How to Choose a Great Payroll System

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How to Choose a Great Payroll System

In our previous blog posts we have spoken about the perils of using a manual bookkeeping system. But there are 100’s if not 1000’s of computerised payroll systems out there, so how do you choose the right one for your business?

When looking for a great payroll system, you need to look at your business first:

  • Are all your employees on salary?
  • Are they casual?
  • Do you have penalty and overtime rates?
  • Do you have award payments such as allowances for jobs or wet days or venues?

All these things need to be taken into account when looking at a payroll system. So once you list these, then you can go looking.

A great payroll system is one that once it has been setup (preferably quickly and easily), there is only one set of data entry. Whether it be a system that your employees can clock in via a timeclock that puts the hours directly into the payroll system or whether it is a manual timesheet that needs to be entered, the end goal is one set of data entry.

There are systems out there that will actually take your awards and set your payroll up from there.  If you have very complicated awards then I would be looking at one of those programs.

There are many and varied add-ons that dove-tail into Xero which is a cloud accounting package. Xero itelf has a great payroll system which is good for basic payroll. If you do have lots of allowances and differences in pays due to awards then it can take an extra to get the information in but if you team this with Deputy or Enable HR then the time savings are absolutely fantastic.

The important decider in choosing a great payroll system is not necessarily price.  I know that sounds hard to bear as a small business owner but the price of the payroll system  that is the best fit for you may be slightly higher than one of the basic systems but the times savings that you will get and the increased accuracy you will get are phenomenal and should outweigh the extra costs. Not to mention that when the ATO on behalf of Superannuation, Fair Work Australia or Workcover come calling, you can pull the reports and the source data to prove to them what you  have done and that it has been prepared correctly.

At the end of the day, all you really want to do is make sure you pay your employees correctly.  So the more complicated your payroll, the more complicated the payroll system but the whole end goal is to make it as simple as possible to use. Let the machine do the work and calculate the complications and the employees simply put their times in with a human eye to check it all.

If you would like some help in choosing the right payroll system for your business, The Bookkeeper Hub is a specialist Bookkeeping & Payroll Service.  Victoria is the person to contact via



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