In business, the end of a work month or week means different things to the employees and administrative unit. For the employees, it’s a time to expect and receive their work pay. While for the administrative unit, it means organizing the company’s payroll and sending out their salaries.

The administrative unit, especially the HR manager, dreads this time of the work month or week because organizing a payroll system is an arduous task. Organizing payroll only seems strenuous when you do it manually.

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Operating a manual payroll system using a simple excel spreadsheet is okay for a business with 2-3 employees. Inputting their work information would be less tedious because they are just three. But, what happens when your business expands and you need to employ over 10 employees? Would a manual payroll system still be able to cater to your business’s payroll needs?

Well, the answer is yes and no. “Yes”, because you can try and “no” because the results might always contain errors. To evade all the disadvantages of a manual payroll system, technology gave us CLOUD-BASED PAYROLL SOFTWARE.

In this article, we are going to be looking at several ways in which cloud-based payroll software differs from a manual payroll system, and why you should get rid

Errors free

A manual payroll system is prone to having errors especially in inputting and recording employee numbers. Also, handwritten numbers can be misread or misinterpreted. The truth is nobody expects 100% perfect work from any human. They always make mistakes. Hence, the need to use artificial intelligence through cloud-based payroll software to prevent human errors.

With cloud-based payroll software, the HR manager does not need to spend long hours at their desk inputting numbers. Rather, each employee can be given login access to the software, so that they can input their bank details and other work information by themselves. This greatly reduces the possibility of errors, since it’s not one person inputting it.

Number of tasks

One cloud-based payroll software can cater to almost all the needs of the administrative unit of a business. But it’s a different ball game with manual payroll service. With manual payroll, you would need to draw up several sheets that will take care of each administrative duties.

An efficient cloud-based payroll software carries out automated payroll integration, direct deposit, tax filing services, employee benefits and bonuses, bi-monthly or weekly budget reports of your company.

Employee Productivity

It is common knowledge that not everyone knows how to operate a manual payroll system. Sometimes, only the business owner, the accounting manager, and the HR manager have sufficient knowledge to understand and use one. The time and effort that could have spent on other business tasks would then be channeled into organizing payroll. Hence, increasing the workload on the aforementioned staff.

This is another cogent reason why your business should get rid of a manual payroll system and employ cloud-based payroll software. Payroll software offers automated complete payroll services. Also, it doesn’t take long to train employees to operate it. 


Important employee data are at risk of getting lost or stolen with a manual payroll system. Those hard copy files and spreadsheets can get wet or get burnt and become useless thereafter. To assure your employees that their personal information is protected, use cloud-based payroll software.

All payroll software has strict privacy policies that protect every information inputted into their cloud. No third party can access it without due permission.

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Manual payroll services are non-compliant. It requires extra attention and effort to follow and abide by the legislative update. Not being able to meet up with tax deadlines and every other deadline attracts penalties from the government. Payroll software evades this by sending you daily notifications. Also, you can set reminders to notify whenever a deadline is approaching.


As you can see from the difference above, cloud-based payroll software beats manual payroll systems in every aspect. Hence, Cloud-based payroll software should be used by every small business across the world. I know that payroll software comes with a cost, but it is cost-effective in its entirety. You will not regret spending any penny you spent.

All you have to do now is find the right payroll software to offer your business complete payroll services.