In the olden days, spreadsheets were used for managing payroll, but are they still efficient?
Payroll is an important process for every company for which the employers pay their employees for the work they have done. An efficient payroll system like Million Payroll Software is one that organizes employee payments and filing of employee taxes which includes tracking of employee working hours, calculating salaries, paying employment taxes to government.
Therefore, by running payroll manually is very tedious and is prone to errors, disorganized payroll processing and limited capabilities.
- Tendency of errors
- Disorganized payroll processing
- Limited capabilities
Manual payroll processing is prone to human error; a single wrong entry could result in a completely inaccurate record. Resolving errors and double checking data is tremendously burdensome, if the error cannot be found, data will have to be recalculated which takes up a lot of valuable time.
The use of spreadsheets to process payroll will result in multiple sheets and files as you need different documents for employee information, payroll, leave, claims and other data. It can easily get too complex and limits quick data analysis or a clear overview which makes it difficult to predict customer’s needs and demand.
Manual methods of payroll processing have very limited capabilities for example, leave application has to be tracked via hard copies of forms and standard reports, CPF files, bank GIRO and pay slips cannot be automatically generated with a click of a button.