When changing administration software-suppliers or even between products from one supplier, it is important to define the best time for the transition. Considerations include: do we have enough time to get familiar with the new solution? Are there consequences for my tax declarations? What does my accountant suggest? And so on.
The most common date to change solutions is the January 1st. A new year is started and in the financial administration the profit is booked from the profit and loss account to the balance. When you change software, the opening balance must be entered into the new system, as well as the remaining outstanding items.
When we look at payroll solutions specifically, January 1st is also usually the date of choice – with cumulative calculation and declarations (corrections) the main reasons behind it.
Once the decision to change has been made, manually copying the master data into the new solution is usually the greatest challenge. When you are lucky, a conversion function is available to convert all the information. However, in most cases all data is copied across – including (ancient) historical periods, employees who left the company ages ago and a host of other entirely redundant data. That said, it can sometimes be useful to transfer all the existing data that you have.
Other companies decide to start with a ‘fresh’ administration. In this case, a lot of master data still has to be copied (manually or via a conversion). It is a boring and time-consuming job. And the main problem in December and January is often the same everywhere: lack of time.
So, with the end of the year fast approaching, we wanted to support a ‘fresh’ start when changing your payroll-solution. To do this we’ve been developing an import which converts all active employees and most of their employment data. Based on the tax declaration (xml-file), we can automatically enter the employee, tax agency and other specific employment data into Exact Online Payroll.
It’s going to be available very soon. It will be built into the ‘new administration’-wizard. When you chose to set up your administration via a template for a commercial company, it is possible to select a tax declaration-file. At the moment it is only possible to select a tax declaration file for 2010, although it will of course be possible to select a file for 2011 next year.
After selecting the file and entering the company data (in the second phase, the company data will be automatically retrieved from the tax declaration as well), all relevant data is created in your new administration. The financial (general ledger links, journals, etcetera) and payroll master data is completed for you. After the company is created, the wages must then be entered (unfortunately, this cannot be retrieved from the tax declaration), as well as other payroll components like saving allowance, net allowances and other employee specific payroll components. By the way, the collective labor agreement-components are already linked (when the CLA is supported by Exact Online Payroll).
Once the bank accounts are linked to the employees, the payroll administration is ready for use. All in all it will take about 10 minutes per employee – definitely a flying start!
If you would like to know any more about this or any other Exact Online Payroll functionality, please do get in touch.