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No matter what the size of your business, payroll software can be a handy thing to invest in. It helps to streamline the process when it comes to payday, keeping your employees, and the taxman, happy.
This clear guide to payroll software will explain how it all works, and point you in the right direction to finding the best products on the market.
Simply put, payroll software automatically carries out the key tasks that allow a company to process its payroll. It'll work out exactly how much each employee needs to be paid, taking into account any necessary taxes or deductions along the way.
Advanced payroll software will also carry out more complicated tasks. For example, if an employee is receiving a bonus.
Even better, the software will work out and collect all of this information in one place, allowing you to get up-to-date financial reports at the click of a button.
Here are a few essential functions you can expect to get from most payroll software:
Payroll software achieves a primary goal for your business, and that's to speed up your payroll calculations.
Traditionally, payrolls are worked out manually. As businesses grow and take on more employees, accurately keeping track of the payroll becomes a difficult task.
If you only have a few employee salaries to keep track of, then you might not need to invest in payroll software just yet; but its something worth keeping in mind for the future. Today you can find some more basic, but free payroll software so you can give it a try before you commit to a paid-for subscription.
Keep in mind that you may still need to input hard data into the software, and update this regularly so the software runs smoothly. This may include:
How did we choose these brands?
The software featured below were chosen to showcase the range of options on offer for businesses in Australia. The best payroll software for you will depend on the needs of your company and your specific circumstances.
Here are five payroll software companies worth thinking about.
Quickbooks. QuickBooks Payroll is an accounting software offering small businesses a trouble-free way to sort out their timesheets and payslips. It's straightforward to use: you'll enter your employee's hours and the software will do the heavy lifting. Read more about Quickbooks' inventory management tools.
Xero. View your cash flow, transactions and account details at any time or place. The flexibility of Xero's plans means your businesses can be accommodated at different stages of its growth journey.
Sage. This cloud-based software can deliver multiple user reports to help you keep track of your payroll. Plus, your company can get tailored help from a specified payroll expert or take advantage of a knowledge hub online.
MYOB. The Melbourne-based brand offers an accounting package with plenty of neat features. These include customisable invoices that are suited to the type of business you run. You can create transactions from incoming emails or through the MYOB Capture app and these come pre-populated with data to help reduce admin.
MYOB is the industry standard for delivering on all single touch payroll solutions, including JobKeeper.
Reckon. Keep costs down with a paid-for plan for as little as $7 per month with Reckon One. What's more, there's no limit to the number of staff you can manage payroll for. This software has a clear, intuitive interface and a dashboard that can be edited to meet your needs.
Software | Price | Free Trial |
Quickbooks | From $14/month | Yes - 30 days |
Xero | From $25/month | Yes - 30 days |
Sage | From $15/month | Yes - 30 days |
MYOB | From $27/month | Yes - 30 days |
Reckon | From $7/month | Yes - 30 days |
Square offers simple ways for businesses to integrate payroll, along with a range of other services including accepting card payments.
Pros
Cons
There's no doubt that using a computerised payroll system can be very beneficial for your business, as by automating manual processes you can boost productivity and cut down on human error.
Choosing the best payroll software for you for you depends on a number of factors, including the size of business that you run. While smaller business may not find it immediately cost-effective to splash out on the most feature-heavy software, you could try a free trial and then switch to a paid-for package at a later date.Does your company belong in this list?
Single touch payroll is a new system whereby small businesses can report their payroll to the Australian Tax Office after each payday. This can be done by using single touch payroll software that produces ATO-compliant reports.
There are several free payroll software packages available on the market, which may suit smaller businesses that don't require too many features. But it's up to you to decide whether or not such basic plans will meet your needs as your business grows.
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