There are so many articles being published about moving your payroll to the cloud. Technology is good and the cloud can help in many ways, such as allowing system access from anywhere an internet connection is available. So, are businesses still interested in using payroll software that is installed on their computer? The answer is ‘yes’. Though the cloud is growing in popularity, many employers do still prefer to keep their payroll installed on a local system. Red Wing Software offers its payroll program, CenterPoint Payroll, in the cloud or as a locally-installed program, and there’s a wide variety of customers using both deployment methods. If you’re ready to move to the cloud, good for you! If not – you’re not alone. Here are some of the main reasons we see people staying with their locally-installed payroll software.
Having a payroll system installed locally means more control. This is probably the number one reason companies decide to have their system in-house and installed locally. Your inside team is responsible for the upkeep of the system and the data, including security and setup. Changes can quickly be made if needed, rather than waiting for an outside company to make the changes for you.
Security is a major concern, especially when it comes to payroll information. Having a payroll system and payroll data stored in the cloud definitely requires trust in the hosting company. In addition to the security concern, it’s crucial to be confident the vendor can assure the program and its data will always be up and running, especially in time for pay day. Having payroll data hosted in the cloud can be a scary thing – and that is why many organizations stick to keeping their payroll system local.
Costs vary greatly among payroll providers, whether their services are offered for a cloud payroll system or an installed one. Depending on the company and its pricing model, the costs may be based on a variety of factors, like the number of users, which payroll functions are needed, the number of employees, the number of companies, and more. So just be sure to understand the company’s pricing before making a purchase, whether the system is cloud-based or locally-installed.
In summary, payroll in the cloud is great for those who are ready to make the move; find a program that works, and a trusted vendor with data security. For those who prefer to stay with the installed payroll program – stay with what you are comfortable with, and know that you are one of many businesses doing the same.