The utility and applicability of this payroll specific software is tremendous and the industry is just waking up to the possibilities it presents. Irrespective of whether it is bundled or bought as independent software, the advantages that it imparts to a crucial component of a company, organisation or business is simply mindboggling.
The different types in which the payroll accounting software can be classified are:
- On the basis of deployment: The way in which this software is used is the basis of this type of classification. It is of two types:
- Cloud based wherein the software is deployed from a cloud server rented by the company and
- On site wherein the software is loaded onto the server purchased by the company for this purpose and kept on the company premises.
Both have their own advantages and disadvantages which need to be looked into and the risks calculated before selecting one of the above two.
- On the basis of business size: Payroll accounting for a small or a medium business is very different from those of large organisations or businesses. Software installed for large companies need to incorporate much more features than those meant for small businesses. Thus on the basis of the size of the business that the software has to cater to, it can again be divided into:
- Small business payroll accounting software and
- Large business payroll accounting software.
- On the basis of its independence: Payroll accounting software available today can either be in the form of:
- An independent package or
- Bundled with Hr software, or ERP accounting systems etc.
- On the basis of the target market: Herein too the software can be divided into two types, general software for payroll or industry specific software for payroll, depending on the market they cater to.
With so many different options available for the purchase of the Payroll software it can become confusing for the buyer. But keeping the needs of the company in the forefront will definitely help people make the right decision.