Traditional payroll is managing the entire payroll process manually, without the use of any systems. It is entirely dependent on human effort. This would even include calculating statutory deductions and keeping track of attendance data. Due to the high initial setup costs, many small businesses have been reluctant to adopt new software. It would only make sense for players at the enterprise level to be able to use software to improve their operations. Businesses have realized the significance of cutting-edge IT technologies and solutions in today’s competitive marketplace. Even though the company knows how much it costs to acquire and maintain new technology, it has grown to be more than a necessity for businesses of all sizes. In today’s cutthroat and competitive business ecosystem, one of the top priorities for companies is to be agile and efficient in HR operations and workforce management without blowing the budget.

5 Reasons to break up with traditional payroll

In this article, we point out all the reasons to break up now with the traditional payroll system:

Affordability: Companies don’t have to pay upfront for traditional on-premises systems like hardware and server infrastructure with cloud payroll software. Additionally, it eliminates the cost of hiring people to maintain such systems. Cloud payroll software is easier to update and maintain than traditional payroll management systems. Most of the time, the vendors update it once or more times a year without your in-house IT team being involved. The vendor is also in charge of keeping it running smoothly, making your life easier and less stressful.

Because cloud payroll software is a disruptive technology, its prices are reasonable for companies of all sizes, including start-ups. As a result, small and medium-sized businesses (SMEs) and new businesses can enjoy the advantages of payroll software of the same quality as those found in large corporations without having to blow their budgets.

Scalability: While cloud-based payroll software has pre-built features, it still allows for configuration and personalization of settings. You can, for instance, personalize offer letters and salary breakdowns for various employees. User roles, API access, contractor payments, reimbursements, leave and attendance tracking, and many other settings can all be set up quickly. A cloud-based HRMS solution is entirely scalable, making it simple to adjust to organizational changes. HR software hosted in the cloud can quickly adapt to your company’s changing payroll and HR Management requirements.

On the other hand, when a business expands and hires new employees, on-premises solutions rarely offer flexibility and can become cumbersome. Cloud-based payroll remains user-friendly and far less complicated than traditional spreadsheets or legacy systems, even as new roles, salary structures, and complexities are added.

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Accessibility: We can complete most of our work outside the office in the digital age and rapidly changing economy. HR managers can approve and process payroll from any device, at any time, with cloud-based payroll software.

This mobile accessibility feature is one of the most significant advantages because many businesses have multiple workstations across various locations and time zones. Once employees clock in and out on their devices, HR managers can view, review, and approve timesheets directly from their mobile phones, tablets, or laptops.

Security: For any organization, data is a valuable asset. As a result, maintaining privacy and confidentiality is essential. It is more likely that data will be hacked if it is stored locally. Your local hard disk, for instance, may suddenly fail. It is also more vulnerable to theft. Because of this, it is precarious to store confidential data locally.

Cloud payroll has cutting-edge data security features like automatic intrusion detection, the most up-to-date antivirus and firewalls, and knowledgeable IT professionals who monitor your data for any unusual activity. Encryption of data is another crucial feature because even if security is breached, attackers won’t be able to understand your data.

Technology: A cloud-based payroll solution simplifies and automates key aspects of payroll processing. For example, processing payroll, tax, and TDS returns is no longer a laborious and time-consuming process. Thanks to the automated earning and deduction computation. Make way for user-friendly payroll by eliminating traditional and complicated payroll processing steps.


Compared to traditional methods like spreadsheets or on-premises payroll software, cloud payroll systems offer several advantages. In fact, critical business management solutions like ERP, CRM, and, without a doubt, payroll software are among the many applications for which many businesses are already making a significant shift to the cloud. With Enspire HR, companies can manage their payroll operations from start to finish. The payroll staff can digitize time-consuming paperwork through self-service portals on the web and mobile apps. Enspire HR is one such wonderful HRMS tool that automates the HR processes and takes care of promoting healthy workplace culture.  Call us at +91 99510 53333 or write to us at to find out more.

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