Payroll Software vs. Payroll Service: What’s Right for You?

When you start your business, doing payroll yourself seems like the obvious choice. Download a payroll software, plug in the numbers, and move on—right?

But as your team grows and life gets more complicated, DIY payroll might start feeling more like a liability than a solution.

So what’s the difference between payroll software and a payroll service—and how do you know which one’s right for your business?

Let’s break it down in plain terms so you can choose the right path with confidence.

What Is Payroll Software?

The DIY Route With Tools

Payroll software like QuickBooks, Gusto, or ADP Run is designed to help you process payroll on your own. It automates some calculations, helps you file taxes, and gives employees access to basic pay info.

Think of it like a power tool. It saves you time—if you know how to use it.

Pros:

• Lower upfront cost
  
  
• Gives you full control
  
  
• Works well for small teams with simple needs
  
  
• Accessible 24/7
  
  

Cons:

• You're still the one responsible for entering info
  
  
• You (or your team) must handle tax compliance
  
  
• Mistakes are your liability
  
  
• Limited human support
  
  

Bottom line: Payroll software is best if you’re comfortable handling the details and have the time to stay on top of payroll tasks and regulations.

What Is a Payroll Service?

A Managed Solution With Human Support

CadenceHCM doesn’t just give you tools—it gives you a team. These providers handle payroll processing, tax filing, compliance, and often offer additional services like time tracking, HR support, and benefits management.

Think of it like hiring a guide. You’re still in control, but you’ve got an expert walking with you every step of the way.

Pros:

• Offloads time-consuming tasks
  
  
• Ensures tax compliance and accuracy
  
  
• Dedicated support when things go sideways
  
  
• Can scale with your business as you grow
  
  
• Often includes HR, onboarding, and timekeeping support
  
  
  

Cons:

• Higher monthly cost
  
  
• Less DIY flexibility (but that’s the point)
  
  
• Still requires collaboration (approvals, inputs, etc.)
  
  

Bottom line: A payroll service is ideal if you’re growing, too busy for admin work, or want peace of mind that your payroll is being handled right.

Signs You’ve Outgrown Payroll Software

Still unsure? Ask yourself:

• Do you dread payroll day?
  
  
• Have you received tax notices or had to fix errors?
  
  
• Is someone in your office juggling this task alongside five others?
  
  
• Do you have hourly staff, tips, remote employees, or shift differentials?
  
  
• Is your business growing—or do you want it to?
  
  

If you nodded “yes” to any of the above, you're likely outgrowing DIY software. That’s when a payroll service becomes less of a luxury and more of a necessity.

Why Business Owners Like You Choose CadenceHCM

At Cadence, we partner with business owners who want less guesswork and more breathing room. Our clients are tired of worrying about IRS notices, fixing paycheck mistakes, and spending nights inside QuickBooks.

They’re ready for:

• Real humans to call when something breaks
  
  
• One system that manages payroll, time, and HR
  
  
• A partner who cares about their business as much as they do
  
  

We don’t just run payroll. We help you run smarter.

Final Thoughts: Choose the Solution That Grows With You

There’s no one-size-fits-all answer. If you’ve got a small team and enjoy doing things yourself, payroll software may work fine—for now.

But if payroll is taking up too much of your time, causing stress, or holding back your growth, a payroll service like CadenceHCM can bring back your focus and confidence.