Sam Makad is a business consultant. He helps small & medium enterprises to grow their businesses and overall ROI. You can follow Sam on Twitter, Facebook, and Linkedin.
Earlier processing payroll was a time-intensive process, now companies are making the switch to cloud technology for their HR & Payroll needs. Below, we've listed 5 of the most prominent reasons that are sure to make you lend a thought in this direction.
It is no secret that the business world is constantly evolving in terms of technology. Cloud technology is among the most promising of these technologies and is particularly useful for managing notoriously time-consuming tasks like payroll.
That said, adapting to new technology in the workplace can be a challenge, especially if you and your employees have grown accustomed to managing tasks the more complicated way.
Even a more streamlined system with the CRM (Customer relationship management) and ERP (Enterprise resource planning) in one application can slow things down in the beginning. There is always going to be a learning curve when implementing a new system.
Fortunately, cloud technology can be implemented into most payroll routines fairly effortlessly. In fact, it may well make all your employees more efficient and productive, as they will have much more time to focus on other matters. When you eliminate waste in your business process, it frees people up to actually do their job rather than spend their time performing redundant tasks.
Here is how it works:
1. What is Cloud Payroll Software?
When it comes down to it, cloud payroll software is a pretty simple concept. All that is required for a system to be a cloud system is the ability to store programs and data online by any computer with an internet connection.
The cloud is essentially a server with high computing power where the software is not only hosted, but from where it runs. Instead of being stored locally on your computer. This is because the software is so advanced, it needs a lot of computing power that your PC or laptop would never be able to achieve.
When you have your software operating in the cloud, you can get far more out of it than a simple software that you download from the internet. There will be more computing power to be able to synchronize many things at once.
Another benefit to using the cloud over a locally stored application is that it can be accessed from multiple devices anywhere in the world where they have an internet connection. For your team to work seamlessly, this takes away a major hurdle.
With cloud payroll software, such information as employee pay and tax forms is available in one place. As a result, this streamlined storage system can save any business time and money, whether it has 10 or 10,000 employees.
2. How Can Cloud Payroll Software Benefit Me?
For small business owners, mindless payroll paperwork can detract from spending time on what you really want to be doing. Too often, you must worry about making mistakes that will cost your company money you do not have, or that one of your employees will come up to you with a paycheck complaint.
With cloud-based payroll software, however, you can put these worries behind you. This user-friendly software is designed to bridge communication gaps between departments, enhance cross-functional collaboration, manage employees’ leave and attendance and increase compliance.
With cloud payroll software, you also do not have to worry about the likely aspect of a fully digital workplace. By making the transition now, you and your team can get ahead of the curve and become profitable for when–or if–the time for change comes.
3. Build Your Workforce
When you have two teams with very different scopes that need to work together, disjointed doesn’t even begin to address the challenge. With many businesses, there is a software for CRM for the forecasting of sales for your sales department and then another for the billing and other financial details for your accounting department.
There is a lot of overlap between these two things, so a cloud based payroll software can handle both of these things and allow the two different departments the ability to coordinate to achieve the goal of using the data to drive more sales.
With both of these departments using the same system that can bring a lot of disparate data together, it helps the company come up with a true picture of how the company’s future is going.
4. Make Your Team Remote
There is a move towards downsizing a company’s physical footprint with regards to the size of the space needed to operate. With the Covid-19 pandemic forcing many workers to work from home, the most effective way to keep things working is to use a cloud based system.
Even without the pandemic, there was a trend that was gaining momentum to use remote workers since there is little need for a big office with people doing redundant tasks. It costs less to operate remote teams, reduces the carbon footprint of the company and allows people to work more effectively since they are not wasting time by commuting.
Your teams will still be able to collaborate when they are all using the same system that helps them crunch numbers and provide data across a lot of different areas of the business. It isn’t just to make payroll accounting easier.
5. Choosing your Cloud Payroll Software
If you have chosen that cloud payroll software is the best option for you and your company, you may be wondering what next steps you need to take.
First, you need to identify your business’s specific needs. Then, you can look at the myriad of options available to you. For smaller businesses, you most likely will not need all of the features of an expensive cloud payroll software.
Conversely, a larger business may need software that is capable of completing a wider array of tasks, such as managing retirement plans, issuing off-cycle checks and calculating tax deductions. There are options out there for you as well, including some more comprehensive HR management software.
The price of cloud payroll software can vary from company to company. Before you go ahead and make a purchase, be sure to do your research, accurately assess your company’s expected growth and determine which features will best suit your needs in order to become the most successful business possible.
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