The use of spreadsheet applications such as Excel, Google Sheet, Open Office as a data processor or spreadsheet at this time can’t be separated from business activities. Almost all people in companies use this application for various things. Starting from simple things like recap data like sales recap, production quantity recap, attendance recap to more advanced levels such as making salary calculations. It is undeniable that calculating salaries using spreadsheet applications like Excel is very helpful because spreadsheets can be used in a flexible way by user to process any data they want to. The use of formulas provided by this application such as IF, LOOKUP, SUM, COUNT, etc. is one of the main features used by users in calculating salaries with spreadsheet applications. Although the practice of salary calculation with spreadsheet applications is still a favorite in the business world, Many companies have already used payroll software or HRIS as a solution for calculating employee salaries. Payroll software itself is a system specifically designed to make salary calculations quickly and accurately. In this sophisticated era, there are lot of outstanding payroll software on the market. They provide many products like cloud systems, on premise, payroll on the go and payroll outsourcing services. The use of a spreadsheet application to do salary calculations is indeed a cheap and flexible way for everyone. But there are several reasons why you should start leaving salary calculations using a spreadsheet. Here are 5 reasons why you should start leaving salary calculations using a spreadsheet:
1. Spreadsheets Are Vulnerable To be Cheated
Spreadsheets can be setup in such a way by using formulas, but still have lack of control over all formulas that have been set in each cell. Lowe control over all formulas makes spreadsheets vulnerable to be manipulated. Users can easily change the value of a cell by just typing it. Imagine if you have a large number of employees and with just hit some number your salary data will be easily manipulated. Imagine how much loss the company would suffer from this kind of fraudulent practice
2. Vulnerable to Human Error
When you add a new row of data have you experienced a formula that you have set is not copied as it should? Image above is an example that causes the sum function in the subtotal row not to add up perfectly. Other human errors can also occur such as incorrectly choosing cells to add or process into a formula. Without sufficient supervision, mistakes like these can easily occur. This case definitely will danger the company especially if you have already transferred the salary value.
3. Difficult to be Consolidated
If you manage payroll separately at each branch location. Consolidating payroll data from various branch locations centralized will be difficult. Especially if you consolidate those data with the copy / paste process. Some spreadsheets support external links or lookups from other spreadsheet files. However, this process sometimes does not work. When you receive a new file from each branch, your spreadsheet file does not automatically synced with the new file even though the file name is the same. All you have to do is re-do all the lookups and sync all the data again. This Re-consolidation process definitely will take you time.
4. Limitation of File Size
When the data that you process has exceeded 3000 lines, this will make your spreadsheet file even bigger. The spreadsheet application will process slower when your file exceeds 2MB. Data processing speed depends on processor specifications and RAM memory of your computer. If you process more than 1000 employees with various complicated formulas, imagine how much of your spreadsheet file will be?
5. Vulnerable to Viruses
Do you still remember the wannacry ransomware virus that had shocked the business world a while ago? Viruses that attack files such as spreadsheet files encrypt your files easily and make your important data cannot be opened again. Especially when you experienced the virus attack at the payday period. Do you still have enough strength to not cry at the end of the month? 😀
5 things above are common weaknesses that exist in spreadsheet applications. Actually there are many ways that can be done to deal with the things above. Repressive actions such as periodic checks can be done to minimize risk. Preventive actions such as protection for several cells can also be done to prevent data manipulation. But beside of these ways to deal with the above problems, it is a good idea to consider using a payroll system that uses a database system. By using an integrated payroll system you will not worry about cheating or manipulate data into the database. By using an integrated system, you don’t have to worry about your data being attacked by viruses. Processing data in large sizes and consolidated can also be done quickly. There are so many payroll application in the market which can considered as well. You can choose which product that suits with your needs. JPayroll is one of provider of payroll software and HRIS have been trusted by hundred companies in the world. With parameter based features, you can implement a payroll system for all areas of business that you run. Discuss your need with us, our expert consultant will happy to help you.