3 Factors to Consider Before Investing in Payroll Cloud Software

Payroll cloud software is the latest innovation in accounting support. Cloud-based payroll tools have become increasingly popular in recent years. With the rise of remote work and the increased ability to work outside of the office, internet-based accounting has filled a much-needed gap.

That said, not every business will benefit from cloud-based software. In fact, selecting this type of software may be a detriment to a small company. While some people prioritize the convenience of cloud-based accounting, there are several monetary, security, and accessibility-related factors to consider. If your business values a healthy budget and protecting sensitive information, a disc-based payroll tool may be the better option.



If you’re considering a cloud-based payroll tool, think through the following limitations before pulling out the company credit card.


 1. You will be tied to a subscription.

Payroll cloud software is hosted on a remote server and accessed via the “Cloud.” In order to maintain access to this server, users must pay a monthly fee. This fee helps to support ongoing server- and labor-related costs. What does this mean for users? Your ability to access your data is tied to a subscription.

Most software tools have a subscription model. However, most cloud payroll software has a monthly billing schedule – not annual billing. Additionally, subscription rates depend on the number of payers/payees you need to support. This means larger businesses, or even small businesses who use many contractors, will pay significantly more.

By contrast, disc-based payroll, like AMS, has a friendlier price structure. Users pay annually. Because there are no associated server and upkeep costs, the cost is significantly less than cloud-based alternatives. Plus, when data is stored on your own device, you won’t pay more if you have more employees. As a baseline, AMS supports up to 1,999 payers and up to 9,999 payees per payer.


 2. You don’t own your data.

When using a payroll cloud software tool, data is not stored on your computer unless you export it to a local file. This means that, in many cases, you don’t have ownership of your own data. This can be nerve-wracking for people who work in accounting. Processing payroll requires the exchange and storage of sensitive information. Whether you’re running payroll for your own company or for a client, you’ll want to ensure this information is as secure as possible.

This isn’t usually a problem with disc-based tools, like our accounting and payroll software, AMS Payroll. Because data is stored directly on your device, you have ongoing and unconditional access to it. Plus, storing information in a local file limits the potential for cybersecurity threats.


Software access is conditional.

When utilizing a payroll cloud tool, software and data access is conditional. In order to receive access to your own data, you’ll need to have a reliable Internet connection and login credentials. More importantly, you’ll have to pay and keep up with a monthly subscription cost. Businesses who struggle to meet budget requirements may miss a payment. If this happens, you could lose access to your whole accounting process – including payroll. This can devastate a business.

This type of situation is not possible with a disc-based tool like AMS Payroll. You own your data, and you won’t need to pay us to access it. Our annual software fee is nominal when compared to cloud-based competitors. If you’re on the hunt for payroll support, choose a business-friendly and reliable product with AMS.


Software Solutions from AMS

Our W2 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.