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There was a time when businesses handled their payroll processes manually. They’d prepare payslips and track payments by relying on spreadsheets for efficiency.
But, if we were to debate, spreadsheets vs software, which one’s better for payroll processing, they’d both have different advantages. While spreadsheets are great for maintaining records, software offers a lot more scope for integration and versatility. That’s why, businesses have been increasingly tempted to skip the spreadsheets in favour of software offering comprehensive solutions for not only tracking but also streamlining manual tasks.
In the modern business landscape, characterized by a diverse and dispersed workforce, payroll management has become increasingly complex. To address this challenge, cloud-based HR payroll software has emerged as a widely embraced solution. It has played a key role in transforming HR and payroll process by automating complex and time-consuming tasks, enabling HR teams to dedicate time to more value-adding initiatives.
In this blog, we will explore the advantages of a cloud-based HR payroll software and see how it enhances HR and payroll process for maximum efficiency.
What is a Cloud HR Payroll Software?
Cloud HR payroll software is an advanced payroll management solution that operates entirely within a remote system. With just a computer connected to the internet, users can access, manage and oversee all aspects of the payroll process in HR.
A cloud HR payroll system also enables employees to access to the same payroll process information, regardless of their location. Moreover, it ensures the security of payroll systems and data maintenance through strong security protocols, guarding against data breaches and unauthorized access.
7 Ways a Cloud HR Payroll Software can Simplify your Payroll
Streamlining the workflow for your HR departments by automating repetitive tasks involved in payroll management can significantly increase productivity. It can also benefit your business by:
1. Making Payroll Process in HR more Cost Efficient
By adopting cloud HR payroll software, businesses liberate themselves from the complexities and expenses associated with maintaining and upgrading traditional payroll process systems. This is especially important considering cost reduction is being given increasing importance by most business leaders.
As per a recent PwC survey 59% [of CFOs] are prioritizing reducing cost as a percentage of total revenue for the next 12 months.
Cloud HR payroll software also reduces the burden on an organization’s IT department. Unlike legacy on-premise systems, which demand major in-house efforts for updates, cloud HR and payroll services are regularly updated by their vendors, often multiple times a year, with minimal implementation requirements from the IT team.
Moreover, companies can also yield significant cost savings as cloud HR payroll software don’t require investments in servers and other hardware, as well as the personnel required for their maintenance.
2. Ensuring Step by Step Payroll Process is Faster & Efficient
For most HR teams and CFOs, one of the biggest motivations for shifting to a cloud HR payroll is often the shortcomings of their present process of payroll systems. They often face issues like struggling to adapt to the demands of today’s fast-paced, mobile, interconnected and data-driven environment.
Most of them are also tired of dealing with system upgrades, which require significant time – time they’d rather spend focusing on strategic tasks. System upgrades can also halt operations and therefore waste resources while increasing costs in the process of doing so.
54% [of CFOs] say they spend most of their time doing work that doesn’t add strategic value to the organization. – Pigment
Cloud HR software and payroll empowers businesses to access payroll process information from anywhere, enabling swift responses to employee inquiries and expediting workflow efficiently.
3. Centralizing Employee Data for Payroll Process in HR
The payroll process in HR entails more than merely calculating employee paychecks. Failure to organize employee records centrally from their first day at work can jeopardize paycheck accuracy. For instance, an incorrectly entered Date of Joining could result in an employee losing a day’s wage which could cause a compliance issue for employers.
Cloud HR payroll software helps by enabling the tracking and management of various employee lifecycle events, including onboarding, salary adjustments, benefits, leave management and investment declarations, all through a centralized data source. What’s more, it facilitates centralized management of all employee communications, reducing the hassle for HR teams.
4. Simplifying Compliance in Payroll Process
In contrast to traditional payroll systems, cloud-based HR payroll software offers the flexibility to adapt faster to compliance changes. In countries like India, where regulatory laws undergo frequent revisions, such as new budget announcements and updated deduction percentages, these changes can be efficiently managed.
With a single update to the central server, businesses can ensure compliance with various statutory regulations governing PF, ESI, PT, LWF, IT and other government-mandated updates.
5. Reducing Workload for Payroll Process Staff
The task of maintaining employee records, collecting necessary proofs and verifying submissions takes up a huge portion of every HR professional’s time on a monthly basis.
Did you know, as much as 73% of HR’s time is consumed by monotonous administrative tasks?
With cloud-based HR payroll software equipped with employee self-service portals, HR teams can delegate routine tasks back to the employees themselves.
Employees can independently submit their proofs through these portals, further streamlining the process. Employers can then efficiently validate and approve or reject these submissions online. In cases where additional documentation is required, real-time messaging features allow employers to request necessary materials directly from employees.
6. Integrating HR and Payroll Processes
A step by step payroll process implementation requires seamless collaboration among HR, payroll and finance teams within any organization. Key employee details such as personal information, tax-related data, leave and attendance records, bonuses and other pertinent information must seamlessly integrate into the payroll system every month for smooth operations.
A tightly integrated HR and payroll process enables easy collaboration. Single sign-on functionality streamlines access for staff, doing away with the need to juggle multiple passwords. Robust access controls enhance cross-departmental collaboration without compromising security or user-friendliness. With real-time data flow between departments, information exchange becomes effortless.
7. Managing Real-time Data
Many senior Finance and HR executives often complain that they find it difficult to access necessary payroll process data promptly, given that there is a lot of duplication and complexity in their information systems. Such payroll challenges largely stem from the use of outdated payroll systems.
Cloud HR payroll software addresses these issues by providing real-time access to information, insights and consolidated payroll metrics. This eliminates the need for separate business intelligence systems. Whether it is gaining insights into the consolidated HR payroll system or assessing overall tax liabilities, users can access relevant information with just a few clicks.
Parting Thoughts
Cloud HR payroll software offer a number of advantages compared to traditional methods. Given that a hybrid work culture is now the norm across industries, many companies could find value in exploring remote payroll management.
Platforms like Akrivia HCM offer businesses comprehensive end-to-end management of their payroll process. They facilitate easy management of a dispersed workforce, enabling employees to seamlessly access payroll operations regardless of their location.
What payroll challenges would you consider implementing a cloud payroll software for? Let us know in the comments!
