Expert advice on how to defend your payroll business from the most common cybersecurity threat
And 5 Considerations Before You Do
March 3, 2023
If you’re reading this, there’s a strong possibility you work in a payroll department (90% chance as a guess), and you’ll know what umbrella payroll software is. So, you’ll understand all the nuances and shortcuts that come with working in a payroll department.
It’s a busy job, and sometimes underappreciated! The responsibility of a small team paying hundreds, if not thousands, of people their wages would make most walk away. In the case of payroll, with great responsibility typically comes increased workload and complication. Especially if the department doesn’t prioritise process efficiency.
Archaic spreadsheets. Difficult processes. Those Friday afternoons where EVERYTHING goes slightly wrong. Sound familiar? These pain points are half of the reasons why MyDigital came into existence (for the other half, you’ll have to ask our CEO, John).
The question is though, would technology benefit you, your department and your business?
Read on for our take on this.
First up, what is Umbrella Payroll Software?
For those of you that know the answer, skip this bit. Anyone wanting a detailed description, read on!
In a nutshell, umbrella payroll software is a type of computer program that allows people like your good self to manage payroll and employee payments. It can also help you manage the full suite of business operations umbrella companies typically face. It will include a range of features that help businesses handle those tasks that take a lot of manual input. Think:
Amongst many other (great) features*(you can see some of ours here).
All of which are of course brilliant but, what about the benefits? Like with any tech, umbrella payroll software saves you time. Lots of time. It also significantly reduces errors that can occur with manual processing. Making you and your company quicker, faster, smarter freeing you up to work harder on other tasks.
Tax and HMRC compliance are two other HUGE benefits when it comes to implementing umbrella payroll software. And in the world of complex payments, being completely compliant isn’t a nice to have. It’s a necessity.
Finally, reporting becomes much easier when the software you’re using makes sense of the data. It gets even better when you gain detailed analytics on your payroll processes.
In summary, there’s a lot to gain when you embrace umbrella payroll software in your business.
Should I buy Umbrella Payroll Software?
Any purchase decision needs to be ratified (this blog is for payroll managers, FDs and people who love ledgers – so ratification is par for the course). But there are some key points to consider if you’re looking to either implement or switch out your existing umbrella payroll software.
Firstly, think about your size. Online payroll software works better with bulk. What does that mean? Think of economies of scale – the more you buy, the more you could theoretically reduce the unit price. The same principle applies to this, the more you process, the more you’ll see those efficiencies paying dividends.
Another point to consider is integration with your existing systems. Is your shiny new cloud-based payroll software compatible with what you have in play?
Overall, umbrella payroll software can be a valuable asset for businesses, as it can help to automate many. It’s a popular choice amongst umbrellas and recruiters. But when the time comes to update those archaic systems that have served you so well, here are 10 points you need to think about before making that decision.
5 Reasons To Invest In Umbrella Payroll Software
This is easy to write, in fact the issue we had was limiting the list to ONLY 5 benefits as there are so many operational efficiencies! We’ve whittled it down to our 5 key benefits of Umbrella Payroll Software:
1. Automated Process: By automating the payroll process, you’ll save significant time that would otherwise be spent on manual calculations and data entry. Always a bonus.
2. Time-Saving: By automating the payroll process, you’ll save a significant amount of time that would otherwise be spent on manual calculations and data entry. Always a bonus.
3. Increased Accuracy: Umbrella payroll software eliminates the risk of human error (we all make them) and ensures accurate calculations. This results in fewer errors and improved accuracy in payroll processing, which means employees receive the correct pay, you avoid penalties for incorrect payroll tax submissions, and everyone wins.
4. Cost-Effective: Umbrella payroll software can reduce the need to recruit more people to do manual jobs.
5. Compliance: Umbrella payroll software is updated regularly to ensure compliance with current tax laws and legislation. That’s one less critical thing to do from your ever-expanding list of jobs.
5 Considerations Before You Do
We’re an honest bunch at My Digital, and our software might not be the right choice for your business right now. So, we want you to understand the potential challenges you could face when implementing a new system before hitting that Book A Demo button if any of the following apply:
1. Initial Investment: Implementing umbrella payroll software requires capital, which can be challenging for small businesses or businesses with limited budgets. That being said, cost/benefit analysis may demonstrate exactly why such an investment is right for you and your business.
2. Resourcing the project: You may only be a very small team, or you’re already so busy you don’t know how you will implement and learn a new system alongside all your normal day-to-day duties? Success of these projects requires time and effort so you should consider carefully how you will resource during the implementation phase. Consider identifying a project manager (whether internal or external) who is tasked with this deliverable and ensure that teams are aligned with the timescales.
3. Integrate or replace: No-one knows your business processes better than you. Some areas may already be really efficient, others, not so much. You need to make a business wide decision on either adopting the software as a whole, or whether elements of it could work with what you’ve got so considering integration capability is key. Our technical team can advise you on this, but ultimately it boils down to your business.
4. Technology Capabilities: Let’s make it clear, we love tech. But not all companies have the right infrastructure to jump right in and launch a whole new system. Consider the new systems requirements and if your existing infrastructure needs upgrading? Will you need faster broadband or onsite premises for servers? Is your hardware ready for cloud software? Software providers will be able to tell you minimum requirements for their systems to operate effectively, make sure you fully understand this and have the infrastructure ready to go live.
5. Data Security Concerns: Storing sensitive payroll information in software can raise data security concerns. DO YOUR HOMEWORK on this. Put us, or any other brand, through its security paces. Your data is too important to avoid doing that.
Is Umbrella Payroll Software On Your Horizon?
We’ve hopefully given some balance to good, bad and not that great elements when it comes to implementing a software like My Digital. It’s a big decision, but one that most umbrella businesses have to make when they get too big for manual entry.
But we work with some of the most ambitious umbrella companies across the UK. Ones that embraced technology and are reaping the benefits (see above). Making the decision to switch or implement software and picking the right partner can be very exciting and might just be the difference when it comes to making a success of scaling up. Just remember to consider the challenges embracing operational improvement can bring.