There are all kinds of payroll software options that you can buy. You can get it as a one-time purchase, or you might use a software as a service model, which essentially amounts to software rental. You rent a software suite that features various payroll services, and it can make your business function a lot easier.
However, as you’re looking at complete payroll solutions and what each one offers, you should also determine whether you want to move to a cloud-based model if you haven’t done so already. There are distinct advantages if you go that route, and we’ll outline some of those below.
What is a Cloud-Based Payroll System?
Before we break down some of the reasons, you’ll want a cloud-based payroll system, we should define “cloud-based”, so you’ll know exactly what we mean. If your system uses the cloud exclusively, that means it can store data and programs on a remote system. You can access it by using any computer that has an internet connection.
You’ll Spend Less Money on IT
Most businesses these days need an IT department. IT stands for information technology. When you hear that term, you know it refers to information or data storage, manipulation, retrieval, or transmission.
IT resources can get expensive quickly. Some companies feel the need to hire an entire department to handle their information technology concerns.
If you obtain a cloud-based payroll software package, you can dedicate fewer IT resources toward maintaining or supporting it. That’s because you don’t need to install the suite. All functionality and data are available right when you log in.
You Can Access All Your Payroll Resources from Anywhere
Another reason why cloud-based payroll solution is such a hit is that you can access them from anywhere. With so many companies encouraging remote work during the pandemic, cloud-based payroll is exploding in popularity. This will also help in payroll planning to manage employee payments.
Also, you needn’t worry about accessibility if there’s a natural disaster, like a flood, fire, etc. Imagine your entire payroll network is in the cloud. Your HR staff or whoever else you’ve given access to can enter the system and make changes or look up employee data without ever needing to visit a particular brick-and-mortar location.
Your Staff Can Perform Payroll Tasks at Any Time
Another feature that’s so nice about the cloud-based payroll software model is that your staff can take care of payroll-related chores whenever is most convenient for them. For instance, maybe you need them to issue payments or apply for retirement funds.
Perhaps you want them to process timesheets or calculate tax information. During tax time, you might feel a little nervous until you’re sure you have all the proper documentation for all your employees and your business entity as a whole.
Your staff can handle all of that easily and speedily if you have instituted cloud-based software. You don’t need to wait until they can visit a physical location if you have a rush job that needs doing.
You Have Unprecedented Collaboration Opportunities
With cloud-based payroll solutions, you can grant access to as many people as you like with a few simple keystrokes. Maybe you have several different HR department staff members in multiple locations working on an urgent project. With this software in place, they can work together in real-time, and all of them will see identical data, so there’s little chance of a mistake.
You Have a More Secure System
It’s worth noting that if you set up a cloud-based payroll system, all of your sensitive documents will be much more secure than if you have a non-cloud-based model. If you’re still using servers, they can age and cease being as hacker-proof as they once were.
Also, if you have all your payroll data in the cloud, you can save it for as long as you need to and pull it up if you ever face an IRS audit or any other irregularity. This model makes both access and storage easy.
Most businesses have begun to regard cloud-based payroll software as a necessity. If you want to move in that direction, look at some of the options and determine which one you feel will serve you best.