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 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.