The Pros and Cons of SaaS Payroll

SaaS payroll is an increasingly common type of accounting tool. This software is a subscription-driven application. Instead of paying a one-time fee, the user pays monthly or annually. Users access these tools via a web-based platform rather than a software download. This means data is stored online and/or in the Cloud. The result is that users can access their sensitive data from anywhere and on any device – given there is reliable connectivity.

These days, SaaS, known formally as Software as a Service payroll, is pervasive in the small business world. But is this type of tool worth it? Below, we’ll investigate the pros and cons of SaaS payroll, as well as what alternatives might be a better fit for small businesses.



The Pros of Software as a Service Payroll

Depending on what a business needs, SaaS might be the best option. Here are some of the most popular benefits of this type of payroll:

  • Users can access payroll data and processes from anywhere. There must be a reliable Internet connection. The user must also have the required login information.
  • SaaS doesn’t often have a start-up cost. Instead, users begin paying the monthly subscription price as soon as they create an account and connect payment data.
  • Because the tool is web-based, SaaS automatically updates whenever new features are available.


The Cons of Software as a Service Payroll

While SaaS payroll is a popular tool, it has several drawbacks. Consider the following characteristics of software as a service:

  • When sensitive information is stored on the Internet and the Cloud, users risk data security. Many businesses are not eager to trust web-based providers to safeguard their most sensitive business information.
  • Updates are mandatory. Because these tools are web-based, users experience updates all at once. This is irrespective of whether the user wants an updated program. In some cases, these updates can be more of an inconvenience than a benefit.
  • SaaS relies on constant and reliable Internet access. This is not always available in parts of the United States. Additionally, if your WiFi is down, you’ll have to wait until service is restored until you can do your job.
  • Payment increases can be unpredictable and hefty. Many SaaS payroll tools start users with an introductory rate, then increase that monthly payment after six or 12 months. This might not be sustainable for businesses with tight budgets.


The Verdict

In most cases, the disadvantages of an SaaS tool outweigh the advantages, especially for small businesses. Unpredictable updates and price changes are often not sustainable for new and growing companies. Plus, many entrepreneurs value the data security that comes with a disc-based accounting software.


Get Everything You Need with Advanced Micro Solutions

AMS offers the security, usability, and budget-friendliness a small business needs in an accounting and payroll software. Our disc-based software prioritizes small business needs. While SaaS payroll options can be useful for some, they are not always the best option. If you’re curious to see how AMS Payroll can work for you, try our free demo software. Additionally, our Sales and Information team is available at 800-536-1099 to answer any lingering 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.