4 Reasons Cloud-Based Payroll is Good for Small Businesses
As a small, privately owned business, we at Dominion understand all too well that if you want to expand your reach and grow financially, it is vital to have smooth and efficient processes in place. These processes can range from onboarding to employee retention to internal trainings, and of course, payroll. These processes have to be streamlined if you want your product or service to run smooth. The faster a business grows, the more problems come along, including data security, remote access, and having sufficient backup data. These are all concerns that business owners have to constantly be thinking about.
In order to streamline these company processes and maintain efficiency at its peak, small businesses everywhere are making the switch to cloud-based software. This is particularly true with payroll processing, as it can be particularly tedious and mistakes can often delay payroll for your employees and even incur fees with the IRS. Whether you handle payroll yourself, have an in-house payroll manager, or you’ve hired a CPA or accountant to process, it might be time to consider the benefits that cloud-based payroll software can provide in the long run.
1. Increased Productivity
With Payroll Software as a Service, you’ll be able to have all of your information stored in the cloud. This data is shared between the necessary personnel so everybody has access to the appropriate documents from their personal computer, thus boosting efficiency significantly. You will no longer have to contact your colleagues to access, sort, or edit files since all information is in one electronic location.
Additionally, your payroll provider will have other features that you can opt in and out of such as Time and Attendance, HR Management, and Employee Self Service. Each of these features is designed to specifically save you time and increase efficiency.
Time and Attendance allows you to collect employee punches from a time clock or computer and convert them into hours worked that flow directly into payroll. This eliminates the need for dual entry and cuts down on the time it takes to process payroll.
HR Management can have a variety of features, including Benefits Administration that simplifies your open enrollment, Applicant Tracking that gives you one-click correspondence with your applicants, and Onboarding, which allows your new employees to fill out all their new hire documents electronically.
Employee Self Service lets your employees access and manage everything related to their job including viewing schedules and punches, shopping benefits, and requesting time off.
Each of these additional features should be located on one single platform so they’re working seamlessly together without any hiccups. With Dominion, we cater our pricing to fit the needs of your business, so you’ll only ever pay for the features you want.
2. Data Retention
For a long time, the tell-tale sign of a small business was the file room in the back with dozens of cabinets chock full of files. With cloud-based software, there is no longer a need to keep paper documents or external storage systems in place as a safeguard from natural disasters, computers crashing, or sticky fingers. Cloud storage saves all of your company’s information so you don’t have to lose sleep over the security of your documents. This means all of your employee’s punches, schedules, tax information, employee records, deduction amounts, cost center numbers and pay rates are saved, safe, and available at any time.
3. Avoid IRS Penalties
Speaking of peace of mind, most payroll software companies offer complete tax filing coverage for your payroll. This means that all local, state, and federal taxes are taken care of automatically when you run payroll. We also have integration with TurboTax to make it easier for your employees to download all tax information into the appropriate tax forms. What’s more, any penalties that might occur when you process are going to be absorbed by the payroll company. These fees can really do some damage to small businesses, so having a security net in place is absolutely vital.
4. Accessibility
Perhaps one of the biggest advantages of a cloud-based software for small businesses is accessibility. Whether you’re a one-person company or you have a number of employees, I’m going to venture a guess and say you likely wear a number of different hats when it comes to your role within the business. This probably means you often find yourself away from the office from time to time, sometimes when you don’t expect it. Having all your data accessible from anywhere, and even being able to process payroll wherever you find yourself, can alleviate a lot of stress. When you have a cloud-based payroll software, last minute trips across town to do some damage control doesn’t have to mean your employees don’t get paid on time. All you need is an internet connection and you’re good to go!
You can’t talk about small businesses without considering cost. A successful small business owner is likely to be very price conscious by nature. Because of this, the price tag that comes along with a cloud-based payroll service may come as something of a shock at first. However, keep in mind the benefits listed out for you above. With this knowledge and some research into the best payroll service, it’s possible you’ll find yourself saving time and money in the long run.
If you considering different payroll options and are interested in a cloud-based software, click below to request a software demo at no obligation.
