Payroll may seem like a necessary evil in your small business, but switching to a cloud-based payroll system can be one of the smartest things you’ll ever do. There are tons of great cloud-based payroll systems on the market right now, but before you get started with your search, it’s important to understand exactly what you need and what your options are when it comes to choosing the best payroll system for your business. This guide will walk you through what makes a great payroll system and how to pick the right one for your company.
1. Upgrading your payroll
When was the last time you took a look at your payroll system? If it’s been more than a few years, chances are you could stand for an upgrade. The IRS is making it easier than ever before to switch from an in-house solution to a cloud-based one by offering new incentives that will save you money and decrease hassle. According to their website, you can choose among different electronic return options that can make filing your tax return simple and easy. These choices could include transmitting your business tax return data through an online program operated by an approved service provider or using brand name software.
2. Increased Accuracy
When you’re dealing with paper and manual payroll records, it’s easy for details to get lost or mixed up along the way. Cloud-based payroll software ensures that everyone – employees, payroll administrators, and managers – all have access to accurate information at all times. That means payments go out accurately and on time every time. It also helps reduce errors such as duplicate payments and payments going out too early or too late. Having your entire payroll managed digitally ensures you don’t pay workers twice or not at all for work they’ve already done. That saves your business money and increases morale among employees because they won’t be afraid of getting paid incorrectly or being accused of mistakes by management.
3. Data Security
Your payroll information contains extremely sensitive personal data about your employees, including their addresses, social security numbers, and bank account information. It’s one of your company’s most valuable assets—and it could also be vulnerable if you run into a fake receipt maker that tries to scam you. A cloud-based payroll system comes with built-in data encryption that can help protect your information from hackers who are always trying to get into corporate databases. By switching to an online payroll solution, you can keep employees’ financial data out of their physical possession so they don’t have access or have an opportunity to steal or accidentally disclose it.
4. Flexibility
One of the most obvious benefits of using cloud software for payroll is flexibility. Unlike traditional software, which comes preloaded with features that may or may not apply to your specific business, cloud platforms are highly customizable and can be accessed via mobile devices and browser-based tools. This adaptability is critical for businesses looking to stay competitive and responsive to their employees’ needs. For instance, providers like gotomyerp specialize in offering cloud-based solutions that not only cater to your payroll needs but also ensure that you’re leveraging the best in technology for your accounting and financial management processes. The fact that you can access all payroll data through standard web browsers means that employees can work from anywhere they choose — even from home — as long as they have access to an internet connection. Flexibility also means greater convenience: you’re no longer bound by set business hours or physical locations. What’s more, it offers advanced security features such as multi-factor authentication and encryption—features that will provide peace of mind for many small business owners.
5. Lower Costs
The ability to scale your payroll system up or down based on your specific needs will be a huge benefit for any company that employs dozens, hundreds, or even thousands of people. It’s hard enough managing human resources without having to maintain and upgrade an entire payroll system. Cloud-based systems are flexible and reliable, which makes them perfect for small businesses with variable employee counts. If you plan on expanding in the future, it’s not worth investing in software that can only manage a limited number of employees. Don’t be bogged down by accounting requirements that were meant for corporations with thousands of employees; start your business with something simple and scalable. Your business will thank you later when it’s time to upgrade!
