Put simply, payroll bureau software offers a convenient and cost-effective way to manage the entire cycle of payroll operations in any company. At Snow Technology, we offer such payroll management software services to our many satisfied clients. What benefits does choosing a payroll service bureau software bring? Read on to find out but initially, it will be worth understanding a little more about what this sort of software is.
What Is Payroll Bureau Software?
Managing payroll is one of the most business-critical operations any company needs to do regularly. Without an effectively managed payroll function, most businesses would soon fail. And yet, payroll relies on a series of repetitive administrative tasks that are prone to human errors. However, digital technology has meant that payroll management has become very different in recent years. Simply by eliminating mundane tasks, it has helped to improve accuracy and the regularity of employee pay. At its core, this is what payroll service bureau software is – a digital solution that allows companies to outsource their payroll function to a reliable third party using a digital system.
In other words, with payroll service bureau software, the service provider will take care of all the necessary activities to do with pay. For example, they will process salaries, work out PAYE tax deductions, arrange for accurate electronic payments to be made and to complete reports for financial directors, among other things. In short, payroll bureau software for accountants takes over the necessary calculations and other repetitive tasks while businesses and finance teams are free to deal with other important matters.
It is important to also note that the payroll service bureau software also helps employees. Not only will they receive their pay on time, but they’ll be able to access current and past payslips via a secure online portal. This frees up time in HR departments, too. In the UK, any company that wants to simplify its payroll tasks or would like to save money on them can make use of a payroll bureau service.
What Does Payroll Bureau Do?
Typically, a payroll service bureau software system will offer four key areas of functionality.
Digital payslips
As mentioned, payroll bureau software simplifies matters by creating all the necessary information employees want about their pay by offering a portal where payslips can be read and downloaded, if wanted. This cuts down on the need for paper documentation and printing. Employees soon get used to the idea of a digital payslip and having all their records stored in one place on their behalf.
Timesheet processing
Depending on the way a company operates; timesheets may be needed to process accurate salaries. Helpfully, payroll bureau software for accountants means dealing with timesheets is no longer the time-consuming and often tedious process it used to be. HR departments or managers can approve timesheets before they are signed off for payment processing.
Online record-keeping
Please note that it isn’t just past payslips that are kept securely online for employees to access. With full GDPR compliance and a secure password-based access system, other important pay-related documents can be seen on demand. This might include something like the production of P60 forms at the end of the tax year, for instance. Such an approach saves time and money while also providing a secure environment that is often more convenient than a paper-based approach.
Year-end payroll returns
When payroll clerks or accountants process a company’s payroll manually, they must work out the tax payable by each employee as they go. In addition, they’ll need to complete any other deductions that might be necessary, such as student loan repayments, for example. A payroll bureau software service will automate such processes and file both monthly and annual returns from any taxable income that employees receive. Indeed, such software makes completes the calculations required without errors. Organisations can, therefore, avoid potential penalties and fines that might otherwise have arisen from mistakes or late tax returns being filed.
The Commercial Benefits of a Payroll Bureau Service
As well as shifting businesses away from manual payroll processing, payroll bureau software for accountants has further plus points from a commercial perspective:
Overhead reduction
Running a payroll in-house has a significant cost associated with it. Firstly, not just anyone in the finance department will have the necessary skills to deal with overtime at different rates, performance-related bonuses, pension deductions and all of the over factors that complicated typical payrolls. As such, you need to invest in the skills required to run a payroll each month. Training and recruiting the right people take time and expense. There again, there’s retention cost to bear in mind, too. With a payroll bureau service, these costs are fixed and because the software service is offered to other businesses as well as your own, there is a scalable economy to be enjoyed. Moreover, many businesses find they save on postage and printing costs if they switch to such a service.
Direct deposit services
Electronic transfers of accurately calculated salaries constitute an important benefit of a managed payroll bureau software service. Employees tend to prefer them to be handled this way. They no longer have to wait for cheques to clear and can access their money sooner. Providing direct deposits in-house usually needs specialist bookkeeping software with high set-up costs. This is not the case when an outsourced service is used, however.
Focus on priorities
SMEs and large businesses alike can spend too much time dealing with pay either on a weekly or a monthly basis. Processing payments and calculating deductions manually is often a time-consuming process that ties up the finance department’s resources for considerable periods with each payroll. If they outsource payroll activities, on the other hand, they will free up time for other important tasks, such as financial planning, credit control activities and invoicing clients on time. In smaller firms, business owners can be distracted from sales and marketing activities if they are spending too much time dealing with payroll when they could be focussing on growing their business instead.
Payroll regulatory compliance
Salary policies, tax rules and other compliance matters are not set in stone. As such, businesses need to keep up with the latest changes. With the help of an outsourced payroll bureau service, firms can stay one step ahead of payroll compliance at a fraction of the cost of maintaining the necessary in-house expertise. It also means avoiding potential breaches of the rules and subsequent penalties.
Accurate reports
Management reporting is another key part of any good payroll service bureau software offering. Automated reports on things like payroll expenditure, timesheets and payslips help directors and decision-makers to stay on top of their personnel costs. Because the software manages payroll operations in real-time, accurate and up-to-date reports are available whenever they are needed.
What Are the Main Points to Consider in Payroll Service Bureau Software Reviews?
When considering payroll service bureau software reviews, it is a good idea to look at the credentials of the firm offering the service. Are the personnel who will deliver the software-based service suitably experienced in UK payroll regulations, for example? Equally, can they demonstrate the business costs associated with payroll service will be lowered? This will need to be the case regardless of the size of your organisation, especially if you are growing or tend to take on seasonal employees, depending on the pricing structure. There again, can the safety and security of the system be vouched for? Finally, consider whether customer service includes things like taking responsibility for tax filing errors.
Why Choose Payroll Bureau?
Payroll bureau software lowers business costs while improving payroll accuracy and keeping employee queries about their pay to a minimum. It frees up resources while providing a secure platform through which employees can receive timely information. Because payrolls are handled by software that’s geared up for this business function, human errors can be ruled out while management reporting is often vastly improved.
How a Standard Outsource Payroll Bureau Service Can Be Helpful for Your Business
Along with all of the functionality and benefits outlined above outsourcing your company’s payroll function to the Payroll Bureau service means taking the stress out of paydays. Get in touch to book a demo or find out more about Quantum Bureau today.