For any size organization, a cloud-based payroll system is an integral part of accounting efficiency. It will also be a surefire way to safeguard your payroll process from common mistakes that have plagued management and employees alike. Specifically for small business payroll, a switch from an older accounting system can skyrocket efficiency and boost employee morale.
Cloud-based payroll systems also help with data security, tax filings, and overall peace of mind in regard to one of the most mistake-laden portions of running a company. If you are interested in learning more about the cloud and its payroll services, read our quick guide to success.
Before getting into the benefits of cloud-based payroll systems, we must first answer the question: what is the cloud? Cloud computing is a mode for uniform, convenient, and on-demand network access to shared data and computer resources.
Thus, a cloud-based payroll system is one that allows you to store your systems and data on a remote server that is accessible online with proper permissions. This means that your accounting team, CFO, or any executives that need access to records can get them quickly without having to be on-site.
Cloud-based payroll can eliminate many problems a business might face. These include reliable backup of data (no more filing cabinets full of folders!), the ability to transmit requests to financial institutions, and congruent numbers when filing taxes. The last one is especially important, as it makes reconciliation much easier without having to check outside sets of payroll figures.
Past the data portion, the benefits for a business are immense. At this point in time, the business world is predominantly on the cloud, and thus there are amazing programs and support for refining your payroll process. These programs will allow you to run payroll faster, pay your employees on time, file forms, and pay associated taxes quicker than any manual system possibly could. In turn, you will save time, money, and reduce stress for your team.
Additionally, cloud-based payroll systems make it easier for your clients, as well. You will be able to price jobs and track time better, which means your overall quality of service will improve. This can be huge for proper internal pricing and year-over-year growth tracking. Additionally, if any of your clients are in need of records for a contract, you can transmit this data at lightning speed with security you can count on.
Finally, payroll errors are costly to both employees and employers. It is estimated that 40 percent of businesses still do manual payroll, leading to massive fines for improper taxes or wage theft. On the other side, time-theft is more accessible for employees of a small business if their punches are tracked manually. Moving to the cloud can end up saving your company dramatically by reducing these costly payroll errors.
In summary, if you don’t have a cloud-based payroll processing system, it’s time to start looking.
With such an important part of your business at stake, choosing a proper vendor is key. In 2020, there are no shortages of companies who can provide you a baseline service, but a full software suite and support are advised.
Similarly, if your small business does not have a CFO or full-time accounting team, working with a consultant or payroll processing specialist will go a long way in helping your cloud-based setup. At Paytech, we have been working with small businesses for decades to create cloud-based solutions.
Our team can help convert a manual payroll process to a proper cloud-based system. We have extensive expertise in QuickBooks Online and other similar products, and would love to showcase options for growth.
While many programs are generally intuitive, they require a certain level of expertise in accounting, software, and payroll services to set up. Luckily, many full-service payroll systems come with HR, 24/7 tech support, and a suite of resources. We believe that our well-rounded group of payroll, accounting, and HR specialists can help answer any questions you might have about where to get started.
Ultimately, like any other component of outsourcing, the value lies in the ability to have a trusted provider saving you time and money long-term. Paytech can help create protocols for your software and entries or even provide full-service processing. We pride ourselves on attention to detail and the ability to deliver nuanced consulting in a typically broad space.
If you believe your business is ready to take the next step in growth and security in your payroll systems, please reach out today. We’d love to start a conversation about moving your payroll to the cloud.