10 Reasons Why Cloud-based Payroll Software Beat Manual Computing

BY Judah Hirsch Articles

10 Reasons Why Cloud-based Payroll Software Beat Manual Computing

Everyone is raving about the cloud and on-demand computing. The big question in many HR managers’ minds is: will cloud-based payroll software be worth it?

I know what you’re thinking. You’ve been using a manual payroll system since the beginning and you’ve never had problems with it. There might be some delays in payroll every so often but aside from that, everything works smoothly.

Or does it?

The hidden issue of manual payroll is that most of the work is actually done by the employees. They need to make sure to send in accurate timesheets each month. They need to be careful to send in expense reports or risk losing their allowances. Instead of focusing on work, they are doing a lot of easily avoidable manual tasks that tend to be time-consuming.

In addition to that, you’re losing focus when you handle payroll manually. Instead of  creating programs that will motivate and retain employees, you are instead slaving away doing accounting work that a computer can easily and accurately accomplish,

Why You Need Cloud-Based Payroll Software

On one survey, over 100 respondents were asked to rate the effectiveness of their current payroll policies and practices on a global scale. Despite countless payroll management tools available these days, only 15% of the respondents rated their current payroll policies and practices as “excellent” and meeting best practices.

From the same study, 85% of the respondents see room for improvement in their current payroll system. This implies that most companies settle on what works fine rather than what works best.

Companies should take payroll management seriously. An efficient payroll system contributes to the employees’ productivity and morale. It also spares the company from lawsuits and hefty fines. Research shows that a faulty payroll system may cost 40% of small businesses almost $1,000 a year.

For the HR team, a seamless payroll system also means reduced workload. No more struggling to go home late at night (or God forbid, in the small hours of the morning). No more stress when numbers don’t match. And no more arguments with employees regarding their compensation.

Cloud-based Payroll System vs. Manual Computing

Should you still settle for regular manual computing? Is it wise to switch to a cloud-based payroll software? It is important to weigh these in the choices available.

Let’s compare and contrast manual computing and cloud-based payroll management:

1. Lower Cost

Cloud-based payroll software these days take advantage of the lower costs of computing, which means they can offer extremely flexible pricing that can fit companies of any size. There’s even one that’s free!

2. Increased HR Productivity

Using a cloud-based payroll software keeps the HR team on-the-go. Even when stuck in a traffic congestion, you can still get things done.  Even while commuting, you’ll be able to run payroll through your smartphone or tablet. Your cloud-based software manages most of the tasks for you. Now, you can accomplish other deliverables faster.

3. Easier Processing

In-house payroll processes are oftentimes complicated.  New employees might find themselves spending many hours just learning how the in-house process works.  This can easily be solved if there’s a user-friendly payroll system that can handle the work for them.

4. Fewer Mistakes

Chances are, you’ll commit more mistakes in manual payroll computing no matter how careful you may be. More mistakes mean more loss for the company. Also, more hours spent on processing payroll also lead to less employee productivity. You can avoid that by using a cloud-based software, which is way cheaper in the long run.

5. Secured Data

There are many service providers offering efficient and affordable cloud-based payroll software. You only need to choose the right one that fits your company’s needs. Paper documents can be misplaced, stolen, or damaged. Meanwhile, an ideal cloud-based payroll system will let you limit certain individuals from accessing confidential data. No need to worry about the chances of losing important files, as well as your job, in case that happens.

6. Faster Salary

The one thing you shouldn’t mess around with is people’s livelihood. For companies, that means sending your employee’s salaries on the dot. But manual computing of payroll will eat up many hours and maybe even days of work. Whereas, a cloud-based software can process payroll in a few minutes. On time payroll means happier employees.

7. Better Accuracy

A cloud-based payroll software automatically and accurately calculates the exact amount each employee should be paid. It also helps you to keep track of each employee’s work record such as shift differentials, overtime, absences, taxes, and benefit deductions. It’s hard to manage all these things if you’re still using a traditional payroll method.

8. Accessible Anywhere

With a cloud-based software, it’s easy to access data from your PC, laptop, tablet or smartphone with just a few swipes and clicks. Forget the old days when you used to scavenge through piles of countless paper documents.

9. Less Bureaucracy

A cloud-based payroll software also means you can automate government forms. You can avoid both filling up those forms by hand and the long lines involved in processing those forms. That’s time better spent in the office training and motivating personnel.

10. Motivated Teams

When people know that they are paid on time, they will be freed from thinking about when payroll is coming in. Instead, they can spend more time doing a better job at work. For your part, you can also focus on motivating them instead of painstakingly computing their  salaries and expenses.

Switch to a More Efficient Payroll System

These ten reasons should be enough to convince you why a cloud-based payroll system is at least ten times better than manual payroll. Do yourself a favor and hire an automated payroll system instead of slogging through piles of receipts, forms, and print-outs. And if you need to try-before-you-buy, give Salarium a test run.


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