Payroll and HR: 5 Reasons to Move into the Cloud

There was a day when payroll and HR personnel barely used computers. Record keeping was handled through paper ledgers and filing cabinets. Payroll was calculated manually using paper time sheets and a calculator. It was all pretty simple back then. And yet, it was also complicated.

Today, payroll and HR have moved to the cloud. Growing numbers of businesses have adopted cloud-based solutions that eliminate paper, reduce human labor, and keep everyone in the loop at the same time. So how about your business? Have you moved payroll and HR to the cloud, or are you still hanging on to a legacy system?

For the record, a legacy system can be either paper- or computer-based. Even payroll and HR software hosted locally is still considered a legacy system if it relies on old software paradigms. To be truly on the cutting edge in 2019 means eschewing paper and legacy computer systems for new cloud-based solutions.

If you are still living in the legacy world, here are five reasons to consider moving payroll and HR to the cloud:

1. Information is More Secure

Whether you are talking payroll or HR, critical information can go missing when you rely on paper records or local network data storage. Missing information can be a big problem in the event of an audit or litigation. It can cause headaches when companies are investigated by local or state regulators for potential violations.

Information kept in the cloud is safer and more secure. Not only that, built-in redundancy guarantees that information will not go missing even if the main server goes down. The cloud even makes backing up data easier.

2. Access is Controlled

Next, moving your payroll and HR to the cloud makes it easier for you to control access to data. Only those who need access are granted it through the use of permissions. Furthermore, access to data is possible from virtually anywhere. This keeps payroll staff, HR staff, and external CPAs and bookkeepers in the loop at all times.

3. Automation is Possible

Moving payroll and HR into the cloud introduces the possibility of automation. According to Dallas-based BenefitMall, automation addresses some of the more mundane tasks of payroll and HR so that human workers do not have to waste their time. One example is automating hours-worked calculations at the end of each payroll period.

4. Errors Are Reduced

Hand-in-hand with automation is the fact that cloud solutions almost always reduce errors. Let’s say you have an integrated time and attendance solution that utilizes an electronic clock that sends data directly to payroll software. No human beings are involved in calculating hours worked or the amount paid for those hours.

Instead, the time clock sends data to the payroll software whenever an employee clocks in and out. That software tracks daily hours worked based on the received data. At the end of the payroll cycle, the software automatically tallies hours worked and the pay due. There are no human calculations involved.

5. Time is Saved

Knowing what we know about automation and error reduction, it makes sense that cloud-based payroll and HR solutions also save time. Cloud-based solutions require a lot less human effort across the board. This gives payroll and HR staff their time back. They can spend that time doing other things.

BenefitMall acknowledges that there is no perfect cloud-based solution for every company. But there are enough options out there to satisfy just about every need. If you are still handling payroll and HR with legacy solutions, isn’t it time to transition your business into the 21st century?

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