Cloud payroll makes business sense for SMEs
Payroll is an essential function of human resource management. However, you wouldn’t say so based on the technology investment that businesses are willing to make. They’ve become complacent with ageing desktop systems that can’t keep up with the data-driven and hyperconnected direction the world is moving in.
On the other hand, cloud payroll offers nothing but advantages, especially for small businesses. Cloud payroll has it all – from optimising time and saving costs to improving security. If you’ve been wondering how your SME can benefit from shifting your payroll to the cloud, you’ve come to the right blog.
Built-in compliance
With regulations like GDPR and Popi now in place, businesses have no choice but to make compliance a priority. Traditional payroll systems are at a disadvantage when it comes to compliance while cloud payroll systems have compliance engineered into them.
A cloud-based system allows you to adjust your platform for compliance in different industries and regions in a few easy clicks or taps. This gives you peace of mind knowing that your SME is adhering to the latest and strictest legislation without you having to take a crash course in compliance and data law.
Any updates to tax guidelines made by SARS are automatically updated in the cloud payroll system’s core legislation, which doesn’t happen with desktop systems. Cloud payroll applies the latest tax tables without you having to download an upgrade every tax season. This goes a long way towards ensuring PAYE, UIF, SDL and OID figures are calculated correctly and are keeping up with changing e@syFile tax codes.
Centralised, secure and scalable
SMEs that are still using desktop systems struggled the most at the beginning of lockdown. They had grown accustomed to Ethernet-based networking, manual data entry and a mix of paper and digital documents. Businesses that invested early in cloud-based payroll made a smooth transition from working from the office to operating from home.
Cloud payroll is an always-on solution that’s accessible from anywhere at any time. It’s secure, which means that even though the data and analytics are centralised, they’re protected by the most advanced permission-based security. It’s also scalable, which allows for data accumulation without requiring additional server space at an added cost.
Cost-effective and time efficient
What dissuades small business owners from getting cloud payroll is the idea of investing in a (albeit advanced) version of a system they already have. Many are satisfied with their traditional systems because they assume that cloud payroll will cost more. But migrating could save them time and money. It costs less to set up a cloud-based payroll platform than to run costly upgrades and maintenance on ageing desktop systems.
Cloud systems are built to integrate with all the latest accounting, calendaring and ERP systems and are optimised to keep up with them in future. You also save time by never having to do manual data entry or paper document processing. Salary payments are accurate and on time, overtime and bonuses are calculated automatically – and it’s all done in a fraction of the time it would take on traditional systems. There’s simply no denying that every small business can improve by moving its payroll to the cloud.
Rae & Associates partners with PaySpace to give you an exceptional cloud payroll experience. We can help no matter what type of small business you are. Get in touch with us today and get started.
