Difference between Desktop and Cloud Payroll Software
Difference Between Desktop and Cloud Payroll Software : An Overview
In this post, we will explore the differences between desktop and cloud payroll software, including their advantages and disadvantages.
Let’s look at each section:
What is payroll software?
Payroll Software organises all the tasks of employee salary management, payment, and filing of taxes. It is a technology that aims to automate the payroll processes. Functions that payroll software includes are :
- Salary calculation
- Calculation of with-holdings or deductions
- Benefits and tax calculation
- Calculations based on attendance and leaves
- Keep track of working hours.
- Paying employment taxes to the government
- Returns filing
- Reporting
What is a desktop payroll software?
Desktop payroll software is installed on your computer. Usually, you purchase it as a disk or digital download from the software provider’s website. The software and the payroll data are stored locally on your computer. An Internet connection is only needed when you need to update the software or for filing statutory returns. Desktop-based software also tends to have a one-time or per-licence pricing.
What is a cloud payroll software?
Cloud Payroll software is not installed on your computer. It is stored in the cloud. You need to log in to the application (software on the cloud) with a web browser before you can start using it. The application and your data are stored remotely in a secure data centre and can be accessed from anywhere. Cloud-based software tends to have a monthly subscription as a payment.
Choosing a Payroll Software
- Analyse the size of your business.
- It depends on the number of employees in your organisation.
- You have to decide how much you will spend on payroll processing.
- Desktop or cloud-based Payroll software?
- Check the features of the payroll software.
- You need to test the compatibility and flexibility of the software.
- You will have to look at the security of the software whether it is password protected or not.
Advantages and disadvantages of cloud-based payroll software
Advantages
- Payroll files can be accessed from any internet-connected device, allowing multiple people to work at the same time. Other users can see updates nearly immediately, allowing easy communication and collaboration.
- Cloud-based software reduces the need to install programs or configure software on many computers.. With easy access from any device, software upgrades are automatic, saving time and effort.
- Data is stored on secure servers in data centres and encrypted, making unauthorised access difficult. Automatic backups ensure that your payroll data is consistently updated and protected.
- Cloud payroll software allows you to work from anywhere, giving you greater flexibility and adaptability in managing your payroll tasks.
Disadvantages
- Power failures, server reboots, and delays can all affect business operations. These incidents can cause temporary downtime, which can affect daily operations.
- Because the software depends on an internet connection, any connectivity issues may prevent you from accessing payroll files and processing capabilities.
By considering the advantages and disadvantages, you can decide whether cloud-based payroll software best fits your company’s needs.
Advantages and disadvantages of desktop-based software
Advantages
- Your payroll information is stored immediately on your computer, giving you complete control.
- The software runs locally on your computer, so you do not need an internet connection.
- You don’t have to worry about downtime caused by data centre power failures because everything runs on your computer.
Disadvantages
- You must manually backup your data to an external hard drive or a cloud service like Dropbox. This requires extra time and effort.
- If you fail to back up your data or your computer is hacked, damaged, or stolen, your payroll information may be affected.
- Managing manual backups and protecting data can be inconvenient and time-consuming.
Difference between Cloud and Desktop payroll software
| Features | Cloud | Desktop |
| Internet connection | It is necessary to have constant internet access to work. All the data and calculations needed to process payroll are located on a remote server. | It doesn’t necessarily have constant internet access to work. It is only needed when sending data to companies such as banks and tax institutions or when you have an update. |
| Access | Data and other information can be accessed anywhere, anytime. | It is only accessible on one computer. |
| Security | Data is kept securely in the cloud. | Data is kept securely on your local device. |
| Updates | It automatically updates. | It either gets automatically updated or will require you to check manually whenever the update is available. |
| Users | Multiple users can work only if server system access is provided at the same time. | It allows users to add more features. Because it’s run on local level |
| Storage | Storage can be expandable based on data stored | Fixed amount of storage is required to install software and then can be expanded based on data size |
| Integration | Seamless integration with another cloud-based system, that provides a real-time view of the data from anywhere. | Limited ability to integrate with another system. |
| Back up | Automatically backed up and updated. | Manual backup and update installation required. |
This concludes our post on Desktop and Cloud Payroll Software. If you have any questions or doubts, please post them in the comment section below.
Saral has payroll software available on both desktop and cloud. Enjoy seamless automation, real-time statutory compliance, and effortless calculation. For more information, visit: Saral Payroll Software
