Managing payroll efficiently is crucial for any organisation, but for UK payroll bureaus and accountants, it’s a mission-critical task. With frequent tax updates, compliance responsibilities, and the need for accurate employee payments, having the best payroll software is no longer optional; it’s essential.
But with so many options available on the market, how do you choose the software that meets your firm’s unique needs while ensuring maximum efficiency? This guide will walk you through the key considerations, features, and best practices to help you choose the best payroll software for your firm.
Why choosing the best payroll software is essential
Payroll software is designed to simplify and automate the complex processes involved in paying employees, calculating taxes, and staying compliant with regulations. Without it, firms would have to manually track hours, calculate earnings, apply tax deductions, and ensure compliance with regulations like Real Time Information (RTI) and GDPR. This not only takes time but increases the risk of costly errors.
For UK payroll bureaus and accountants, choosing the best payroll software is especially crucial as it impacts not only your efficiency but also your clients’ trust in your services. The right software empowers you to save time, reduce mistakes, and ensure compliance with UK-specific tax and employment regulations.
Before you make your choice, here are some critical factors to consider.
Key considerations when selecting payroll software
-
Understand your payroll needs
Before exploring software options, you need a clear understanding of what your firm requires.
- Workforce size and structure
Are you managing payroll for SMEs with small employee counts, or are you handling large firms with hundreds of employees? Understanding your client profiles will help identify a solution that can handle your workload effectively.
- Frequency of payroll processing
Different software supports different payroll schedules. Do you need to run monthly payrolls, or do your clients require weekly or biweekly processing? Ensuring the software supports your scheduling needs is essential.
- Compliance with UK legislation
Staying compliant with HMRC regulations and local tax laws is non-negotiable. Your payroll software must be equipped to handle RTI reporting, auto-enrolment pensions, and the latest tax band updates effortlessly.
*Are you prepared for the 2025/26 tax year? Here’s all the payroll changes you need to know about.
-
Essential features to look for in payroll software
The best payroll software should offer a suite of robust features. Here are the essentials to prioritise:
- Automated payroll processing
Reduce manual errors and save time by automating payments, tax deductions, and reporting processes.
- UK tax compliance management
Features like automatic tax calculations, National Insurance contributions, and RTI submissions are crucial.
- Payment flexibility
Ensure the software supports multiple payment methods, such as direct deposits, cheque payments, and third-party integrations.
- Integration capabilities
Choose payroll software that integrates with accounting software and pension providers.
- Self-service portals
Employee and employer portals streamline payroll administration by enabling easy access to payslips, seamless updates to personal details, and hassle-free leave requests — saving valuable time. While not essential for processing payroll, these tools offer significant benefits for payroll professionals and their clients.
- Local legislation compatibility
Your software must align with UK tax laws, labour regulations, and pension auto-enrolment requirements.
*Wondering where you can find a solution with all this and more? Don’t worry – we’ll introduce you to BrightPay shortly.
-
Compare payroll solutions
Once you know your needs and required features, start comparing different payroll software options.
- Cloud-based vs desktop software
Cloud-based payroll software offers advantages compared to desktop software, such as accessibility from any location, real-time updates and enhanced data security – which is ideal for accountants managing multiple clients.
- User reviews and case studies
Research what existing users have to say about the software. Look for testimonials from other UK accountants or payroll bureaus to see how well the solution performs. Sites like Trustpilot and Capterra are a great place to begin your research!
- Proven track record
Stick to software solutions with a history of delivering reliable and consistent performance in the UK market.
Imagine this: You’re deciding between a solution that has been voted the best payroll software in the UK for four consecutive years and a competitor without this track record. Which one would you trust with your business? The choice is clear.
*Did we mention BrightPay has won Payroll Software of the year at the LUCA Awards in 2024, 2023, 2022, & 2021?
-
Cost considerations and budgeting
Pricing is a pivotal factor in your decision but remember it’s not just about the headline fee.
- Pricing structures
Some software charges a flat fee, while others may charge per employee or per payroll run. Evaluate which structure is cost-efficient for your client base size.
- Hidden costs
Watch out for additional costs like customer support fees, software updates, or third-party integrations.
- Long-term savings
Focus on the return on investment. Software that saves time and reduces errors will pay for itself in the long run.
*Learn how to maximise ROI on your accounting tech.
-
Compliance & security factors
Cloud-based payroll platforms are gaining popularity for their compliance and data security features.
- Legal compliance
Choose cloud-based software. Why? designed to keep you compliant in real time — no manual installs or updates risking non-compliance.
- Data security
Cloud systems use encryption to safeguard sensitive employee and financial data, bolstering your data security.
- Backup and recovery
Cloud solutions sync in real-time, providing automatic backups and a reliable disaster recovery plan — ensuring your data is always protected and giving you peace of mind.
-
Customer support & usability
No matter how feature-packed your software is, poor usability can be a deal-breaker.
- Ease-of-use
Look for an intuitive interface that doesn’t require extensive technical training. Easy onboarding processes save time during setup.
- Available support
Opt for software providers with robust customer support via email, live chat, and phone. Resources like video tutorials and knowledge bases are also helpful.
-
Final steps before making your choice
- Free trials & demos
Many software providers offer free trials. Use these to test the interface, features, and overall compatibility with your workflows.
- Plan for the Future
Pick a solution that can grow alongside your business. Look for scalable options with the flexibility to handle increasing client or employee numbers.
BrightPay: The best payroll software for your firm
Looking for a reliable, compliant, and user-friendly payroll solution? BrightPay ticks all the boxes and more. By operating on the cloud, BrightPay enables seamless HMRC compliance, advanced automation, and secure data storage. The software simplifies tax calculations, integrates with accounting tools, payment platforms and pension providers, and offers employee and employer self-service portals that are packed with beneficial features to save you and your clients time — all while ensuring GDPR compliance.
*Currently using Sage Payroll? Learn why BrightPay is better.
The best part? Making the move is easy
At Bright, exceptional customer support comes as standard — at no extra cost. Plus, our dedicated BrightPay migration team ensures a seamless, stress-free payroll transition, so you can focus on what matters most.
Here’s what our users have to say:
“Fantastic service and help with setting up BrightPay payroll. Transfer was all done for my client with no problem or delay caused. Excellent after service with any ongoing help I need. BrightPay staff know their products and value for money.” – Sian Croxall
“When you have done something idiotic and screaming for help, it is so absolutely lovely to have a kindly person like Caroline at the other end of the phone to calm you down with a little gentle humour, then quietly and efficiently provide you with just the solution you needed. Genuinely the nicest bunch I have ever dealt with, and the software is user friendly!” – Shelley Elsden-Smith
Switch to BrightPay today and find out why it’s the best payroll software on the market.
