Cloud Payroll Services: 6 Pros of Upgrading to an Online Cloud Payroll System
The advent of cloud computing has opened up numerous cost-effective avenues to businesses, from managing sales pipelines to administrative functions like HR and payroll.
Cloud applications allow you to access software programs and data storage remotely, using a standard internet connection. This type of computing frees up resources, offers tremendous flexibility, reduces costs, and eliminates storage issues.
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What are the Benefits of Cloud Computing?
Cloud-based software offers businesses a wide variety of benefits, starting with the way it frees up resources, specifically IT.
1. Free Up Resources
Larger organizations keep their IT departments hopping, but even smaller companies and nonprofits feel the sting. Upgrades, maintenance, and security issues are a huge time-suck. A cloud-based payroll solution puts most of that responsibility on the provider, not your organization's IT department.
One of the bigger reasons organizations choose cloud payroll solutions is the flexibility they offer, which is a big deal when it comes to payroll. Typically, payroll requires contracts with multiple vendors, as well as federal, state, and local requirements (which often change annually).
Cloud solutions have evolved to include fully integrated, robust platforms that handle government compliance, attendance data, track leave banks, perform scheduling, and much more.
3. Speedy Application
This is another top reason organizations choose cloud payroll services: quick implementation. Installation is faster, so your HR and payroll departments are up and running faster.
In addition to quick installation, updates also occur more quickly and simply. Finally, the user experience is simpler, with shorter training times that get employees up to speed on the new system quickly.
4. Reduce Cost
Financial savings is probably the top benefit organizations cite when asked about making the switch to cloud. Subscribing to a cloud-based payroll service eliminates a number of expenses, including licensing fees and supporting hardware. It also leads to secondary savings, such as increased productivity and freeing up IT resources to focus on other tasks.
The introduction of cloud computing caused many people to question the security of such a solution, especially those without a full understanding of cyber security. The reality, of course, is that software hosted on site is highly vulnerable, as numerous hacks in recent years demonstrate.
Vulnerabilities with on-site hosting include identify theft, data hacks, viruses, and theft of intellectual property. When data breaches occur, organizations experience serious repercussions, especially with payroll systems containing employees' most sensitive information.
Cloud-based software includes firewalls and other safeguards to protect your organization's, and your employees', data.
6. Increased Storage and Efficiency
Even organizations with only a few employees generate huge amounts of data. As your business grows, so do your storage needs. Cloud systems allow you to change your storage space as your business needs change.
They also allow users to access the system from anywhere with an internet connection. Employees can check time banks, access benefit information, or log in using a smartphone while traveling. Of course, Management and Payroll personnel can also log in from anywhere, making scrambling to find coverage while timecard approvers are traveling a non-issue.
The Bottom Line
Cloud-based payroll services are a viable option and definitely worth a closer look, whether you're looking at upgrading your current system or starting from scratch. If your only experience is locally hosted payroll software, get some quotes today on making the switch to cloud.