Cloud VS Desktop payroll software

Cloud VS Desktop payroll software

If you’re out in the market for an HR and Payroll Software, you have to choose between a cloud-based solution and traditional desktop software.

While purchasing a desktop/stand-alone system requires heavy investments and long term commitment, the Payroll Software industry is undergoing changes which are important to be understood. Before you make your mind, here are some factors you should keep in mind.

Let’s have a look at the terminologies first

Traditional System: Also known as “on-premise” or “legacy” solution, the standalone desktop software utilize local servers to store data and run on closed internal networks. An example of a standalone software is a video player installed in your desktop.

Cloud-based System

Commonly referred to as Software-as-a-Service (SaaS) or web-based solution, the cloud-based systems use remote servers to store data and run on the internet. The cloud technology is omnipresent – your Facebook or YouTube accounts are some good examples.

Have a look at these five reasons why you should opt for the cloud:


A full-fledged cloud Payroll Software has the capability to be integrated with Attendance and Leave Management System, Performance Management System and Travel, On boarding System, Employee Self Service Portal, and Expense Management System apart from processing Payroll, making it a one-stop solution for all the Human Capital Management activities.

You can effectively streamline core HR functions and make check stubs for your Payroll Processing to reduce redundant data entry every month and to automate calculations.

2.Data Security and Accessibility

Contrary to the common belief, SaaS solutions are quite safer to their traditional counterparts owing to the security measures taken continuously.

A back-up of the data is also store in case of an emergency. They offer better accessibility as any employee can access their data from the internet using their own mobile app device from anywhere.

The real-time data transfer means that reporting managers can see through the Status Reports conveniently at their will.


Most of the times, a standalone software vendor asks for an annual maintenance fee for updates as it may require labor and time as these systems can be update manually at the client location.

The Cloud-base Software can be update by the vendor immediately when there is a revision in the tax slabs or statutory compliance without charging any additional fees.

This is an advantage which makes businesses feel confident about them adhering to the laid down statutory compliance. It also reduces downtime for the maintenance runs and provides convenient timings for carrying out such activities so as to avoid interrupting everyday work. 

4.Hardware Compatibility

While a traditional Payroll Software is limit to the fix terminal aka “Desktop” in which it was install in your workplace only, a Cloud-based system can be access around the globe provided you own a smartphone or a tablet or a laptop apart from the desktops.

This means you can implement BYOD – Bring Your Own Device policy to improve productivity while saving big on money. They can be configure to accept data from biometric attendance devices of the company and don’t force you to buy a particular type of devices.

5.Competitive Pricing

The web-base Payroll Software is more pocket-friendly and installation is simple, the maintenance can be carry out remotely and the hardware can be select as per availability. The Desktop-base systems require servers which have very high operational costs which Cloud-base systems help you to get rid of.

Perhaps you can avail monthly subscriptions and pay exactly for the number of resources and time you use the service. The pricing for SaaS solutions are on a per-employee basis and thus you need not to worry about expanding capacity when hiring more employees.

To cut a long story short, consider all these technicalities before choosing either of them as every business has its own unique set of requirements. Your Payroll Software should fulfill your current as well as future needs. The global trend of switching to cloud technologies is a strong one and it is very good to see how Indian organizations are making the most of the opportunities provided by modern technologies.  



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