Six Reasons Why Spreadsheets Aren't The Best Method For Handling Payroll
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Most businesses start small, and when they do, a spreadsheet is the first choice for managing their business operations, with payroll being no exception. It is inexpensive, performs basic math tasks, and is convenient to use.
However, things get a little more complicated as the company gets larger. The employee base is growing and so is the payroll data. Suddenly, regulatory compliance becomes a challenge, accuracy becomes difficult, and large data sets only make things more complicated. Below are important reasons why you shouldn't rely on spreadsheets for payroll and why a proper payroll management software like IceHrm is important for your organization.
Spreadsheets increase the complexity of data
Payroll is complex, and running payroll in Excel spreadsheets makes it even more complicated. When you have a growing number of employees, you find yourself frequently typing Ctrl+C and Ctrl+V, which can easily lead to you changing formulas, misinterpreting number formats, and compromising your accuracy.
Spreadsheets do not automatically ensure compliance
Spreadsheets are not versatile enough to automatically ensure regulatory compliance. Since there is little to no automation in tax calculation, you must take the initiative to stay up to date with any changes in tax laws. You must prepare accurate tax return reports every month, quarter, and year, leaving your business vulnerable to violations that result in hefty penalties.
Spreadsheets depend on manual processes
You can’t digitize your payroll with spreadsheets. Even if you use a computer instead of pen and paper, spreadsheets mean that receipt entry, payroll, and other payroll processes still need to be done manually.
Spreadsheets leave you vulnerable to coincidences
Spreadsheets do not protect your data integrity or prevent errors. Payroll data is entered manually, leaving the door open for errors. Because the tables are often used by many people within the same department, inaccurate data is inevitable.
Spreadsheets are not easy to integrate
Integrating spreadsheets with other business applications is difficult. As your payroll data grows, integrations with other applications are necessary if you want to avoid duplication of effort for your HR department. Spreadsheets rely on intermediary applications for integration because they do not support direct integrations with other systems.
With IceHrm, you can use data from other modules such as leave, attendance for payroll calculations. Click here to learn more about this feature.
Spreadsheet collaboration capabilities are limited when it comes to payroll
Because your payroll department works with sensitive numbers, you may need to share multiple spreadsheets to collect input from different teams. This makes data collection tedious and collaboration difficult.
Looking for a HR management software that can help you automate payroll processing and other HR processes? Check out IceHrm today!
