Human Resource Management Systems (HRMS) and accounting software have changed from optional tools to key drivers of business operations. A recent HR systems survey showed that a company’s HR tech spend per employee has tripled, and the number of companies using at least one HR application grew from 50% to 75%.
At the same time, the rise of remote and hybrid work after the COVID-19 pandemic meant HR and finance teams couldn’t rely on manual processes, spreadsheets, or on-site systems alone anymore. Businesses needed tools to automate routine work, keep up with regulations, protect sensitive data, and allow access from anywhere. That’s where modern HR and accounting software came in.
Before we explore why more companies want these systems, let’s explain what they do.
What Is HRMS and Accounting Software and Why Do Companies Need It?
HRMS and accounting software are digital tools that make HR and money tasks easier. They handle things like paying employees, tracking attendance, managing time off, creating invoices matching bank records, and making reports. More businesses use these tools now because they help save time, reduce mistakes, follow changing rules, keep private info safe, and let people work from anywhere at any time.
Why Businesses Choose HR and Accounting Software
The rise in demand for HR and accounting software stems from several factors working together. These include the need to automate complex regulations, budget constraints, worries about data safety, and shifts in work styles.
Let’s dive into the main reasons.
1. Cutting Down on Routine Work
A key reason companies are adopting HRMS and accounting software is to get rid of repetitive, hands-on tasks.
For HR tasks, a modern HRMS can help you:
- Keep tabs on and handle staff attendance
- Keep and update employee info in one place
- Handle and approve time off requests
- Deal with claims and HR papers
- Make payroll math easy when linked to payroll software
When it comes to accounting, software helps with:
- Matching bank transactions and reconciling accounts
- Making invoices, tracking them, and checking payment status
- Keeping tabs on inventory and sales/purchases
- Creating financial reports in real-time
- Figuring out GST and getting ready to submit it
Teams can work from one central data source instead of putting info into many spreadsheets. This cuts down on manual data entry, speeds up end-of-month closing, and makes mistakes less likely. In the end, HR and finance pros get back precious time to analyze, plan, and think —rather than cleaning up data.
2. Following Laws and Rules
Laws about jobs and taxes keep changing. This includes shifts in GST, rules about paying employees, and what companies must tell the government. Businesses need to stay updated or they might face fines.
HRMS and accounting software help in these ways:
- They get regular updates to match the newest legal rules
- They use the right formulas and rates to figure out pay and taxes
- They keep detailed records of changes and approvals
- They store records in a way that’s easy to search during checks or audits
Instead of keeping track of every new rule by hand, companies can count on their systems to handle math and record-keeping based on current rules. This matters a lot for small and medium businesses. They might not have a big team to handle rules, but they still need to meet the same standards as larger companies.
3. Cost Efficiency in the Long Run
At first look, software might add to expenses. But when used right, HR and accounting software have a positive impact on businesses’ bottom line over time.
Here’s how:
- Less manual work cuts down hours spent to enter data, balance books, and fill out forms.
- Fewer errors lead to less time fixing mistakes fewer fights, and lower chance of fines or penalties from wrong reports.
- Smoother processes (like automatic payroll, claims, billing, and GST math) cut down on office work.
For HR teams, HRMS cuts down on paperwork shuffling for leave, claims, or attendance changes. For finance teams, accounting software helps track expenses, spot unnecessary costs, and prepare taxes more . These small improvements stack up over time leading to big savings and better use of resources.
4. Better Data Security and Protection
HR and accounting departments handle some of the most sensitive info in any company—employee details, pay data, bank accounts financial results, and more. When people store these in physical files unprotected spreadsheets, or shared email threads, they risk losing data leaking it, or letting unauthorized people see it.
Current HRMS and accounting programs address these concerns by providing:
- Data encryption to keep information safe during storage and transfer
- Access control based on roles allowing approved users to see or change specific data
- Safe ways for users to prove their identity and log in
- System records and audit paths to monitor who accessed or changed what and when
By putting information in one secure well-managed system, companies can better meet their data protection requirements while giving HR and finance teams peace of mind that sensitive data stays safe.
5. Access from Anywhere, Anytime for Today’s Workforce
Remote and hybrid work setups aren’t just short-term fixes anymore—they’ve become a regular part of work life for many companies. This means HR and finance processes need to run well even when teams work outside the office.
Cloud-based HRMS and accounting software make this happen by:
- Letting HR teams handle attendance, leave, onboarding, and payroll from anywhere
- Giving managers the ability to approve requests see team info, and access reports from a distance
- Allowing finance teams to check financial records okay payments, and create reports while on the move
- Helping businesses with multiple stores, offices, or work sites by bringing all data into one main system
Instead of going to each location or waiting to get paperwork, HR and finance teams can do their work right away keeping things moving and quick to change.
HR & Accounting Software: More Than Just a Tool, It’s a Smart Move
While the main perks start with doing things faster and with less effort, the long-term value goes beyond that. By showing people info and money matters as they happen, HRMS and accounting software help employers:
- See workforce costs and output more clearly
- Keep an eye on profits, cash, and spending habits
- Choose faster about hiring, money plans, and where to put money based on facts
In other words, these tools aren’t just about “doing the work faster”—they help businesses plan smarter, stay compliant, and remain competitive in a changing environment.
To Wrap Up
The growing need for HR and accounting software shows how businesses are changing. Companies now want tools that do more than just crunch numbers or keep records—they need systems that automate tasks help with rules, keep data safe, and allow remote access all in one reliable package.
When companies use HRMS and accounting software, they help HR and finance staff avoid boring repetitive work. This gives these employees time to tackle important tasks like planning the workforce analyzing finances, and developing strategies—which leads to better results for the business.
At Info-Tech, we have a low-cost, extensive HRMS & accounting software package designed to help businesses make their HR and financial processes smoother without hassle.
Call our sales team at +65 6297 3398 or send an email to sales@info-tech.com.sg to learn how we can help you modernize your HR and accounting systems.
Frequently Asked Questions:
Why do more companies want HR and accounting software?
Companies need to automate routine work, follow changing rules, keep sensitive information safe, support employees working from home, and see HR and money matters in real-time—all things that HRMS and accounting software can do.
How does HRMS help HR teams?
HRMS puts employee data in one place and takes care of tasks like tracking attendance, managing leave, processing claims, and linking payroll. This cuts down on paperwork, reduces mistakes, and lets HR teams spend more time on getting employees involved checking performance, and planning for the future.
Why should SMEs invest in accounting software?
Accounting software helps SMEs handle invoices, expenses, bank checks, and tax reports better and with fewer errors. It means less need for manual spreadsheets fewer mistakes, and quick financial insights to help make decisions.
Is cloud-based HR and accounting software secure?
Trustworthy cloud systems encrypt data, require secure logins, control access based on roles, and back up . These steps protect sensitive HR and financial information from unwanted access or loss.
Can HR and accounting software work together?
Most new systems can connect with each other. For instance, HRMS can send payroll and salary info straight to accounting programs. This leads to better reporting cleaner books, and quicker month-end closing.
