How to choose the best payroll software for recruitment agencies

What is payroll and billing software?

So, what is payroll system software you might ask. It is essential software for recruitment agencies, helping them manage every aspect of their business from paying their temporary and contractor workers to invoicing clients. Choosing the right payroll software can be a daunting task, as there are many options available and it’s important to pick the one that best meets your needs.

Payroll and billing software is an important component of effectively managing and running a recruitment business. It can help maintain transparency in the recruitment process by allowing you to easily import and interpret timesheets and accurately track payments.

One of the key elements of the payroll system software is to minimise manual effort by automating processes, such as payment calculations and deductions to ensure efficient transactions are made. With this type of tool, time-consuming paperwork and the use of spreadsheets is eliminated while improving accuracy and clarity in financial management.

Why do recruitment agencies need payroll software?

Recruiting and staffing agencies have plenty of responsibilities, which extend beyond recruitment. One of them is payroll and billing which can be a time-consuming, stressful task on its own. Using payroll software is a great way for recruitment agencies to streamline the recruitment process all the way through from the front to back-office.

If you are a small but growing recruitment agency you may ask yourself, do I need payroll software? Well, not only does payroll and billing software track billable hours, payments and invoices, it also helps recruitment agencies ensure they are meeting their compliance and legislative requirements.

Submitting payroll manually can quickly become a major administrative burden. If errors are being created during each pay run this it is probably time to find software that can automate these processes and eliminate any human errors created by an overworked finance team.

By transitioning to an automated payroll system, your business will gain significant efficiency when it comes to payroll processing as well as regulatory compliance. Plus, with comprehensive reports available at the click of a button, it’s easier than ever get payroll software insights on your agency’s cashflow.

How to choose payroll software for your recruitment agency

When it comes to selecting the best payroll software for recruitment agencies there are several things to keep in mind to make sure the software you use meets the specific requirements of your business. You will need think about what recruitment pay and bill software is right for your organisation and your staff to ensure that you make the right choice.

It is advised to research the various software providers thoroughly, read reviews and determine how user-friendly their software is as well as if it can handle the recruitment needs of your business. Additionally, be sure to check compatibility with other software like finance and CRM solutions that you may be currently using. Asking friends or acquaintances in the recruitment industry for recommendations can be a great help too! Ultimately, your decision should come down to choosing the best fit for your recruitment firm’s specific requirements.

Areas to consider about your recruitment agencies pay and bill requirement:

• The volume of timesheets you need to process now and in the future, so if your number of workers increases or reduces your payroll system can still accommodate
• The frequency that you pay your workers, whether that’s daily, weekly, monthly or a combination of all.
• The different types and complexities of your pay rates and calculations so you can interpret time worked across multiple pay conditions.
• The legislation that you need to comply with such as IR35, Working Time Directive, holiday pay, pensions auto-enrolment etc.
• Your staff and users requirements as you need to make sure the system is easy for them to adopt and use
• What integrations you need with other software your business is using such as your recruitment CRM

When  selecting recruitment payroll and invoicing software, it is important to be aware of all the options and features available. It is worth researching a range of software models to ensure that you are getting the right package for your business needs. Always approach buying recruitment payroll software with a comprehensive understanding of your current recruitment process and take time to learn about features such as automation, invoicing reporting, and tracking functions.

It’s important to have an informed view on whether cloud-based software or locally installed software better meets the company's needs and that will help narrow down the selection of recruitment payroll software quickly and efficiently.

What are the features to look out for:

• Easy to update rates and rules engine to interpret timesheets and calculate pay.
• Online timesheet capture and submission to accelerate payment cycles.
• HMRC recognised and accredited payroll software to guarantee compliance.
• Online portals for your workers to access information and submit timesheets.
• Ready-made and custom reports to give you greater insight into your cashflow and pay and bill processes.