Important Consideration for Payroll System Implementation

While selecting the in-house or outsource payroll system, business management should consider a few key points that are eminent to establish dependable payroll and human resource system departments. Keeping in mind the specific considerations of your business matters, pick the payroll that can fulfill your expectations to the maximum as well as provide credibility through various features. It will not just impact your daily routine payroll process, but also contributes to the success level of your company. At the time of implementation, you need to analyze following factors.  factors. 

Time of conversion

Thinking of the conversion to latest payroll system needs proper planning and timing to be implemented. Certain kinds of organizations find a particular time of year, more easy to convert their manual payroll system to an automated system. Most of the enterprises find it easy to transfer to new human resource systems and payroll process at the end of the year to make a new beginning for the new year with fresh management. For a quick change, you can also implement the system at the start of the new quarter, but it will still need a conversion of internal details once again at the start of the calendar year.

Resources required

The amount of data to be transferred from one payroll system to another would be sizeable that needs considerable resources and manpower. Plan and arrange the resources before you start implementing the new system. The same criteria will apply while converting to a new human resource system in any organization. Dedicate yourself, staff members or hire new resources for accurate and reliable data entry to avoid any discrepancies. 

Transferring data

Another important factor that can settle or damage your management system is data transfer step. Make sure that transition of data from one payroll system to another is done precisely without any gap or inconsistency. Find out the way of transferring data whether you need to enter all the data manually or it can be transferred automatically to the other side through easy-customizable link? After convenient and smooth transition of data, run reports on both system to ensure the accuracy of data.

Running systems side by side

For large organizations, it’s recommended to run old and new systems side by side from one to three months to check the accuracy of data and operations done through the system. The discrepancies can be identified and eliminated by running operations and reports to cross reference the payroll system history, earnings, deductions, tax calculations, etc. A slight difference can affect the whole management of payroll and human resource system process. 

Integration capability

Before taking the service of any management system vendor, make it clear that how much the payroll is capable of integrating with human resource system or accounting system in the organization. It would be highly beneficial if payroll, HR and ledger system is well integrated. The advantages would be threesome by eliminating duplicate entries from diverse systems in the management section to reduce errors, lessening the paper work and an extra load of managing the manual files plus appropriately integrated reporting.