Managing payroll within your business can be a complicated process. It’s likely that your payroll structures encompass more than paying employees’ salaries, but also managing benefits, pensions and taxes to maintain legal and regulatory compliance.
BACS Payroll software instantly removes the friction and administrative burdens of these processes, with timely and accurate workforce payments that minimise error and create time efficiencies.
SMEs, Bureaus & Enterprises across the UK have multiple workstreams to manage, so gaining a streamlined and precision-led payroll system can make all the difference. With 30.3 million payrolled UK employees in March 2025, it makes sense to automate payroll.
According to the latest statistics, nearly two thirds of British businesses outsource their payroll to a payroll bureau or software provider. In this article, we explore exactly what is BACS payroll software and examine the boost your business can gain from the benefits of payroll software.
Contents
- What is payroll software?
- How does payroll software work?
- 5 payroll software business benefits.
- Discover efficient payroll software with Interbacs.
What is payroll software?
BACS Payroll software is a software is a solution that allows organisations, accountancies and bureaus of all scales to pay their employees their monthly salaries on time, safely, whilst easily integrating with accountancy software and internal systems. The flexibility that payroll software offers means that it’s suitable for businesses of all sizes and in any industry.
There are two main types of payroll software:
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On-premises payroll software
On-premises payroll software is hosted and managed on-site on a company’s own servers. This type of payroll software can give a business a high level of control over their payroll process, while also supporting data privacy albeit with some DR concerns.
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Cloud-based payroll software
Cloud-based payroll software is hosted on remote servers, online. This is the more prevalent and preferred option. There is typically a minimal initial investment in terms of installation and secure remote access capabilities. Organisations can also benefit from increased accessibility, with flexible use for remote teams, plus robust security measures that increase data safeguarding.
How does payroll software work?
Payroll software processes key employee information, such as name, bank details (account number and sort code) and calculated net pay, to send salary payments to BACS for regular paydays. This information is synthesised with data from your internal CRM/ERP or Accountancy Software to ensure each employee’s net pay, tax and other benefits are processed accurately.
Your payroll software may also make reports at the end of each payroll period or month so that you can analyse payroll data for future refinements and to ensure continuity. These records can also help you to keep compliant financial documentation.
5 payroll software business benefits
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Time savings
Managing payroll can be extremely time consuming for you and your HR teams. Additionally, using an inflexible or dated payroll system can slow create unnecessary barriers to cross-business improvements or support bespoke or irregular salary payments such as contractors. With bespoke, automated and efficient payroll software, these issues are eliminated.
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Cost efficiencies
Maintaining an entire payroll system in-house can be time consuming, difficult to administer or report on, lack integration with internal systems and run this effectively. Partnering with a BACS payroll bureau software provider means that you’re reducing costs, introducing customisation and integrating the most effective payroll system without hiring an internal team.
- Information security
Human error, Data loss, business bank account siloes or the risk of a data breach are now some of the top concerns for UK businesses. A BACS payroll bureau solution will afford advanced security methods such as encryption of confidential information, approvals workflows, file validation, reporting and the use of secure systems that comply with GDPR regulations and compliance requirements.
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Scalable option
When you work with a payroll software provider, you’ll notice how flexible your process actually is. There is the ability to scale up and down with your employee teams, so that your payroll system aligns with your business as it adapts to future conditions.
Discover productive payroll software with Interbacs
Interbacs payroll bureau software is dynamic and secure. In the UK, around 80% of employees are paid by Bacs direct credit. With payroll being so critical, the right solution is crucial to your business.
Interbacs' Bacs approved bureau software is ideal for enterprises who manage Bacs payments for customers. Unlike a bureau managed service, Bacs approved bureau software empowers and supports companies such as established financial service providers, accountancies and payroll bureaus.
Interbacs payroll bureau software allows businesses to submit files to Bacs and manage multiple files from one intuitive and secure platform with bespoke customisation and expert support. Here at Interbacs, we ensure your payments are completed in time and with advanced accuracy.
Looking for payroll service support? Get in touch with our expert team for a friendly chat and to discover more about payroll bureau software.
Photo © by Nastassia Samal from Getty Images
