Why Using Payroll Software Is More Effective Than Spreadsheets in India?
Posted on February 21, 2019
In today’s cut-throat business world, it’s all about efficiency; especially when it comes to processing payroll. Automated payroll management through payroll software in India is far better than using spreadsheets. Not just as a usage model or because of its functionalities. Payroll software not only saves times and manual effort, but it ensures you’re compliant with labor laws.
When it comes to payroll processing, here are a few reasons why payroll software is more effective than spreadsheets:
Prevents Human Mistakes
This is the elephant in the room! Generic, manual tools like spreadsheets enable inadvertent errors into payroll processing. These mistakes arise from simple data entry errors, formula errors, copy-paste mistakes, etc.
By introducing automation into payroll calculations, you reduce the scope of error by a large margin.
Handles Complex Calculations
Figuring out statutory deductions like PT, PF, TDS and ESI are complex. And as your company grows, there will be changes in these criteria, not to mention when changes occur in labor laws. Not staying updated with these changes can land your company into much legal turmoil. Besides, using a generic program like Spreadsheets to compute deductions is virtually impossible.
Payroll software handles these changes quite easily. All types of calculations are handled seamlessly, giving you an accurate output every time!
Smooth Payroll Workflow
The task of payroll processing is all about creating a smooth workflow. There are a series of steps in each succession. If mistakes occur, a chink is created in this workflow which can not only affect calculations but also in the timely generation of pay slips. One cannot manage a payroll workflow with Excel.
With payroll software, troubleshooting for errors is very easy, enabling you to restore your workflow!
Generating and Distributing Payslips
If you’re using Excel, you’re probably manually generating all your payslips. While this is permissible with a staff roster of two to three individuals, this is virtually impossible and futile if your company is growing.
With payroll software, you no longer have to design and print payslips. You can choose from pre-built templates or even format your own. With a template, you don’t run the risk of leaving out a particular field. It also gives you the freedom of custom designing payslips to suit your company’s needs. In addition, you can easily mail out payslips to respective employees via email.
Spreadsheets does not offer report generation capabilities; so companies still relying on this old system have to manually create reports and charts for presentations to senior management. These charts and reports are often created to show bonus calculations, SIF files, CTC-wise employee breakup, etc.
Payroll software easily enables data collation into any report or chart format. You can automate report generation with our payroll software for each month, without regular manual intervention.
Need more reasons to consider payroll software? Contact TimeLabs today!