Using an outdated payroll software could be harmful to your business

 19 Sep 2018

A common struggle for payroll department or employers processing the company payroll is working with an outdated payroll software. It has even been reported that some of the software's have licenses created more than ten years ago. Sadly for those, it can be severely risky and potentially harmful to have an outdated payroll software for your payroll obligations, but if updating is too costly or time-consuming, that’s when outsourcing your payroll becomes the perfect solution.

1. Identifying if you’ve got outdated payroll software

Check your computer's operating system - Unfortunately, if you’re using Microsoft XP or Vista then you could be in danger as Microsoft stopped supporting these systems almost four years ago and that means no security or general updates for its compatible software.

2. When was the latest version supplied

Identifying when your payroll software was last supplied will be a clear indication whether it still has high security and the quickest processes. You might be shocked whether it's not been supported by new devices and therefore receiving security updates. The big question is: would you trust an outdated system if you started a business today?

3. How bad is it to have an old payroll software?

Consider most technology, it’s always evolving but would you invest in older technology for yourself? It’s like buying the first iPhone which came out in 2008 and expecting the same quality, functionality and performance as the latest version. Now think about if it comes down to a much-complicated business move, like a merger or company acquisition, can you imagine conducting a smooth transition between companies where one of them has a decade-old software?

You might also be more prone to virus seeking out your employee’s personal information. There are many ways in which hackers can interfere with your outdated software, and they can launch a “denial of service” attack that will prevent computers on your company's network to communicate with each other, or overcome the old security features and gain access to your employee's personal data.

4. Sadly, you’re not alone

A survey showed that many businesses still use outdated payroll software. The survey also highlighted that the main reason for the reluctance to adopt a new payroll software relies mostly on the challenge of changing software and the costs involved. In reality, risking your company's reputation with the dangers that could be present having an old payroll system, may cost a lot more than a change to a new software. However, the solution can be to rely on outsourcing to a payroll bureau if changing to a new software seems like an impossible task.

What can I do instead of spending out of a new payroll software?

The key factors involved in this decision is time, cost and resources. The perfect way to achieve and maximise each factor is to bring in an external payroll company which can perform all your obligations perfectly. You will not have the responsibility to perform your companies payroll when your provider with being fulfilling all your commitments for you. So you will have more time to focus on growing your business. 

Even more, the cost per an employee can mean you’ll be benefiting from this service for years before your overcome the cost of a new payroll software and hopefully, your business will be even bigger in the years to come so the payroll process will only become more complicated. In addition, no more payroll department or reliance on yourself, you’ve got a team of qualified professionals fulfilling all your obligations. 

Act smart and prevent waiting for a problem with your payroll software before you consider alternatives, an initial conversation with our payroll professionals can get you on the right track today.