Last Word


Payroll administration is a critical element of every organisation. It is one of the primary drivers of talent management. The advent of cloud computing, has ushered in a revolutionary change in the way businesses handle payroll. Companies and the directors of HR departments need to keep up with these changes to remain relevant in today’s ever-changing business environment.

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