If you're considering an ERP change, finding the right strategy for your transition is crucial for continued success. One effective way to begin is by focusing on payroll first.
A payroll-first approach to ERP migration offers significant benefits, ensuring business continuity while reducing risks associated with a full-system overhaul. Here’s why starting with payroll streamlines your ERP transition and sets a solid foundation for future upgrades.
Why Consider a Technology Change
As your business landscape evolves, your systems must keep pace. Transitioning to more dynamic and comprehensive cloud-based systems for your ERP, payroll, and HR processes is essential for growth and compliance.
These are key reasons to evaluate current operations and consider a software change:
- Shift to Cloud-Based Solutions: Cloud services are growing by over 45% year-over-year, highlighting the shift towards these vital solutions for enhanced security, scalability, and accessibility. Legacy, on-premises systems often lack the features needed to support future business needs.1
- Business and Regulatory Risk: An impressive 83% of businesses are effectively mitigating business and regulatory risks by adopting cloud-based software, highlighting the need for systems that can adapt to evolving regulatory landscapes. 1
- Growth and Expansion: Companies are increasingly adopting cloud-based software to scale and grow their operations. Many report positive outcomes in product and service growth (80%), and 74% have successfully expanded into new markets. 1 This underscores the need for scalable and flexible systems.
- Integration Challenges: Incorporating new technologies and systems can be challenging with outdated ERPs. Modern ERPs use open APIs and other tools to integrate smoothly with various applications and services.
For Microsoft Dynamics ERP Users: Impending Lifecycle Changes
Microsoft announced changes to their Fixed and Modern Lifecycle policies, affecting Dynamics GP support and update frequency. While Dynamics GP solutions on the Modern Lifecycle Policy will continue to receive support, updates will slow, potentially leaving businesses behind in terms of new features and compliance updates.
As the business landscape shifts, ensure your payroll system is prepared, whether an ERP migration is imminent or not for your business.
The Advantages of a Payroll-First Transition
The Phased Payroll Approach
Modernizing your payroll system first offers a low-risk transition without an immediate ERP overhaul. A phased-payroll approach reduces the challenges of an all-at-once migration.
Maintain business continuity by focusing on one critical function at a time, while also ensuring:
- Streamlined Integration: Migrating payroll first establishes a foundation for seamless ERP integration, enhancing compatibility and performance.
- Risk Mitigation: Prioritizing payroll ensures this essential operation is stable and functional before tackling the broader and potentially more disruptive ERP migration.
- Compliance: Transitioning payroll first allows your business to address compliance updates immediately with the new system without waiting for the full ERP migration.
- Testing and Adjustment: Migrating payroll first lets you test the new system's capabilities and acclimate before a full ERP transition. This phased approach helps identify potential problems early, allowing for smoother subsequent ERP integration.
- Strategic Planning: This approach lets you prioritize resources and planning efforts. With payroll secured, the HR and finance teams can focus their attention on the ERP migration, ensuring that each phase of the transition receives the necessary focus and resources.
Considering a transition from Dynamics GP? Check out: Mastering Dynamics GP Migration: Why a Payroll-First Approach Works Best
Building the Right Payroll Solution for Your Business
Decide between in-house or outsourced payroll based on your business's control and flexibility needs. In-house payroll offers unmatched control and flexibility, while outsourced solutions may reduce administrative burdens but come with drawbacks such as less control and potential integration issues.
In addition, it’s important to ensure your payroll partner has true integration, not just a general ledger (GL) integration, for seamless information flow between systems.
For over two decades, Greenshades has provided comprehensive payroll and HR solutions. Here are the benefits you can expect from integrating Greenshades Payroll with your ERP:
- Immediate Compliance and Efficiency: Achieve compliance and operational efficiency now, even before a full ERP transition.
- Future-Ready Solution: Greenshades Payroll scales with your business, ensuring adaptability.
- Proactive Support: Our dedicated support teams handle complex tax scenarios and compliance, giving you peace of mind.
- User-Friendly Experience: An intuitive interface enhances productivity and simplifies HR tasks.
- Cost Reduction: Optimized payroll processes reduce manual errors and operational costs.
Greensahdes’ cloud-based platform syncs seamlessly with various ERP systems, including Dynamics GP, 365 BC, and others, making us a trusted partner for any business management product. We ensure a smooth and informed transition to Greenshades Payroll and subsequently to any ERP of your choice.
In 2022, 81% of our customers chose to retain their ERP systems when transitioning to a new payroll solution. This strategic approach minimized stress and streamlined the upgrade process. Read more tips from our experts: How to Move Payroll to the Cloud.
Conclusion
Starting with payroll in your ERP migration plan ensures enhanced security, flexibility, and potentially reduces costs. A phased approach maintains continuity and allows for strategic planning.
Greenshades offers cloud-based solutions designed to integrate seamlessly with your ERP and other business management systems of choice. Our solutions ensure a smooth transition, providing the flexibility, control, and automation needed to support your business growth and evolving needs.
Contact us today to learn more about how we can help you start your migration conversation.
*For further reading, check out on recent blog on how to have a successful payroll migration: Ultimate Guide to Successful Payroll Migration | Greenshades Software
1 Deloitte. (2022). Future of cloud survey report. Deloitte. https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consulting/us-future-of-cloud-survey-report.pdf
