Payroll Processing Systems vs ERP Systems
Enterprise Resource Planning or ERP has been a worldwide phenomenon among corporations within the last decade. Companies have realized that in order to gain profits and have a competitive advantage, they need to have robust computer systems to handle their end-to-end administrative functions. For a company’s Human Resources (HR) functions, for example, customized ERP software such as SAP and MS Dynamics offer various services from payroll management to leave tracking. On a smaller scale, there are also specialized payroll processing systems that offer more simplified payroll management services.
Criteria 1: Price
ERP systems can cost a company up to millions of dollars. This is because of the strict licensing fees that come with every installation of an ERP suite. You may be billed not just for the software itself but also for the licenses, support fees and the training fees needed to run it. In comparison, most payroll systems do not require licenses and are very easy to implement, saving time and money for your company.
Criteria 2: Services
The key feature about ERP systems is that they are able to cover a wide range of functions for your company, such as HR, logistics and finance. However, this might end up as overkill for your company – you might end up with chunks of features you don’t really need. Payroll systems, in comparison, offer specific and standalone services for all your employee management needs. Because of this, you get just exactly what you need, especially when you are working with a limited budget.
Criteria 3: Knowledge
The most complex ERP systems require industry certification and investment in training and development for your employees. This can represent an added and ongoing cost for your company. The services offered by a payroll processing company, meanwhile, require little training. It is simply open to any company needing the service, whatever their skill set.
Criteria 4: Speed
Deploying an ERP system to a company can take at least several months to years. This represents a return on investment that may take decades to achieve. With a payroll processing system, meanwhile, no complex installations are needed, allowing you to start the process and reap the cost savings from it as soon as possible.
Depending on the profile of your company, you will be able to determine which type of software is best for you, whether it is ERP or a payroll processing system. Always remember to factor in the costs, time and hidden fees needed to make this happen, to get a full picture of your investment.
Criteria 1: Price
ERP systems can cost a company up to millions of dollars. This is because of the strict licensing fees that come with every installation of an ERP suite. You may be billed not just for the software itself but also for the licenses, support fees and the training fees needed to run it. In comparison, most payroll systems do not require licenses and are very easy to implement, saving time and money for your company.
Criteria 2: Services
The key feature about ERP systems is that they are able to cover a wide range of functions for your company, such as HR, logistics and finance. However, this might end up as overkill for your company – you might end up with chunks of features you don’t really need. Payroll systems, in comparison, offer specific and standalone services for all your employee management needs. Because of this, you get just exactly what you need, especially when you are working with a limited budget.
Criteria 3: Knowledge
The most complex ERP systems require industry certification and investment in training and development for your employees. This can represent an added and ongoing cost for your company. The services offered by a payroll processing company, meanwhile, require little training. It is simply open to any company needing the service, whatever their skill set.
Criteria 4: Speed
Deploying an ERP system to a company can take at least several months to years. This represents a return on investment that may take decades to achieve. With a payroll processing system, meanwhile, no complex installations are needed, allowing you to start the process and reap the cost savings from it as soon as possible.
Depending on the profile of your company, you will be able to determine which type of software is best for you, whether it is ERP or a payroll processing system. Always remember to factor in the costs, time and hidden fees needed to make this happen, to get a full picture of your investment.
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