We often find that clients are using a payroll software package that’s not the best fit for their requirements – often because they aren’t aware of the latest options available to them.
Systems that may have served you well in the past may not be fit for purpose today.
Businesses need payroll software that can automate processes and provide you with real time information, ensuring compliance with HM Revenue & Customs (HMRC) as well as offering valuable insights into your business.
Here are the essential features your payroll software needs to have in 2025.
Real Time Information (RTI) automation
HMRC requires all employers to report payroll information at the time of each payroll run.
This Real Time Information (RTI) mandate can be very time-consuming if completed manually.
Software that automatically generates and sends RTI data directly to HMRC helps you remain compliant without the need for manual data processing.
Integration capabilities
Your payroll software shouldn’t be operating in a vacuum – instead, it should be integrated with your accounting software.
This will enable the automatic transfer of payroll data to relevant financial records and accounts, ensuring your bookkeeping and accounts are accurate and up-to-date.
In addition, being able to integrate your payroll software with your pension software can help you meet auto-enrolment pension requirements through automations.
Automatic, customisable reporting
Accurate payroll reports are hugely important for ensuring statutory compliance and providing useful insights.
Your payroll software should be able to generate payroll reports automatically based on the recent data, while also being customisable to allow you to track key metrics.
Customisable reporting enables you to tailor payroll data according to your specific needs, providing information on your payroll costs and tax liabilities.
With these insights quickly and easily accessible, you’ll be able to make better, quicker financial decisions.
Data security
The sensitive nature of payroll information means you need strong data protection.
Your payroll software should offer advanced security features and data encryption to keep information secure and ensure compliance with General Data Protection Regulations (GDPR).
Cloud-based
Just as cloud accounting software is the way forward for any future-focused business, cloud-based software is essential for managing your payroll.
By moving your payroll to the cloud, you’ll have the flexibility to access information from any location.
You’ll also be able to work, create, and share information with colleagues in real time, as well as work on the same files simultaneously.
Automatic updates
Payroll regulations change regularly, so what your software needs to do to ensure you remain compliant will change, too.
The best payroll software solutions update automatically to incorporate legislative changes and keep your payroll systems compliant – saving you valuable time and energy.
Scalability
As your business scales, your payroll software should be able to scale with you.
Make sure your chosen software has the capacity to accommodate a larger and more complex payroll as you grow your business and expand your team.
Payroll software solutions with Grunberg
At Grunberg our Payroll team are here to help you choose the right payroll software for your business.
With our payroll expertise and experience in training clients to use software, we’ll be able to set you up with payroll software that’s fit for your business and frees up your valuable time – enabling you to focus on achieving your business goals.
Ensure your payroll software is fit for purpose with Grunberg & Co. Contact our cloud accounting team today for expert support and guidance.
