Business Softwares

3 Essential Features You Need In Your Payroll Software for Small Businesses

Small businesses don’t have the same accounting department as larger corporations. Instead, they have small teams and individual team members who have to wear many hats.

A small business with a small team means that your payroll software needs to be easy to use and simple. It also needs to have specific features so you can process your employees paychecks efficiently and accurately. But what are those features?

Payroll Software for Small Businesses

A good payroll software for small businesses should cover at least these three essential features:

  1. Seamless Integration.
  2. User-friendly Interface.
  3. Built-in Benefits Tracking.

Let’s take a closer look at each of these important characteristics of great payroll software for small businesses so you can find the right one for your company.

Seamless Integration

Seamless integration is one of the most important features in payroll software for small businesses. Why? Because it’s one of the biggest challenges for small business owners.

Tackling the headache of payroll is already a difficult task. If your payroll software isn’t compatible with your company’s financial data, it can make the whole process that much more difficult and painful.

There are two main aspects of seamless integration you need to consider. The first is integration with your financial data. You need to be able to pull all employee data, W-2s, etc., and put it into your payroll software. It also needs to be able to put your financial data into the software.

If you use multiple financial systems, your payroll software also needs to be able to connect to all of them. This includes your bank account and your third-party payroll services.

User-Friendly Interface

If you’re like most small business owners, you have a full plate and aren’t the most tech-savvy person in the world. You don’t have the time or energy to learn a new software application or process. You need something that is easy to use and straightforward from Day 1.

In terms of the user interface, you want a payroll software that is intuitive and simple. You don’t want to have to look at a bunch of tutorials or training videos. You want something you can pick up and use right away.

The payroll software you choose should be easy to navigate through. You shouldn’t have to go deep into menus or submenus to find what you’re looking for. The software should be simple in structure and easy to read. It should also offer you the option to customize the interface so it works best for you.

Built-in Benefits Tracking

If you have benefits that your employees earn, such as paid time off (PTO) or health insurance, your payroll software should have a built-in tracking system.

Whether it’s tracking the amount of PTO an employee has earned or how many hours they’ve worked and what type of health coverage they have, you shouldn’t have to enter that information manually. Your payroll software should have a built-in system that tracks this data for you.

There are some payroll software for small businesses that include a built-in benefits tracking feature and some that have add-on features for those types of tracking. How does benefits tracking work? You enter the details of each employee’s benefits into your payroll software.

You can include information like the amount of PTO earned each year or how many hours an employee is allowed to take off for health reasons. You can also add details like health insurance amounts or coverage dates and types.

What is the Importance of Payroll Software for Small Businesses?

Small businesses are notorious for not keeping up with state and federal payroll requirements. This can cause serious problems for your business, particularly if you’re not paying the employees what they’re owed.

With payroll software, you can stay compliant with state and federal payroll laws, and you can make sure your employees are being paid accurately and on time. It eliminates human error, which can be a serious problem when it comes to payroll.

With payroll software, you don’t have to worry about someone making a mistake or forgetting to do something. It does everything for you, which leaves you free to focus on other important aspects of your business. You don’t have to worry about missing deadlines, and you don’t have to worry about making mistakes that could lead to serious consequences.


Your payroll software should fit the needs of your company and the way your employees are paid. It should also be easy to use and integrate with your financial data and third-party payroll services. You should also keep an eye out for the price of certain payroll software for small businesses.

Some are more expensive than others. But there are also a number of free payroll software options available if you’re on a tight budget. The most important thing is finding the right software for your business. It should help you save time and energy while accurately processing your employees paychecks.

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About the author

Sophia Britt

My name is Sophia and I live in the suburbs of Chicago. I offer real world experience to readers on how to save and smartly spend their money. Plus offer advice on organization, career, business, travel, health, home, education and life.