Paylocity Expands Platform with New Finance Integration, Enhancing Operational Efficiency and Visibility

Paylocity Holding Corp has launched "Paylocity for Finance," a new product suite integrating finance and HR functions into a single system. The platform includes tools for spend management, AP automation, and headcount planning. The expansion aims to enhance operational efficiency and visibility, but may face challenges in adoption and integration for existing clients. The company's focus on AI and automation positions it as a competitive player in the HCM market.

Paylocity Holding Corp has announced the launch of "Paylocity for Finance," a strategic expansion of its modern workforce platform into the Office of the CFO. This new product suite integrates finance and HR functions into a single system, aiming to enhance operational efficiency and visibility. The platform includes tools for spend management, AP automation, and headcount planning, positioning Paylocity as a competitive player in the Human Capital Management (HCM) market.

As part of the launch, Paylocity has integrated Airbase, an award-winning spend management solution recognized as a Visionary in the 2025 Gartner® Magic Quadrant™ for Accounts Payable Invoice Automation. This integration enables finance teams to automate operations, gain real-time visibility, and deliver a seamless, intuitive employee experience. By managing both payroll and non-payroll spend in a single system, grounded in the employee record and tightly integrated with the general ledger, Paylocity for Finance eliminates disconnected systems, manual processes, and approval bottlenecks [1].

The platform includes five core modules: AP Automation, Expense Management, Corporate Cards, Guided Procurement, and Headcount Planning. These modules support strategic planning and spend management, and are integrated with Paylocity’s HCM platform and top ERP and general ledger systems such as NetSuite, QuickBooks, MS Dynamics, and Sage Intacct. This integration enables real-time financial data and seamless accounting reconciliation, accelerating the month-end close and tightening financial control [1].

The expansion of Paylocity into finance represents a significant strategic move to capture more enterprise value. By connecting HR and finance through a unified platform grounded in the employee record, Paylocity addresses a key pain point for mid-market organizations: disconnected systems that create inefficiencies between HR and finance departments. The integration of Airbase provides immediate credibility in this space, and the five core modules position Paylocity to compete directly with dedicated spend management platforms while offering the advantage of native integration with payroll and HR data [2].

However, the successful adoption of this new platform may face challenges. Existing clients may need to adapt to new workflows and processes, potentially leading to initial resistance. Additionally, the integration with major ERP systems is crucial for adoption, as it addresses potential barriers to implementation. This product expansion could create significant cross-selling opportunities within Paylocity's existing customer base while potentially expanding their target market. For current customers already using Paylocity for HR and payroll, adding financial modules could increase average revenue per customer and improve retention by making their platform more embedded in clients' operations [2].

Paylocity's focus on AI and automation positions it as a competitive player in the HCM market. By unifying data to connect critical workflows, Paylocity delivers enhanced visibility, improved efficiency, and an exceptional user experience that drives value through increased adoption. A fully integrated mobile version of the experience is scheduled for release in Fall 2025, further enhancing accessibility and user adoption [1].

References:
[1] https://www.paylocity.com/company/about-us/newsroom/press-releases/paylocity-advances-one-unified-hcm-and-finance-platform-with-launch-of-integrated-spend-management-solution/
[2] https://www.stocktitan.net/news/PCTY/paylocity-advances-one-unified-hcm-and-finance-platform-with-launch-384a9tx2art7.html