diff --git a/.pre-commit-config.yaml b/.pre-commit-config.yaml
index 14109cbf..54b74a1f 100644
--- a/.pre-commit-config.yaml
+++ b/.pre-commit-config.yaml
@@ -4,7 +4,6 @@ repos:
     hooks:
       - id: black
         language_version: python3
-        args: ["software/"]
   - repo: https://github.com/pre-commit/pre-commit-hooks
     rev: v4.5.0
     hooks:
@@ -19,7 +18,7 @@ repos:
     hooks:
       - id: pytest
         name: pytest
-        entry: pytest software/tests
+        entry: python run_pytest.py
         language: system
         types: [python]
         pass_filenames: false
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 0f011a65..61c11716 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -59,10 +59,12 @@ Our project uses `black` for code formatting and `isort` for import sorting. To
 
 1. **Install Pre-commit Hooks**:
 
-   If you want to automatically format your code every time you make a commit, install the pre-commit hooks.
+   To automatically format your code every time you make a commit, install the pre-commit hooks.
 
    ```bash
-   pip install pre-commit
+   cd software # Change into `software` directory if not there already.
+   poetry shell # It's better to do it within the virtual environment of your project
+   poetry add --dev pre-commit # Install pre-commit as a dev dependency
    pre-commit install
    ```
 
diff --git a/run_pytest.py b/run_pytest.py
new file mode 100644
index 00000000..1a9ce25c
--- /dev/null
+++ b/run_pytest.py
@@ -0,0 +1,36 @@
+import subprocess
+import sys
+import ctypes
+import os
+
+
+def main():
+    """Run pytest in the software directory.
+
+    This script is intended to be used as a pre-commit hook to run the tests from the root of the repository.
+    """
+
+    # Additional setup for Windows (10 at least) to prevent issues with Unicode characters in the console.
+    # see https://www.reddit.com/r/learnpython/comments/350c8c/unicode_python_3_and_the_windows_console/
+    if sys.platform.startswith("win"):
+        # Force UTF-8 encoding in Python
+        os.environ["PYTHONUTF8"] = "1"
+
+        # Change Windows console code page to UTF-8
+        ctypes.windll.kernel32.SetConsoleCP(65001)
+        ctypes.windll.kernel32.SetConsoleOutputCP(65001)
+
+    # Define the target directory relative to this script location.
+    target_directory = os.path.join(os.path.dirname(__file__), "software")
+
+    os.chdir(target_directory)
+
+    # Run pytest with any additional arguments passed to this script.
+    result = subprocess.run(["pytest"] + sys.argv[1:])
+
+    # Exit with pytest's exit code to reflect the test outcome in the pre-commit hook.
+    sys.exit(result.returncode)
+
+
+if __name__ == "__main__":
+    main()
diff --git a/software/tests/__init__.py b/software/tests/__init__.py
new file mode 100644
index 00000000..e69de29b