Payroll Automation: Guide for Accountants, Bookkeepers and Payroll Bureaus

Payroll is a topic that sparks mixed feelings. According to Employment Hero's State of Outsourced Payroll report, opinions on payroll range from viewing it as a revenue-generating activity to a 'necessary evil' that isn't profitable. The crux of the issue lies in the intricate nature and time-consuming process of payroll tasks. This guide covers everything you need to know about payroll automation software and systems, from the types of payroll software on offer to complete process workflows.

Contents:

• Important areas for consideration
• Types of payroll software
• Choosing an automated payroll software
• Limitations of payroll management systems
• Complete payroll process workflows

Important areas for consideration

For a proactive approach to the payroll process, consider these four crucial areas. Ask yourself the below questions before making a change:

Client experience

It's no secret that clients' expectations of accountants, bookkeepers, and payroll providers have evolved in recent years. With clients seeking greater support and more regular communication, it's vital to recognise how changes to your payroll system affect not just your team, but also your clients. Key considerations:

• Are the changes we're making to the service adding extra value to clients?
• Will this automation (or change in process) make clients' experience easier and/or more enjoyable?
• What input do we need from clients?
• How user-friendly are the tools we're using for clients?
• How and when do we keep clients informed?

Profitability

Opting for automation not only saves hours in the long run but also streamlines operations. However, it's crucial to choose software wisely to prevent rising costs from multiple tools. Plus, reviewing your prices to ensure they reflect the value delivered to clients can be a game-changer! Key considerations:

• Will this automation and/or change in process make payroll easier and more controlled?
• Does this software save us time and resources?
• Does the value outweigh the cost of the software?

Compliance

As an accountant, bookkeeper, or payroll manager, you'll know it's crucial to ensure that any new payroll software you introduce is compliant when it comes to handling critical employee data. Key considerations:

• Is this software recognised by HMRC?
• Does this software safely store information for long periods?
• Are there any security risks associated with choosing this software?
• What are the data protection and privacy policies of this software?
• How do we manage errors and changes in legislation, and how does this software support this?

Team experience

It's essential to consider how automation and software changes will affect the team as a whole. Key considerations:

• How will this new software impact the workflow of our team?
• Will it take away tasks from employees, freeing up their time for more value-added work?
• How easy is it to onboard and train new team members on the software?
• Is there support available, such as training and online resources?

Types of payroll software

There are various types of payroll software available on the market, catering to different business needs. Some common types include:

• Desktop: This type of desktop payroll software is installed on a business's computer servers and is often managed by in-house IT staff.
• Cloud-based: With cloud payroll software, businesses can access the system remotely through an internet connection, making it convenient for companies with multiple locations or remote employees.
• Specialised: There are also specialised payroll software designed for specific industries or businesses with unique needs. This includes cloud-based payroll software for accountants and payroll service providers, where the requirement is payroll software for multiple clients, potentially with multiple entities.

Choosing an automated payroll software

Not all payroll software is created equal, and it's essential to choose one that best fits your business's needs. Here are the best payroll software providers for 2024.

Limitations of Payroll Management Systems

• Learning Curve: Your team and your clients might require training to get up to speed with new payroll software, it's important to understand what training and support is offered by the provider. 
• Compatibility: Payroll software might not integrate with your existing accounting software out of the box and may require work to get key information flowing seamlessly between systems. Before diving in, take a step back and check if the tools you're eyeing are a good match and understand how the implementation process will go.
• Payments: Payroll software doesn't usually make payments for you. This is often the part with a lot of risk, consider how you can automate payments to eliminate manual errors and protect client funds.

To overcome the limitations of payroll management systems, many online software providers integrate with bulk payment and accountancy software, facilitating an end-to-end payroll process.

Integrations can ensure that once payroll is processed, the data automatically flows into the accounting software, thus eliminating the need for manual data entry and reducing the risk of errors.

Specifically, choosing a system that integrates with Telleroo's bulk payment software means that after payroll has been processed, payments are ready to be sent to employees' bank accounts, streamlining the process. 

Complete payroll process workflows

Here are some examples of payroll automation workflows. These workflows show how you can integrate leading payroll software with Telleroo to automate the end-to-end payroll process, right through to salaries landing in employees’ bank accounts.

Workflow 1: Xero Payroll & Telleroo

Here is an example payroll workflow using Xero Payroll and Telleroo:

1. Add employee details in Xero: Manually add employee information such as name, salary, bank account and tax information into Xero.
2. Timesheets & Leave: Clients' employees can submit their timesheets for approval and request leave in Xero. All your client needs to do is hit Approve.
3. Automated payroll calculation: After inputting employee details, Xero's automated payroll feature effortlessly crunches the numbers for payroll. From benefits to salary sacrifices and pensions, it's got you covered! It handles statutory calculations like maternity pay too!
4. Post payroll in Xero: After you're satisfied with the month's payroll, go ahead and post it in Xero manually.
5. Sync Xero Payroll: In Telleroo, simply hit 'Sync Xero payroll' to watch your payroll appear as a pay run. Payee details are fetched from Xero.
6. Pay run approval: When added to Telleroo, the pay run will automatically be set to the 'Awaiting Approval' status. The system automatically notifies any Approvers you have set up (Clients/Team) that there is a pay run awaiting approval.
7. Sending payments: Once approved, the pay run will automatically send payments on the scheduled date.
8. Real-time updates in accounting software: Telleroo and Xero automatically sync, providing real-time updates to your accounting software. Making for one-click payroll reconciliation.

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Workflow 2: Employment Hero & Telleroo

Here is an example payroll workflow using Employment Hero and Telleroo:

1. Add the team: Dive into adding employee details like names, salaries, bank accounts, and tax info into Employment Hero!
2. Employees log their hours: Employees can easily track and submit their hours worked through Employment Hero's time tracking feature.
3. Approval by managers: Once the hours are submitted, managers can review and approve them directly in the platform.
4. Automated payroll calculations: Employment Hero automatically calculates wages, taxes, and any other deductions based on the approved hours.
5. Send payment file: Click 'Send payment file' in Employment Hero. This will load a side menu for Telleroo, where you click Validate and Send. This will automatically create a pay run in Telleroo under 'Awaiting Approval'.
6. Approve pay runs: Telleroo emails Approvers (Clients/Team) that there is a pay run awaiting approval. Click 'Approve Pay Run'.
7. Payments sent: Once the pay run is approved in Telleroo, payments are sent to employees' bank accounts on the designated pay date.
8. Updated accounting software: Telleroo and Employment Hero automatically sync with Xero, keeping your accounts up to date.

Workflow 3: Staffology & Telleroo

Another example of a payroll workflow is using Staffology and Telleroo:

1. Include employee info: Add in the details of your team members like their names, salaries, bank account, and tax details into Staffology.
2. Timesheets: Employees can easily submit timesheets through Staffology. For this, you will need Staffology HR alongside Staffology Payroll software.
3. Automated payroll: Staffology automatically calculates wages, taxes, and any other deductions.
4. Post payments: In Staffology, go to Reports -> Payruns -> Required payments. Choose the period you want to send and click 'Post Payments' and 'Make Payments'.
5. Pay run creation: The pay run is now automatically created in Telleroo. You can click 'View Submission' in Staffology to be taken directly to the pay run in Telleroo.
6. Approve pay run: Approvers will now be notified about the pay run, and be asked for approval.
7. Send payments: After the payroll gets the green light in Telleroo, the money will be sent to employees' bank accounts come payday!
8. Updated accounting software: Telleroo and Staffology also sync with popular accounting software such as Xero, ensuring accurate financial records.

Workflow 4: SafeHR & Telleroo

Another option for payroll management is using SafeHR and Telleroo:

1. Employee data synced: If you have both SafeHR software and payroll software, employee data will be synced from the HR software. Alternatively, you can manually add employee details.
2. Payroll setup: Employers can easily set up automated payroll calculations and deductions based on company policies and employee information.
3. Pay now: When you 're ready to pay your employees, simply click 'Pay now' on Step 3 in citrus HR's payroll creation workflow. The payroll will be automatically sent to Telleroo for processing.
4. View & approve: Approvers can easily view and approve the payroll in Telleroo, ensuring accuracy before payments are made.
5. Send payments: Once approved, payments will be sent through Telleroo to employees on their designated payday.
6. Integration with accounting software: SafeHR integrates with popular accounting software such as Xero, Quickbooks, and Sage for seamless record-keeping and accurate financial reporting. Telleroo integrates with Xero.

Workflow 5: FreshPay & Telleroo

Finally, another popular payroll solution is FreshPay which also integrates with Telleroo:

1. Add employee info: Add in the details of your team members like their names, salaries, bank account, and tax details into FreshPay.
2. Automated payroll management: With FreshPay, enjoy the convenience of automated calculation of wages, taxes, and various deductions, streamlining your payroll processes.
3. Send to Telleroo: When your pay run is finalised, you will see an additional button Send to Telleroo. Select which employees you would like to include in the pay run and click 'Send'.
4. Approve payments: Approvers can easily approve the payroll in Telleroo, ensuring accuracy before payments are made.
5. Send payments: Once approved, payments will be securely and efficiently transferred through Telleroo to employees on their designated payday.
6. Integration with accounting software: FreshPay integrates with Xero, Quickbooks, and Sage for seamless record-keeping and accurate financial reporting. Telleroo also integrates with Xero.

Other payroll software & Telleroo

If your payroll software is not a featured integration, you can directly import payroll pay run files into Telleroo through a CSV file. This allows you to continue using your current payroll software while benefiting from the streamlined payment processes of Telleroo.