Why is Cloud the Right Choice for your Payroll Requirements?
There was a time when payroll meant loads of manual paperwork, spreadsheets, calculations, filings and heaps of work. It was dreaded by every organisation. Personnel attendance was marked through punch cards or through swipe cards and there were so many human errors and repeated work every month. Newer technologies and advancements have soothed the nightmare of payroll processing and have brought about a number of changes in these recent times. Payroll is no longer associated with running around departments collecting data, last minute process delays, loads of paperwork or reworks and liability to the organisation.
The once in-house payroll processing system which used a locally installed software has been replaced by the cloud based payroll software that is deployed online and is licensed to companies at a subscription. Everything has become available on the internet and access to data is more secure and easy.
Corporate online payroll services, which were initially considered a luxury meant only for the large companies, have started getting more and more supporters in small and mid-level organisations. Many SMEs have started migrating their businesses to SaaS Payroll and have shared their success stories with the others. There is an increased awareness among people about the benefits and advantages of outsourcing their payroll services to cloud based payroll system over the traditional in-house processing method. Companies have learnt that the same payroll processing can be done in a smoother and smarter way, at a lesser time as well as with more accurate and reliable results.
Why is Cloud the Right Choice for Your Payroll Requirements?
Web based payroll solutions has a plethora of benefits which would enable a better functioning of an organisation and in seamless transition of data. Let’s look at some benefits of online payroll system to enable everyone to decide for themselves.
How much does your in-house payroll process cost you?
In the traditional method, the management would require a server, a server room, extra climate controlling devices, hardware installations like routers, modems and computers, software licences and extra manpower to maintain, troubleshoot and upgrade the system as and when required. These requirements do not just lead to additional costs to the company but also a huge amount of office space. For a SME with a limited space and small number of employees, this set-up can be rather uncomfortable with no scope for growth. The cloud based payroll system eliminates all these costs and also frees up a lot of floor space. When the payroll services for a small business is cloud based, there is no additional hardware requirement and the entire support is provided by the payroll processing service provider.
Is your payroll processing solution integrated?
One of the major needs of today’s business organization is process integration. In the traditional in-house payroll processing one would require many software support and data from various sources needs to be first integrated before the computation. This leads to errors during uploading and downloading of data. Also, the process becomes very tiresome and cumbersome. The management has to decide on a variety of support solutions for the various data points like the HR, Sales, Operations, Finance and Accounting and also somehow manage all the software and upgrade it on a regular basis. All the legislative changes and process alterations have to be manually updated and saved for future. In the advent of huge organisational changes or process changes, having a cloud based payroll is very beneficial for the organisation. It ensures a seamless integration between the various departments as the whole process works on a single platform and does not require individual software packages.
How frequently is it updated?
Cloud based payroll system makes real time reporting and recording possible. All the financial data and billing, invoicing and leave tracking data made available are up-to-date and are constantly updated. This ensures data accuracy and avoids data duplication. Pulling individual data from a pile of data, removing duplicate entry, computing benefits and deductions instantly makes this system the most beneficial small business payroll solution. It also enables generation of employee payroll cards for employees without salary accounts and electronic fund transfer easier.
Is your payroll data regularly backed-up and secure?
SaaS Payroll system has an elaborate disaster recovery system in place which secures the data and ensures speedy recovery with complete backup. Creating a backup of the system and disaster recovery are two major aspects which are of critical importance for all organisations, irrespective of their size. Cloud based payroll system ensures that the huge volumes of personnel data and payroll information entered in the system is safely stored and has a complete backup in case of any data loss. Payroll data is very sensitive and needs to be secured from prying eyes within and outside the organisation. In an organisation with volumes of payroll data, there is an increased risk of data leakage and privacy breach which might cost the management a lot more than the amount paid to the payroll processing service provider for data protection.
Is your Payroll process ready for organisational growth?
This is another important question that needs to be addressed by the management before deciding whether cloud based payroll is good for them or not. Corporate online payroll services provide scope for growth and can accommodate sudden growth spikes within the organisation. The management does not need to forecast long-term growth plans and can be ready with licences and extra hardware support to help them in case of sudden spikes in business or a sudden increase in manpower.
The payroll processing service is built to be flexible in case of increased sales volumes and helps the management deal with extra servers and maintenance support. This decreases the burden of extra planning and budgeting. The entire process is intuitive, efficient and has the ability to balance the workflow. It allocates resources and storage based on the business needs, saving the management from that strain of physically planning everything.
How much is your current payroll process costing you?
Cost is another aspect a SME needs to consider before deciding to haul or keep a payroll process. While the traditional process has a lot of cost involved in setting up hardware, installations, maintenance, up gradations and troubleshooting, the cost involved in the cloud based payroll system is limited to the initial migration. There are no licences required as the software provided is web based. Data can be accessed and processed from any location and there is no additional hardware requirement for this form of processing.
The manpower required for maintaining and troubleshooting is also provided by the small business payroll solutions provider. The pay per usage system ensures that the business pays only on a usage basis and gives customised solutions as per the business requirements. The management does not need to invest in expensive software licences for forecasted business growth as the entire process is scalable and can be gradually increased as per the requirement.
These are reasons enough to convince everyone about the benefits of cloud based payroll system and why it is the best choice for their business. However, one must ensure that the corporate online payroll services provider is carefully selected from a list of top online payroll service providers to ensure that they reap the maximum benefits from their planned budget for the migration to cloud.
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