How to Choose the Best Payroll Software for Small Business

Growth in the size and operations of a business brings with it new challenges in the form of maintaining a good workforce and motivating employees. Small businesses can easily manage the payroll of employees through manual records or simple systems, but as they grow, the need to find a good system that can automate the whole process.

Automated global payroll software allows companies to focus on other aspects of their business.

How to Choose the Best Payroll Software

Customised Solution

Every business has some unique features and so requires a payroll system that matches up to that. Rather than getting attracted by fancy features in a payroll system, identify your needs and choose software accordingly. If your employees are spread across different regions and are paid in different currencies, the payroll software should be able to handle the differences in currencies and the applicable tax deductions.


The cost of payroll processing software can be a flat amount or on a per-employee basis. Choose the option that best suits your budget and is more cost-effective in the long run.


Automated payroll software will not only save time but also resources, thereby cutting down on operational costs. Automated deductions and adjustments for taxes can also lead to streamlining of the whole process, reducing the possibility of errors.

Modern Technologies

Choosing software that uses new technologies like artificial intelligence, machine learning, and analytics is recommended. This will boost the ability of your business to handle payroll well, even when the employees are spread across the globe or when they increase in tandem with the company’s growth.

Integration with HR and ERP systems

Since the payroll processing function is related to human resources, you will need to ensure that the chosen software integrates with the HR and ERP systems that your company is using. 

Resolution of Employee Queries

Choose a software that allows the involved parties, including employees, to communicate their doubts or queries related to payroll, leave and expense approvals.

Latest Applicable Regulations

Payroll processing should be as per applicable rules and regulations. So, go for a software that is updated with the latest laws and rules. This will help you avoid any kind of legal consequences or penalties at a later stage.

Accessibility and Security

Choose a software that can be accessed easily even when you are on the go. This will ensure the smooth running of the operations and easy access to payroll-related information. However, the software needs to be secure too, since it will contain sensitive personal information about your employees and their salaries.

Support Systems

The ease of using payroll software is important, and so is the level of support provided by the software provider. Choose a company that provides continued support for running the software and dealing with any issues that may come up during the process.

These considerations will help you choose the best payroll processing software, ensuring that your employees across the globe are paid the right amount at the right time. An integrated payroll system contains core HR, Time and Attendance, and expense modules that can be deployed on-premise or on-cloud or bought as a managed service offering.