Often times, small businesses opt to use Excel for payroll; however, it complicates matters rather than simplifying them. If you are a small business that has employees, it is almost certain, they did not join you expecting to make impressive salaries from the beginning. Granted, everyone ultimately works to get paid, but most employees seek employment opportunities that they will enjoy while working for that paycheck.
Yet, if something goes awry and payroll can’t be processed, or is miscalculated, employees can quickly become upset and you may even risk losing them. People want to get paid for work performed on the job, just as you expect payment for your products and services in business.
Whether you’re a business owner taking care of all the finances of your business or an accountant, it is no mistaking the amount of time and detail required for the proper processing of payroll. From calculating hours, verifying pay rates, figuring out taxes, and all the reports and payments associated; it is no small chore, especially if your business is growing rapidly.
If you’re using Excel to manage your payroll, there are many other options that will reduce the hours and hassle of managing payroll. Excel is a great tool for spreadsheets and charts and even useful in complex calculations, but in regards to payroll, it isn’t the ideal solution. Why? Payroll involves many factors and rates are often changing. As your business expands, maintaining payroll in Excel will require more of your time and a lot more manual entry versus using software that is designed for payroll processing. Let’s review some of the downsides of using Excel for payroll.
Excel is useful in many ways; however, it is not ideal for payroll. The lack of manageability will hinder future growth for your business. And, if you ever need to lure investors to help you expand, those individuals will expect detailed information and past history.
Also, depending on the area you’re in, tax laws may change. For example, areas like Singapore have certain requirements for payroll processes and maintenance of history. In the interest of your business, invest in accounting software that will help streamline the payroll processes. This will save you time and money in the long run.
Please fill in this form and our team will get back to you ASAP through your preferred communication channel.