Is it Worth Upgrading Your Payroll System?

When it comes to payroll systems, there is often a temptation to upgrade the program your business has been using for many years.

After all, newer technology is usually more efficient and can make the payroll process easier for your team. But before you rush into an upgrade, consider these 3 reasons why you may want to think twice about making the switch and instead review your payroll processes first.

Costs and Time Involved

One of the biggest factors to consider when upgrading your payroll system is how much time and money will be involved in making the transition.

Not only do you have to purchase the new software, but you also have to devote time and resources to training everyone on its use. Depending on the size of your company, this can take weeks or even months and require significant financial investment.

Risk of Unsuccessful Transition

Another factor that should be considered when deciding whether or not to upgrade your payroll system is that there is always a risk that the new system will not work as expected.

Even if you do all of the necessary research, there’s no guarantee that the new technology will meet all of your needs or provide improvements over what you already had in place. So before investing in a new payroll system, make sure you weigh out the risks versus rewards carefully.

Suitability of Current System

Finally, another big question to ask yourself before deciding whether or not to upgrade your payroll system is whether or not it’s still meeting your needs.

Often teams are quick to opt for upgrades without considering how useful their existing system may still be with a few tweaks here and there. If it turns out that your current system is actually quite suitable for managing payroll tasks then upgrading may not be necessary after all.

Upgrading a payroll system can be costly and time-consuming, so before jumping in head first make sure that it’s really necessary for your business needs.

Consider costs associated with upgrades, potential risks involved in transitioning, as well as potential improvements with revamping existing software instead of opting for a complete overhaul.

If after assessing all these factors you decide that an upgrade makes sense for your business then go ahead but do ensure you review all your payroll processes before you start!

Businesses can email contactus@payrollexpertsaustralia.com.au or call 1300 287 213 for free first-step advice on how to ensure your Payroll processes can safeguard your Payroll compliance. Follow us on LinkedIn or sign up here to receive our articles direct to your email inbox.