Tech Peak » Reasons Why Organizations Should Not Use Excel Sheets for Payroll

Reasons Why Organizations Should Not Use Excel Sheets for Payroll

by cathyjones
HR payroll software

When an organization is in its establishment phase, it is common for them to manage their payroll using a spreadsheet as their primary tool. It performs simple math, is affordable, and is easy to use.


However, along with the expansion of the business, things get a little more challenging. Both the employment base and the payroll information are growing with the expansion. Large data sets simply complicate matters as ensuring legislative compliance becomes challenging, accuracy becomes challenging, and so on.


So, keeping the challenges in mind, here are some reasons why relying on spreadsheets to manage your payroll is not ideal. We will also conclude with why you need HR payroll software.



Running payroll via Excel sheets makes it even more difficult because payroll is already complicated. In addition, if your workforce expands, there will be more Ctrl + C and Ctrl + V operations, which can easily modify formulae, interpret numerical formats, and ruin your accuracy.


  • Spreadsheets Require Manual Efforts


You cannot digitize your payroll activities without HR payrolls software using spreadsheets. Spreadsheets indicate that your proof collecting, paycheck slips, and other payroll activities still need to be done manually even though you’re utilizing a computer instead of a pen and paper.


  • Spreadsheets Do Not Assure Compliance


Spreadsheets are not flexible enough to automatically maintain legislative compliance. You must take the initiative to keep up with any tax legislation changes because there is little to no automation for calculating taxes. As a result, you expose your firm to non-compliance risks that result in significant penalty. This happens since it is your responsibility to submit proper records. Such records include filing tax returns every month, quarter, and year.


  • You Are Vulnerable to Chance with Spreadsheets


Spreadsheets cannot ensure the accuracy of your data or guard against mistakes. For example, inputting the data for payrolls manually leaves room for error. In addition, inaccurate data is unavoidable because several individuals frequently exchange sheets within the same department.


  • Payroll Collaboration Options are Limited


You might need to publish numerous spreadsheets to gather input from other departments because your payroll department handles confidential data. This makes data collection laborious and cooperation challenging.


  • Spreadsheets Are Difficult to Incorporate


It’s challenging to integrate spreadsheets with other corporate apps. However, integration with other programs is essential as your payrolls data expands if you want to save your HRs from doing the same tasks twice. Since spreadsheets do not offer direct system interfaces, they are dependent on intermediate programs for integrations.


Summing Up


The world has come far beyond just Excel sheets, especially when it comes to managing HR and payroll systems. There are several HR payroll software with sophisticated technology and features to ensure proper streamlining of this HR task.


The Mind Workplace, for example, is an excellent example of an all-in-one employee management software that manages the tasks of every department in an organization, including the payroll team. In fact, since the tool is a brilliant combination of HR and payroll management, it automates employee tracking (time, attendance, and leaves) and exports the final data to the payroll module.


So, if you are looking to upgrade from the traditional manual Excel sheets, get in touch with Omind Technologies to take a free trial of their comprehensive workforce management software.

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