Why to Avoid Integrated HR and Payroll Systems

These days, integrated HR and payroll systems are a relatively common software combination. In some cases, companies may prefer an all-in-one software solution that combines payroll and HR processes. This can make sense. These departments utilize similar employee data, including salary, tax responsibility, and personal information. But for most businesses, the similarities stop there.

Combining HR and payroll systems is not a good idea – especially for small and growing businesses. Instead, look for payroll tools that can integrate with other accounting software, like forms filers, electronic filing support, and more. If you need an HR software, look for a standalone product.



Advanced Micro Solutions offers an excellent payroll platform for businesses of all sizes. AMS Payroll, our payroll module, integrates seamlessly with our other software tools. If you’re reconsidering integrated HR and payroll systems, this is a good choice.


The Pros and Cons of HR Integration

In some businesses, HR and payroll work in tandem. HR is often tasked with entering and updating employee records. Then, payroll takes that information to generate and record accurate paychecks. The departments overlap in that they will often share a dataset. The processes, however, are separate and discrete.

Some companies like to invest in all-in-one software platforms. These tools combine most business processes – from HR and payroll management to timesheet maintenance and personnel communication. This can be a great option for large companies with robust internal branding. In some cases, they may even elect to develop a software unique to their company. However, these tools can be very expensive. They are unsuited to businesses with tighter budgets and a growing employment roster.

For these reasons, most companies prefer to keep HR and payroll separate. They have some aspects in common, but many find that there are too many differences to justify integrated HR and payroll systems.


Find a Better Integrated Solution with AMS

Advanced Micro Solutions offers a different type of integrated HR payroll system. Our software tools integrate modularly. This means that users purchase our base platform, the W-2/1099 Forms Filer, then add modules to build a customized software suite. This allows our customers to access a personalized tool at a friendly price. For reference, our full software suite is listed below:


Those who choose AMS Payroll can easily transfer data to and from a separate HR software. Our tool imports data from QuickBooks, PeachTree, Excel, and tab delimited text files. Users can export data to tab-delimited tax files and/or QuickBooks General Journal. This makes it easy to share employee tax, wage, and personal data within an organization.

If AMS sounds like a good fit for your business, let us know. We offer a free demo software for potential customers to try. Those with questions can give our Sales and Information Team a call at 800-536-1099. Integrated HR and payroll systems are rarely a good idea, but an accounting-integrated payroll tool will work for everybody.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.