- Finance

It’s 2021 and Payroll is not just about paychecks

A decade ago, start-ups and small businesses wouldn’t think about investing in HR software. And it was understandable looking at the amount one had to invest to purchase software and the infrastructure to install and use it seamlessly. It then required hiring an in-house IT team to overlook the maintenance and resolve any issues related to the system to ensure smooth management of HR processes. Only large organisations could consider implementing software to improve the efficiency of HR operations.

However, the major disruption in cloud technology in recent years has made it possible for small companies to replace their manual handling of HR processes with a better option of Cloud Payroll to seamlessly manage the HR procedures. The major reason being the cost-effectiveness of cloud-based payroll which doesn’t require dedicated hardware and infrastructure, saving huge upfront costs for the organisations to efficiently and effectively manage HR activities.

Benefits of Cloud-based Payroll System

Here are the reasons why cloud-based HR system have been popular among small businesses as well as large-level enterprises.

Reduced upfront cost

Cloud payroll frees businesses from huge upfront costs including purchasing, installing, and maintaining the on-premises infrastructure required for conventional systems. For businesses, this is a huge benefit as it requires no capital expenditure, and further, it saves huge upfront costs.

Improved business efficiency

While on-premises systems work on par with cloud-based payroll, the former lacks in terms of staying updated with today’s fast-paced interconnected data-dependent world. This is one of the major reasons why organisations prefer cloud-based payroll.

Also, a cloud system allows easy access to the business owners anytime anywhere freeing payroll professionals to focus their time and energy on other equally important tasks such as recruiting new talent and tending to employee requests.

Centralised employee data

Employee data is a huge challenge as well as a responsibility for HR professionals. Unorganised employee data could affect employee paychecks severely hampering employee satisfaction. Even a small mistake such as entering the wrong date of joining would lead an employee to miss out on a whole day’s salary which is no less than a compliance nightmare for an employer.

Adopting cloud payroll software makes storing and tracking employee data hassle-free making it easier for HR professionals to manage employee recruiting, onboarding, analysing time and attendance for paycheck accuracy and employee benefits.

Simplified compliance

Cloud-based payroll, unlike legacy software, allows organisations to adapt updated compliance changes such as regulatory laws and statutory compliance. Delay or displacement of documents in complying with these regulatory laws might turn out to be an expensive mistake leading the organisation to pay fines. With cloud-based payroll, organisations can stay updated with compliance laws and other updates made by the government authorities.

Above mentioned benefits are the reasons why many organisations are adopting cloud-based payroll and to know if the cloud system will be suitable and beneficial to your organisation you can request a demo of cloud payroll and check for yourself.