Why is switching to cloud based payroll software crucial in today’s time?

Are you one of those wondering why it is necessary to switch to cloud based payroll software? Here in this blog, we aim at answering these questions.

Switching to cloud based payroll software helps one gain enhanced flexibility in terms of control, features and cost than using an on premise software or getting your payroll outsourced to agencies.

Both enterprises whether small or big can leverage the following advantages linked to cloud based payroll software:

  • Scalability
  • Single Solution
  • Paperless
  • Real time data

Here in this blog, we will try to make you understand the details on advantages of cloud based payroll software along with reasons why implementing them would highly ameliorate the manner you process payrolls.

Here we will also explore the drawbacks associated with on premise softwares & payroll outsourcing.

For organizations that prefer to manage and handle their payrolls, there are 2 kinds of options, which they can opt for – on premise software and cloud based payroll software.

Both these podiums are designed to automate and streamline payroll processes as well as ensure efficiency, accuracy and on time payments.

However, there is a wide difference between the 2 kinds of payroll softwares.

While on premise payroll software comes with their own benefits, they have huge disadvantages associated with them that if left unmanaged, can render unreliable and inefficient results.

Most of the on premise software come with massive upfront charges, which makes them unpopular among small scale businesses who lack the relevant capital to buy such products.

Read Also | 3 Advantages of cloud based HR solution

Advantages of opting for cloud based payroll software:

Management of payroll has since decades been a tough and complex task for most organizations.

Employees responsible for managing payroll have the potential of commiting massive manual errors that can result in organizational loss.

Here we will list the advantages that cloud based payroll software can endow to businesses and overcome the complexities associated with on premise payroll software.


With on premise software, your organization is primarily stuck on a solution that stays the same since the time you purchase it.

They do not evolve or upgrade with the growth in your business and thus lack the required features that a developing company requires.

Cloud based payroll software is one of the prudent choices for growing organizations as they provide scalability.

They ensure to promote organizational growth due to the fact that cloud storage removes paper processes as well as the associated expenses they generally impede business growth.

Additionally, businesses also get the option to customize and upgrade their podium based on their requirements. Cloud based payroll software can be expanded with growth in organization.

Read Also | Crucial Reasons to Opt for Cloud Based HR Software

Single solution:

Use of multiple podiums to maintain distinct HR processes is not only impractical but a procedure that is highly time consuming.

Cloud based payroll systems have an edge over them owing to their capability of offering all the HR linked payroll processes in a single platform.

Besides this, the solution also keeps a track of the attendance and provides HR linked administrative capabilities in a single console.

With cloud based payroll software, companies can forgo the requirement of using multiple platforms that allow users to update the employee data in single entry, leading to data accuracy and time savings.

Read Also | 7 Advantages of automated payroll system

Promotes paperless solution:

Those HR staff working with on premise software usually have to deal with massive paper clutters, bulky and heavy files and disorganized workplaces.

With the help of cloud based payroll software, businesses can attain a paperless environment, which crucially lowers your organizations’ carbon footprint.

It not just helps to save a sizable amount but contributes to a healthy environment. Additionally, issues like lost tasks or pending activities can be lowered by a huge margin as such software ensures that all the office forms are thoroughly filled as well as notified to the personnel in case of any missing employee form.

Provides accurate report based on real time data

Mistakes and errors generally stems from processes that are conducted manually when processing the payroll.

This usually leads to issues like incorrect time hours, missed clock outs, lost time cards and crucial failure to track.

Such inaccuracies often result in inaccurate salary payments, tax compliance and tax deductions. What is not agreeable is that such inaccuracies may result in businesses paying hefty fines due to non compliance of rules and regulations.

With the assistance of cloud based payroll software, organizations can take  the opportunity to review their employee data or info at all times as such solutions provide data in real time.

Moreover, the software also offers HRs the convenience of not having to enter any data manually, keeps control of the capital management of businesses and promotes the idea of better decision making.

At Dynamics Business Solutions (DBS), we have come up with Dynapay payroll developed inside Microsoft Dynamics 365 BC – cloud based payroll software that is a reliable, flexible, simple to use platform that can even help HRs to solve comprehensive payroll calculations with ease.

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  dynapay@dynamics.ae OR visit www.dynamics.ae

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