Cloud Payroll
5 Ways Online Payroll Makes Business Easier

AUG 18, 2020

Payroll management in the “cloud” just means utilizing the internet for data storage and management, rather than maintaining it on a computer hard drive. Using the cloud and cloud technologies alleviates the need for the business owner or manager to worry about backing up data, having enough storage space, having information securely accessible via the web and keeping business payroll software updated. 


That’s part of why, as you may have noticed in the business world around you, that just about everything is moving to the cloud.

Consider these five ways online cloud payroll makes business easier.


1. Accessibility


It is a new age. Business owners and their team members aren’t always tied to a desk all day. They use laptops and smartphones to work from anywhere, including outside regular business hours. And they often manage employees who may not work at the same location. 


Cloud-based payroll empowers management to process and approve payroll from anywhere. It also allows employees to log in through a portal and access information they may need about pay history, paid time off, withholdings, benefits, and more. Operators can keep tabs on it all in real-time, even while traveling or on vacation.


2.  Speed and Accuracy


Business owners and managers can get real-time reporting and data at their fingertips with cloud-based payroll. In the cloud, the payroll management firm handling the work can update figures automatically as rules and tax rates change. 


Because of the up-to-date nature of the data, owners never have to wait for their bookkeeper to show up at the office — and keep up with tax changes — to update calculations. This is a benefit not just for management but also for employees who may need current information about their pay, withholdings, and more at any time.

3.  Security


Encryption and dual authentication that is now commonly used in cloud payroll systems keeps information safe, and, as mentioned above, all that critical data isn’t lost if an office computer bites the dust.

4.  Scalability


This is a big advantage of using cloud payroll. Small businesses can grow fast. If an owner starts out using an in-house bookkeeper or local accountant, and adds more employees, the payroll demands quickly can outpace management’s ability to handle it all.


Outsourcing payroll to a company using the cloud from the start — even with one or two employees — enables scaling upward seamlessly. 

5.  Reducing Costs


Paying dedicated staff to calculate and coordinate payroll is a big piece of overhead. While some may assume it would cost more to outsource, it typically saves on cost.


A payroll management company is handling a number of clients in the cloud, and though they provide personalized service to each of them, they don’t have to charge exorbitant fees to each. The return on investment of outsourced payroll is greater than when using business payroll software.


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