Cloud computing is the next big thing in the world of business and technology. Much like how Microsoft Office became a boon for companies of all sizes everywhere, cloud computing may serve as another major component to the success of a firm.
Every tech blog, every tech magazine and every newspaper with a business or technology section will tell you that everyone and everything is going to the cloud. Data, corporate operations and finances (cash flow, online personal loans, debt, sales, etc.) are being transferred to the cloud everyday to streamline operations. And yes this does include payrolls, too.
Today’s generation of small businesses and startups are pondering the question: should we transfer our payrolls to the cloud? This is a difficult question to answer, and one that will vary from each person you talk to. It seems everyone has their own opinions on cloud computing.
A report from Software Advice released earlier this year found that adoption rates for cloud-based payroll solutions are surprisingly low. The biggest concern over implementing such a payroll solution is due to digital security.
The report discovered that 24 percent of small and medium-sized businesses use cloud-based payroll software, while more than two-thirds (69 percent) say they’re confident in the security measures employed by the software. Also, a majority of survey participants conceded to following the rudimentary security features, like security training and two-factor authentication.
Indeed, payroll has dramatically changed over the past 20 years. Payroll was performed by a specific department primarily by hand. The transformation has been like this: punch card to miniature computers to PCs to the cloud.
Companies that have embraced cloud payrolls have already seen their costs go down. Whether it’s fixed costs predictions or more storage space at the office, professionals are espousing the virtues of cloud-based payrolls.
Linda Woolley, president of Nortek Solutions, identified the fact that businesses do not need servers, computers or even heavy air conditioning.
“There are no computers, there’s no power consumption, there’s no server rooms, there’s no heavy air conditioning, there’s more freed up floor space,” Woolley told the Canadian Payroll Reporter in Nov. 2012. “One could say, ‘Well, you’re just moving the serv – ers from in-house to the hosting provider.’ That’s true, but these companies… it’s their business to get the most efficiency possible out of their servers. You can be sure their utilization of their hardware is much more effective than any one in-house.”
A lot has transpired since that interview. Cloud computing is a lot safer than it was and businesses have become proactive in their security conditioning. Business and finance experts present the case that verification of third-party applications and systems are also imperative aspects to ensuring your move to the cloud is a successful one.
The simplicity of payroll operations is likely the most beneficial element for both the worker and the owner. One simply has to access a cloud subscription service, log in and confirm any changes that have been made, and this can be achieved on a computer or on a mobile device. Can it get any easier?
Perhaps with technological advancements all the time, payroll will undergo another facelift.