Why should you shift to cloud based payroll software?

Why should you shift to cloud based payroll software? Basically, you attain higher flexibility concerning features, control & cost as compared to on premise platforms or having a payroll system outsourced to agencies.

Both an enterprise and small business are poised to get the listed advantages linked with cloud based payroll solutions.

  • Scalability
  • Single solution
  • Paperless
  • Real time data
  • Meets deadlines
  • Employee accessibility
  • Meet compliance needs

Here, you will understand in detail the advantages of opting for cloud HR software & the reason why you should take them up to ameliorate your payroll process.

Also, you will learn in depth about the disadvantages of on premise platform & payroll outsourcing.

For companies who highly prefer to manage their own payroll system, there are two kinds of systems to opt for firstly is on premise systems & secondly is cloud based payroll software.

Both the systems are well designed for both streamline & automate the payroll processes and at the same time ensures efficiency, accuracy & on time payments.

However, there are huge distinctions between these 2 kinds of payroll programs. While both the mediums have their specific set of strengths, they even have their drawbacks that if left uncleared can render inefficient & unreliable data.

It is specifically correct in case of the on premise payroll system, which are deemed less effective as compared to the cloud hr software counterparts.

Next element is the payroll system cost. Most of the on premise systems come with massive upfront charges, which makes them completely unpopular among the SMBs as they lack the required cash flow for buying such products.

Management of payroll is even a daunting task for most companies. Personnel responsible for the payroll run hit snags that can lead to various problems. Here, we will define most common payroll issues & what the cloud based payroll software can do for addressing them. Following are few of the advantages of cloud based payroll software:

Read Also | How should you select the best cloud based payroll software for your business?


With the on premise platform, your organization generally gets stuck to the on solution features that stay the same since the time they are bought.

They do not grow with growth in your organization and thus lack in crucial features, which a growing business requires.

Cloud based systems are best for growing organizations as they are extremely scalable.

They even promote organizational growth as inclusion of cloud based storage helps them remove paper processes & linked costs that generally impede the growth of the business.

Additionally, users even get the choice to upgrade & customize their podiums based on their requirements. Such systems can get expanded with growth in organization.

Single solution

Use of various platforms to manage varying human resource processes is not only impractical but also time consuming.

Ability to cater HR management requirements endows cloud based payroll systems an edge over on premise systems.

Beside payroll, such solutions cater attendance management, helps save time and conduct HR administrative tasks with ease in a single console.

There is zero requirement to utilize various systems, permitting users to easily update employee data in just one entry, which leads to data accuracy and time savings.

Read Also | Using a cloud based payroll software in the UAE? Here are some benefits

Real time data & accurate reports

Mistakes mostly stem from the manual processes linked with the payroll processing, one of the most common is manual data entries. It can lead to issues like wrong time hours, missed clock outs, lost time cards & failure to track the over time.

Such inaccuracies in turn results in increase in inaccurate salary payments, tax compliance and tax deductions. What is worse is the prospect of non compliance as it comes with hefty fines.

With the cloud deployed software, companies are endowed with the chance to view the employee info/data at all times as such systems can process them easily in real time.

It is complemented by fact that they cater users with the convenience of not requiring to enter the data/info manually resulting in complete control over the human capital management and promoting right decision making.

Also, all the required data/info are provided in the form of customized reports, which the businesses can generate at any time.

No more paperwork

Most of the payroll based staff require contending with clutter in businesses, bulky and heavy file cabinets & usually disorganized workplaces.

With the cloud HR software, you can attain a zero paper work environment, which considerably lowers your organization’s carbon footprints.

It not just saves you money but even helps contribute to the environment too.

Additionally, issues from lost or pending tasks can be lowered if not completely eliminated as such systems ensure that all the forms are thoroughly filled & even notifies personnel about missing employee forms.

Follows deadlines

Payroll managers require meeting specific deadlines, most crucial of which are the tax filing and paycheck deadlines. Missing out on delivering the employees their salaries within time can adversely affect employee productivity and morale.

On other hand, changes and complications in the HR laws can drag the organizations into dangerous trouble with law.

Regulators are known to charge high fines or those who highly violate taxation rules, which makes it imperative for the businesses to get a flexible payroll platform.

Cloud based payroll systems automatically cater updates on the changes in law & informs users about the status of compliance. Such updates likewise allows companies to make a sound decision.

Staff classification

Common mistakes in the payroll management, not properly designed employee classification can lead to inaccurate payroll calculation & can also result in fines in case of non compliance.

Queries in regard to payroll come with legal consequences, which in few cases can prompt the staff disconnect or at worse can capsize an organization.

Cloud based payroll software has the potential to automate the processes and even makes sure all staff are classified properly and paid accurately.

Security of data

Keeping the information of the staff/employees safe is a big responsibility. Occurrences like data theft & system crashes adversely affects the payroll processes.

It is genuinely no secret that the on premise systems are highly susceptible to info/data loss and this is a region where cloud HR software can excel in.

Development of the cloud technology in the payroll platform has made it very much possible to keep the info/data safe and accessible to the parties concerned.

Read Also | How to choose payroll software for business needs?

Employee accessibility

Legacy and manual payroll platforms are completely known to restrict the data access to relevant users and managers. However, with the launch of cloud based payroll systems all of it has changed as it permits organizations to cater their staff/employees with the option to access their own data/info.

This has seen a great boost in employee engagement. Self management permits employees to view their specific time cards, and even take benefit of open enrollment among the rest.

Also, it endows the HR personnel an enhanced breathing room as the cloud based payroll system takes away most of the administrative tasks off their shoulders.

Record keeping

Payroll management is not restricted to furnishing the employees with their paychecks & complying with the required tax regulations.

Also, it is all about keeping the records for the purpose of use in the audits. Keeping a proper record can help protect a company against penalties, audits & staff allegations.

Such records can even be easily accessed by the employees, which considerably helps lower the administrative pressure for payroll employees.

Till now, cloud based payroll system is the best and most prudent platform when it is about maintaining records, keeping secure, safe and accessible data.

Dynamo works inside Microsoft Dynamics 365 FO – cloud based payroll software, we aim to offer the above similar features to all the businesses to make their payroll system function at ease with simplicity. 

Dynamics Business Solutions (DBS) is a certified Microsoft Dynamics partner in UAE, we take pride in our ability to develop and deploy the right business solution that matches global client’s requirements.

To know more, speak to our expert at Dubai: +971 4 447 5525 Abu Dhabi: +971 2 222 2100 or inbox us your query at  dynamo@dynamics.ae OR visit www.dynamics.ae

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