Most businesses today are utilizing at least one type of cloud-based service. Cloud software is becoming the norm for most businesses and the usage rate is growing exponentially. According to Statista, the cloud market revenue was valued at $130 billion in Q4 of 2020, and the public cloud services market as a whole is forecasted to grow 18.4% in 2021. So why the big jump? Using a cloud-based payroll software, for example, provides a number of substantial benefits. It increases efficiency, streamlines payroll processes, helps improve cash flow, and makes it easy for employees to access important information.
Let’s take a closer look at some of the key benefits that organizations can achieve with a cloud-based payroll solution.
Increased Accessibility and Flexibility
Cloud payroll software provides greater accessibility to payroll and HR-related information. As long as employees have an internet connection, they can access the information they need anywhere, any time. Your team will be able to work and access their payroll information whenever it is convenient for them. Especially with the current climate surrounding the COVID-19 pandemic, most workers are working remotely, so this can be of the utmost importance.
Quick and Simple Implementation
Implementing cloud payroll software is quick, simple, and cost-effective. You can access it through any standard web browser; no need to install the software on your systems, deal with contractors, nor put server infrastructure in place! Open APIs allow your cloud software to easily integrate with other applications you use too, saving you the hassle from having to share your data with other systems.
Increased Data Security
Cloud payroll software providers will have their own strict and comprehensive policies and procedures in place to protect your data, since they host lots of confidential employee and business information. If they don’t have adequate protection policies, they risk data breaches and losing their customers as a result. Software providers need to ensure they have adequate protection for the survival of their business. However, it’s always best to do your own due diligence to make sure they meet or exceed the data security industry standards.
Low Upfront and Predictable Costs
One of the great things about using cloud software is having predictable costs. Businesses will know exactly how much the software will cost them in advance. You simply pay for what you need and you can scale back on features you don’t use. No need to purchase additional hardware, such as server infrastructure, and little to no maintenance is needed to maintain your system. All maintenance and updates to your software are typically done remotely automatically. Overall, cloud software is a cheaper upfront investment, which is ideal for those who don’t have the budget to pay a large sum at once. With cloud software, you don’t need to worry about unexpected costs either!
Moving your payroll software to the cloud empowers your employees to be self-sufficient. Employees can instantly update their own personal information, track their time, and request time off online, without having to go through their managers or your HR department. This will significantly reduce the amount of paperwork needed and used. When using online software, you also reduce your carbon footprint from using less energy with a reduced amount of hardware and equipment.
Disaster recovery is important for all businesses, but it can be costly or may require special expertise, which can be challenging for small businesses. A cloud payroll solution can provide disaster recovery through cloud-based backup and recovery solutions. This way, small businesses can receive the protection they need while saving time and money from using third-party solutions instead of in-house solutions.
Cloud payroll software providers take care of your software, security, and tax regulation updates for you. There is minimal effort from your part to maintain your system. You’ll be able to stay on top of your financial compliance requirements easily while using the most efficient version of your system. You don’t need to manually update it each time a new version is released.
Moving to a cloud-based payroll solution can provide several substantial benefits such as quick implementation, low upfront investment, and greater accessibility to essential payroll and HR information. With more and more offerings of cloud solutions, businesses need to keep up with the changes in technology to operate more efficiently and to remain competitive in the industry.
Learn more about Paymate's cloud-based solution
Harmony is Paymate’s newest hosted solution for businesses of all sizes in North America. With automatic tax table upgrades and your data stored on the cloud, you can do payroll anywhere, any time.