Published on October 22nd, 2020 | by Sumit Bhowal0
Reasons to Move Your Payroll Operations to the Cloud with Online Payroll Software
Thanks to the World Wide Web and modern technology, Human Resources and payroll departments in many organizations are no longer limited to the back-office, attending to a myriad of the stack of paperwork. Today these departments have completely been transformed into tech-savvy business functions that take advantage of software to hire, conduct onboarding, manage time-off, remunerate, maintain records, off-boarding, and so much more. This has streamlined these important organizational functions for such growing organizations and helped them maintain efficiency.
A good many businesses are making this prudent decision and moving to the cloud for a critical business management solution, i.e., a complete payroll software. This is helping them reduce and simplify administrative tasks like those of managing payroll on spreadsheets and tracking leaves, time, and attendance manually. This in turn is relieving them to focus on issues like strategic decision making and employee engagement.
As businesses are striving to outdo their competitors, smart and efficient payroll software has become enormously crucial, and businesses have started to appreciate the fact that they cannot afford to overlook the same. For those who are still caught in a dilemma and delaying the decision, payroll management still presents itself as a bane to their ever-burdened HR and payroll departments. For them, the seemingly unending list of administrative chores is eating up their valuable time, which could otherwise have been spent on core activities.
List of problems faced by traditional management of payroll services and HR functions:
1. Side-tracked by the administrative burden
A manual payroll system is not an efficient method and requires a great deal of paperwork. This renders the whole system prone to errors dependent on human calculations and puts a humongous (which is by the way avoidable) pressure on your HR and payroll staff. Because of all this, too much of their precious time is taken up handling administrative tasks.
2. Organizational issues
Organizations have the issue of maintaining all their important payroll and employee data organized cohesively and effectively. Poor management of these records and other important documents can make the tasks of payroll management and HR functions very difficult.
3. Complex Calculations & Compliance Management
Keeping abreast of complicated tax laws is one of the top concerns in payroll management. You cannot ignore this part and need to follow accurate and timely practices when it comes to compliance. This is important if you want to avoid hefty penalties or legal repercussions for non-compliance.
4. Security Concerns
Although critical for every organization, payroll security is usually overlooked because of its complex nature. Maintaining confidential employee data and information in spreadsheets is not easy. The process is cumbersome and the information is susceptible to be misplaced at any given point in time. And, manual payroll system increases the chance of this type of data mishandling and leakage, leading to dire consequences for businesses.
A cloud-based solution to manage HRIS and payroll services is a boon to any organization. If businesses ensure the best payroll software, which seamlessly integrates different functions, the payroll teams can stay focused on their core and the HR departments can take up the responsibilities of strategic importance like increasing productivity and employee engagement.
Businesses have now started to acknowledge the fact that the payroll software is not an expense but a worthy investment.
Reasons why moving to a cloud-based payroll software could be your best bet
Cloud-based payroll software is where organizations can access, operate and manage everything about HR processes and payroll services from onboarding new hires to ensuring compliance with handling different reports and data over a remote system – with nothing but a computer connected to the internet.
All over the globe, businesses are making this switch to cloud payroll software for their HR and Payroll needs. There are multiple reasons for this. Below are the most convincing reasons that are sure to make you lend a thought in this direction:
1. Employee management
Payroll services encompass much more than just calculating and issuing paychecks. Organizations have to maintain all of their employee data right from the day of onboarding as it can affect the accuracy of their paychecks.
With an online payroll software in place, the complete information related to the employees, such as their onboarding, benefits, salary revisions, attendance, leaves, and investments, using one easily accessible centralized data source. The system also facilitates communication with the employees.
2. Empowering Employees
Payroll software lets you empower employees with anywhere and anytime online access to benefits, leave requests, pay stubs, and other personal information. This relieves the HR teams as they have to entertain lesser queries on these issues via phone calls and emails. This is very useful in driving employee engagement.
3. Core Human Resources reporting
A good payroll software makes available all the information you need, so you can get a birds-eye-view of all that matters. With the possibility of coming up with different reports, you no longer have to wade through mines of data. A cloud-based system integrating HR functions and Payroll services provides you with a wide range of reports on recruitment, employee attendance and timesheets, leaves, Payroll, Expense, and other HR assets.
4. Taking care of statutory compliance
There are a plethora of statutory compliances to look for if your organization wants to stay away from regulatory issues. And, a lot of your organization’s time and resources go into ensuring that your payroll is compliant. With Cloud-based payroll software, you can rest assured that you are adhering to all relevant statutory compliances.
Switching to a cloud-based payroll software saves your organization the headache and expenses of purchasing, implementing, and maintaining legacy on-premises systems and processes. From the financial point of view, this is sure to prove a cost-effective investment rather than an additional expense.
6. Reducing your carbon footprint
Apart from getting away with hard documents, online payroll software doesn’t require you to maintain a local server. As you save energy as well as cost, it provides you an opportunity to reduce your carbon footprint. We know this matter to you as an environmentally inclined entity.
Payroll is an important aspect of human resources. With all the above-mentioned benefits and the phenomena of all the other departments around you now being computerized, it only makes sense to switch to a cloud-based payroll solution and reap the benefits of efficient management of payroll.