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What is payroll bureau software?

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Payroll is one of the most important departments within any organisation. It keeps track of employee information, ensures everyone is paid correctly, and maintains compliance-related records. 

 

Official April 2025 figures reveal that there were 30.3 million employees on payroll in the United Kingdom during Q1. Given the scale, nuances, and sensitive nature of processing financial information, this presents a complex landscape for payroll facilitators, particularly those that are Bacs Approved Bureaus. 

In 2021, leading investment bankers Morgan Stanley received an approximate £27.7 million fine for failing to protect information from 15 million customers. (1)

Bacs bureaus manage Bacs payments and administration for their customers. With financial services bureaus, there can be a range of considerations, risks and challenges associated with the processing of transactions for multiple clients. 

 

In this article, we explore what is payroll software, how does payroll software work and what challenges payroll software can resolve for bureaus. 

Contents

  • What is payroll bureau software?
  • 5 challenges for Bacs bureaus. 
  • How do Bacs bureaus benefit from payroll bureau software?
  • Discover efficient payroll bureau software with Interbacs. 

What is payroll bureau software?

Put simply, payroll bureau software is a solution that enables bureaus to manage multiple clients’ payroll submissions from one piece of software. Payroll bureau software is a specialised solution, purposely designed for bureaus, financial organisations and enterprises to streamline their payroll processing. 

When bureaus have access to features such as integration with other business systems, automated workflows, file checks and validation processes, as well as the option to process multiple files on multiple days, there is an increased capability to handle payroll efficiently and accurately for their numerous clients. 

5 challenges for Bacs bureaus

Every bureau or financial organisation will have its own individual challenges that shape its workflow. Typically, the following 5 challenges are commonly faced by Bacs bureaus:

  • Payroll complexities

Bacs bureaus often support clients within niche industries or those with complex payroll requirements. As a result, bureaus usually have to accommodate different pay structures and manage employee, board and contractor salary processing. 

 

Using payroll bureau software reduces the friction in the system through its flexibility with zero downtime and easy introduction of new payment frequencies. 

  • Continual deadlines

Bacs bureaus generally have to maintain multiple pay dates and deadlines per day, per week or per month. Payroll bureau software optimises the whole system through payroll automation, so that payment workflows are organised accurately and deliver payments on time. 

  • Client communication

Payroll processing through external banking systems won’t deliver the kind of information clients need to feel reassured about their payroll systems. With payroll bureau software, there is access to submission reports and additional AWACS ( Advice of Wrong Account for Automated Credits Service) reports for changes to payment details. 

  • Data protection

Bacs bureaus handle large amounts of confidential information for clients, so payroll software needs to be highly secure in its safeguarding procedures. Robust security is essential with payroll bureau software so that internal processes maintain data integrity. Permissions-based processing and segregation of duty will also mitigate potential breaches.

  • Managing workflows

Payroll software that is difficult to navigate, inflexible, and isn’t integrated within a bureau’s internal systems can cause more problems than it solves. An effective payroll software solution should be easy to use and administer by internal stakeholders.

 

Additionally, your payroll software will work best when seamlessly integrated with internal CRMs, ERPs or accounting software. Even when files are manually uploaded, the automation capabilities of payroll bureau software maintain security and ensure payments can be accurately processed. 

How do Bacs bureaus benefit from payroll bureau software?

Alongside the effortless integration of payroll bureau software into their internal systems, Bacs bureaus can benefit in several ways, including:

Flexible autonomy

Running payroll in varying frequencies delivers agility across an organisation. Some employees may need to be paid weekly or monthly, while contractors could require a range of different salary payment dates. Payroll bureau software, such as the one you can find with Interbacs, easily accommodates all of these payment requirements, as well as adding and removing customers.

Customisable services

Managing payroll through business banking could mean having to wait to make changes and increase the time it takes to process salary payments. With payroll bureau software, bureaus gain personalised services so they can adapt payment processing to their individual enterprise needs. Adding new Service User Numbers to the Bureau software can be onerous, but not so with Interbacs.

Improved reporting access

Using payroll software results in enhanced access to regular financial reporting, which helps businesses maintain compliance with industry regulations. In turn, this leads to easier internal record alignment and more accurate financial reporting reconciliation as payroll software automation improves accuracy and transparency across the payroll system. 

Effective support

When there is a delay or issue within payroll, you need supportive guidance from your payroll bureau software provider to quickly identify and resolve any problems. Good support from your provider will help you track and monitor payroll more precisely, thereby reducing the chance of errors occurring. 

 

In fact, Interbacs specialises in service commitments and offers customers full support services with a dynamic and customisable payroll software solution. 

Discover efficient payroll bureau software with Interbacs

Interbacs payroll bureau software is a dynamic and secure solution that enhances your business processes and helps you streamline payroll management. 

 

If your business has a Service User Number (SUN), then we provide you with automated payroll software to simplify your whole payroll process. As a bureau acting on behalf of multiple businesses, we work with you using payroll bureau software to optimise your operations. 

 

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.

 

Gain proactive payroll service support with Interbacs. Get in touch with our expert team for a friendly chat to discover more about payroll bureau software

Photo © by relif from Getty Images Pro.

 

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