3 Drawbacks of an Integrated HR Payroll System

If your business uses an integrated HR payroll system, you might be looking for an alternative. Increasingly, popular accounting tools are adding an HR integration element to standard payroll software. This can be a benefit to some companies. But, for most, it is an irritating inconvenience. HR and payroll are discrete functions that require different skill sets. While they may share data, combining these tasks into a single software can be overwhelming for HR and accounting professionals.

Luckily, there’s an alternative to the integrated HR payroll system. Advanced Micro Solutions provides accounting and payroll software designed for multi-purpose use. In other words, users can export all relevant payroll data to share between departments. For most companies, this is all the HR and payroll overlap you’ll need.



Avoid Combining HR and Payroll

Choosing an integrated HR payroll system can be good for some companies but disastrous for others. Here are the key drawbacks to an integrated payroll system:

  • HR and Payroll Serve Discrete Functions: HR, or human resources, deals primarily with interpersonal relationships, conflict, and compensation changes. By contrast, payroll processing handles employee payment distribution, both in the form of regular paychecks and bonuses. These departments often communicate with each other. For example, if an employee changes their retirement contribution, that information is brought to HR and delivered to payroll. However, that is where the similarities end. Sharing a data set is not enough to warrant combining separate processes into a single tool.
  • Integrated Payroll is Difficult to Learn and Use: An integrated HR system will assist both HR and payroll professionals. This means that those professionals will either need to fully avoid a large section of software functions or learn auxiliary skills. This can be overwhelming for small departments.
  • Achieve the Same Benefits with Exported Payroll Data: As mentioned above, HR and payroll share employee data. This dataset includes information like compensation, deductions, additions, tax status, and personal information. However, a business does not need to purchase an integrated payroll tool to make the sharing process more efficient. All you need is a payroll tool that can export data to share between departments.


Choose an Integrated Payroll Tool from AMS

While AMS does not provide an integrated HR payroll system, we have an excellent alternative. We offer an accounting and payroll software that integrates with other accounting tools. This modular structure allows users to access customized software at a budget-friendly price.

Here’s how it works: Users purchase the W-2/1099 Forms Filer, our base platform. Then, they select which modules they would like to add. Many customers choose to add AMS Payroll, the payroll platform, but we offer a variety of accounting services. See below for our full catalogue.

Investing in an integrated HR and payroll system can work for some companies. But, when it comes to small and growing businesses, it is often a mistake. For those who want a user-friendly and effective payroll tool, choose AMS. Try our free demo software today, and give our Sales and Information team a call at 800-536-1099 with any questions.

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.