Using Excel as a tool for payroll processing started when the other options were either:
But today, it is safe to say that Excel is one of the most inadequate tools for payroll management.
**Do you relate with the above scenario?
The decision to opt for spreadsheets usually rests on a few faulty assumptions, which are not usually backed by data.
Assumption: “Excel gets the job done.”
Reality: Countless payroll executives and the like, struggle with the application of row upon row of formulae and rules. One wrong click and the whole sheet goes for a toss. Accuracy is hit and penalties get slapped on the organization. In short, what results is utter confusion.
Assumption: “Excel is simple and suits my needs.”
Reality: This one's our absolute favorite! Organizations grow over time. Employee count increases and statutory compliances vary from region to region. This makes payroll processing more complex, time consuming and cumbersome as the head count and laws change.
Assumption: “Everyone knows how to use Excel.”
Reality: Processing payroll in Excel takes someone skilled. With all the formulae, VLOOKUPs, etc., it takes someone knowledgeable and highly trained about the functionalities and shortcomings of spreadsheets. Even if you are well trained, how many hours do you waste on manual and redundant work? According to a research2, 60% of companies that use Excel take seven or more days to process payroll.
Other common issues
RELATED POST: 5 Problems with Payroll Management
However, if you still prefer to continue payroll management with Excel, please ensure you follow these best practices:
Alternatively, there's an easier, faster, highly efficient and value-for-money solution available on the cloud. With automated payroll management and other seamlessly integrated features.
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