Gone are the days of cluttered desks, bulky file cabinets, and filling in each pay stub. A painstakingly slow ordeal.
Now businesses are jumping on the cloud payroll bandwagon to streamline the process. You’ve heard great things but are still unsure about whether it’s the best solution for your company.
To help you, we’ve investigated the benefits of implementing cloud payroll.
What Is Cloud Payroll?
Cloud-based software means using the internet to store data and run applications. Before, you’d have to run your payroll system on your computer and store data on your hard-drive. But now, cloud-based companies have revolutionized the process. They’ve created a secure and convenient way of introducing automated payroll to businesses.
There are many accountant benefits to reap, for example:
A Single Solution
Using an array of platforms to manage HR processes is impractical and time-consuming. By using cloud-based payroll software, you can easily enter employee data to ensure it is an accurate and efficient process.
With regular accounting software, your business uses a solution that stays the same. But because technology advances rapidly, we must switch to a more scalable software.
Luckily, cloud-based payroll lets you upgrade and customize the platform to grow your business. It also has automatic updates so your IT team doesn’t have to do it.
Upgrading to a cloud-based payroll system stops any errors arising in your data collection. As a result of manually entering data, businesses stumble across issues like incorrect hours and missed clock-outs.
Using this payroll example, employees may not receive the right salary or you may calculate the wrong tax.
But with a cloud-based payroll system, you can view employee data in real-time to avoid any mistakes. You’ll have better control of managing payments and make better decisions.
As a payroll manager, the important calendar dates are tax filing deadlines and paychecks. If you don’t deliver these on time, expect disgruntled employees and a lack of team morale.
Even the best payroll company will be fined if tax dates are missed, and you may be in trouble with the law. Luckily, cloud-based software gives you updates on any changes in legislation and your status of compliance so you don’t have to worry.
Many traditional payroll systems give managers and specific users access to payroll-related data. That’s changed with cloud-based software as employees can now access their own information.
Now the team will feel more engaged in the process as they can view their time cards and make PTO requests. This is also great for HR as it means they’re not lumbered with extra administration tasks.
Further, if your team is scattered across different time zones, any employee queries can be answered quickly.
Improves Data Security
As a business, it’s your responsibility to keep employee data safe. With traditional programs, data theft, loss, and system crashes can ruin the payroll process.
Yet with cloud-based technology, you can guarantee data is safe and accessible to necessary parties.
Cloud-based systems let employees access all necessary data in an instant. Your managers can also access team information and upload documents (e.g training timetables) without running them through HR.
All you need to do is approve or decline submissions which makes the process far quicker.
Can Integrate With Other Systems
If your business relies on other software, it’s possible to integrate them. You can also integrate your ERP software with your cloud payroll system so data is saved across the board.
Easier to Share Data Reports
There is now no delay in retrieving information. This means you can plan your business strategies with updated information so your reports are 100% accurate.
Improves Record Keeping
You don’t only have to monitor employee paychecks and tax regulations. You must also keep records to protect the company against audits, penalties, and employee allegations.
Now, because of a cloud-based payroll system, employees can access records without creating more administrative work.
Features to Consider
Before choosing a payroll system, decide which features will benefit your company. For example:
You must choose a payroll system to accommodate how you pay employees.
Also, consider how often you pay your employees. For example, if you pay your employees weekly, don’t get a payroll system that costs you every time you run payroll. Aim for one that lets you pay a flat amount whatever the pay period.
If you’re worried about crunching numbers, get a payroll system that deposits and files taxes for you. This means you won’t have to stress about mistakes or any late payments.
Time and Attendance
You no longer have to nag employees about timesheets as cloud-based payroll systems streamline the process. Ask your employees to enter their hours online so you can run payroll based on their time and attendance.
As a result, all you need to do is verify their hours and then run the payroll.
You’re a whizz at your business but are still struggling with navigating the payroll system. If so, find a company that will help you set up a payroll system and provides online or telephone support.
Those Are the Top Cloud Payroll System Benefits
There are many advantages to investing in a cloud payroll system. The software streamlines the payroll process and lets employees enter their hours and check their payroll. It also relieves the burden on your HR department and reduces admin tasks.
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