Last Updated on November 22, 2023 by asifa
These days, many business entities are considering what kind of payroll software to use. Virtually every company uses it because without payroll software, it makes it much more challenging and time-consuming for their HR department to execute payroll-related tasks.
The question some companies are asking themselves is whether they want a cloud-based payroll system or whether they’d prefer a server-based one. Let’s discuss switching over from a server-based payroll system to a cloud-based one, and also whether it’s worth it to do so.
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Are Servers or Cloud-Based Payroll the Superior Business Solution?
In the old days, retaining servers for payroll made a lot of sense. If you kept your servers in a secure facility and only allowed authorized individuals to access them, you could be fairly certain that no one unqualified could peruse your sensitive data. However, time marches on, and in recent years, more advanced payroll services have hit the market, with cloud-based software foremost among them.
There are multiple reasons why cloud-based software makes sense as a payroll solution versus handling those tasks via servers. For one thing, there’s the accessibility issue. Your HR department personnel can interface with the IRS during tax season via remote locations if you have a cloud-based software suite in place.
If you stick with servers, you also have to worry about natural disasters like fires or floods. In some parts of the country, you might even have to concern yourself with tornadoes or earthquakes.
If you have a cloud-based payroll setup, there’s no danger of your servers being damaged. You can rest easy knowing your payroll functionality is always operating at one hundred percent capacity.
Why is Cloud-Based Payroll Software So Effortless to Use?
Implementing cloud-based payroll software also makes many tasks nearly effortless. For instance, having it ready means your HR staff no longer needs to search for scattered employee data. You can see how much leave a particular worker has taken, how much they’re making per hour, what certifications they have, or what benefits they’re receiving.
With cloud-based payroll software, your HR system is all in one place. You won’t have disparate entities trying to interact when they weren’t necessarily designed to do so. For example, your attendance and leave management systems will both be in the same place.
Are There Any Additional Benefits When You Switch?
In addition to the reasons we already mentioned, if you’re thinking about a cloud-based payroll system, you should know that a software as a system setup is generally much cheaper to maintain than in-house servers. That’s because if you’re still using in-house servers, you might need to hire an entire IT department to care for them if anything goes wrong.
If you ever have problems with your cloud-based payroll software suite, you can easily contact the provider. As you look at the different software setups that are out there, you can be sure to select one that has 24/7 customer support.
Because of the advanced algorithms built into this type of software, it’s not very likely that anything will go wrong with yours. However, you can reach out to the customer support team and fill them in on all of the relevant details if it does.
You can usually reach them by phone, email, or through an online chat feature. They will look into it and get back to you, and it’s always in their best interest to do so quickly. They’ll be eager to retain you as a client, and they know strong customer feedback will help boost their popularity.
Best of all, this technical support costs you nothing extra, because it’s all included in the monthly software fees. You won’t need to have an IT person on salary or even an entire IT department.
When you switch to a cloud-based payroll structure, you’ll quickly realize how simple formerly complex tasks can be. Whether you’re most concerned about IRS interactions, keeping track of payroll changes and worker onboarding, or whether you’re more security-focused, the cloud-based model has you covered in all of those areas.