Payroll Software vs Spreadsheets

For payroll, in all regards software is superior to spreadsheets. Using software for payroll is better for a company’s functionality. The benefits of payroll software go beyond saving time and efforts. No need to worry about complex calculations and tax regimes. Let’s have a closer look at various aspects of Payroll Software.

Human errors

This is one of the key constraints in your business growth which can be eliminated using software for payroll processing. Using spreadsheets requires too many manual efforts like data entry, calculation, copy-paste, etc. Achieving 100% error, free payroll is unattainable with manual methods. A software reduces the manual efforts by huge margins automating all data entry and calculations. The software can also identify the error in number or text and you can easily rectify them.

Calculation

Everybody is not a genius in Mathematics. The calculation for payroll is distinct from regular mathematics, it includes deduction as PF, ESI, TDS, etc. You have to calculate the leaves of employees, keep a record of their in and out time. Calculating all the above and dispersing the salary on time is tough. No need to mention, the criteria changes with the company’s growth and new amendments in Government’s law structure. Counting on HR employees for each and every change is not practical.

Specialized software, on the other hand, will ease out the processes. Most of the calculations are done automatically and you get the correct output every time.

Employee Relation

“Strategies never make business, the employee does.”

The roots of every successful business lie with the employee base. If you have a strong employee base, who are responsible and have respect for the company your business is ought to grow. No one can stop you. Directly or indirectly proper payroll affects your business to a great extent. If an employee is happy, he will give his 200% to the company, this will improve your business productivity. Using payroll software, you can disperse the salary on time, you can send specialized emails and SMS to the employee on birthdays and anniversaries which builds a personal relationship with your employees.

People dependency

Using spreadsheets makes payroll process dependent on people. And one needs to be extremely careful while managing payroll spreadsheets. Any ignorance can lead to serious losses to the reputation of the organization. Even a simple issue like a forgotten password or instant resignation of HR personnel can result in a chaotic situation.

Employee Self-service (ESS)

ESS is a portal which provides direct access to the employee. They can directly apply for leaves, attendance, payroll information, etc. It is an online portal which enables the employee to handles the processes on their own. This marks a reduction in the workload of HR employees and builds a transparent working culture. Using the feature allows the smooth transition of employee data into the payroll system. The benefits of ESS portal is not attainable using spreadsheets. If each employee calls queries, this will prove to be highly time taking for the HR team.

Conclusion: Using spreadsheets to manage payroll means complex processes and human errors. This is risky and you can unknowingly generate the wrong payroll. If you want to leave the worries of payroll at the back seat and want your core business to take up the front, Payroll software is what you should invest for.