Many SMEs are weighing whether to switch to a cloud-based payroll software for small business or retain their current on-premise or outsourced one. But why would you abandon a system you’re already so used to for another that you know little about? Well, a cloud-based payroll is more flexible in terms of cost, control, and features than an outsourced or an on-premise one. Below are some of the benefits you’re bound to reap by switching to a cloud-based payroll, and how adopting it will improve how you process your payroll.
Using multiple platforms to manage different human resource processes can be time-consuming or even impractical. A cloud-based payroll software for small business can offer you just about any human resource management need. Apart from payroll, cloud-based HR software can provide you with HR and benefits administration capabilities, as well as time and attendance management solutions, all from one console. There isn’t any need to use multiple systems. This will allow you to update your employees’ data in one entry. This way, your data is accurate, and you save time.
With an on-premise or outsourced system, you’re stuck on a solution that remains unchanged from the day you buy it. It’s not able to grow with your business, and therefore lacks the necessary features that a growing business needs. A cloud-based payroll is ideal for any growing business since it’s highly scalable. It can promote business growth because it eliminates paper processes and all the costs associated with it, and which my impede growth. Moreover, you can customize and upgrade your platform depending on your business’s needs. You can expand the system as your business grows.
Real-Time Data and Accurate Reports
Manual payroll processing is prone to errors, especially stemming from manual data entry. This could lead to problems such as missed clock-outs, lost time cards, incorrect time hours and failure to track. In turn, the inaccuracies result to inaccurate salaries and tax deductions. The worst part is that it may lead to tax non-compliance which often carries hefty fines. A cloud-based payroll gives your business the opportunity to view your employees’ data at all times as they process such data in real time. This, and the fact that you won’t have to enter information manually, enables you to better control human capital, thus promoting better decision-making. All the information you need is provided as customized reports that can be generated on demand.
No More Paperwork
Payroll staff usually have to cope with bulky file cabinets, clutter in the office, and generally a disorganized workplace. A cloud-based payroll will give you that paperless work environment and significantly reduce your business’ carbon footprint. This will save you money, and at the same time conserve the environment. Besides, you get to minimize or even eliminate problems emanating from lost or pending tasks as a cloud-based system ensures that all forms are wholly filled and notifies you of any missing employee forms.
Deadlines and Non-Compliance
Payroll managers often have to meet certain important deadlines such as tax filing and paycheck deadlines. Failure to pay employees on time can negatively impact on their productivity and morale. Similarly, changes and complications in HR law can drag many businesses into trouble with the law. Regulators can impose heavy fines if you violate taxation rules. It’s therefore imperative that your payroll system is flexible. A cloud-based solution automatically provides updates on law changes and informs users of their compliance status. Likewise, these updates will enable you to make sound decisions.
Improper classification of staff is a common error in any payroll management system. This error can cause inaccurate payroll calculations, and can also lead to non-compliance fines. Payroll errors come with legal consequences that capsize a business or lead to employee disconnect. A cloud-based payroll system can automate processes to ensure proper classification and accurate payment of all employees.
It’s the responsibility of any business to keep employee information safe. Incidences such as system crashes and data theft can seriously impact your payroll process. On-premise payroll solutions are prone to data loss. Interestingly, this is an area where a cloud-based systems excel. Cloud technology has enabled SMEs to keep their data safe, yet readily accessible to authorized personnel.
A manual payroll system can limit managers and other relevant users from accessing payroll and other work-related data. A cloud-based payroll software for small business allows SMEs to grant their employees access to their own information. This greatly boosts employees’ engagement. This self-management feature also allows employees to view own PTO requests and time cards. They can then choose to take advantage of any open enrolment programs, among others. It also allows HR staff time to focus on other key HR duties as administrative responsibilities are taken off their shoulders.
Payroll management isn’t just about tax compliance and issuing employees with paychecks. It’s also about keeping proper records that can be used in audits. Proper records can protect your business against employee allegations, penalties, and audits. Since employees can also access these records, it can significantly lessen the administrative burden for payroll staff. By far, a cloud-based payroll is ideal for maintaining records and keeping them secure, safe and accessible.