Too many companies rely on spreadsheets for determining certain business rules or pay policies. Often it’s because the time or payroll vendors they have can’t automate these unique needs for them. But spreadsheets are a greater liability than most businesses realize. If your company is still using spreadsheets to calculate payroll, you’re putting yourself at risk of lawsuits, lost revenue and impeded business growth.
Here are the five biggest reasons you need to stop using spreadsheets for payroll.
Spreadsheets pose a real security risk for your most confidential data. Because administrative staff and managers (rather than programmers) are responsible for creating and adjusting the spreadsheet macros, the reality is that employee data is often vulnerable to hacking.
An integration system like Time Bank is developed by programmers and industry experts who understand security issues. It can provide the security your company requires for your employee data.
Data Corruption & Error
Spreadsheets are also prone to data corruption and error. A single incorrect entry in a formula, or the wrong change to a macro, can make a mess of your entire spreadsheet. And it could take hours to track the problem to the root.
On the other hand, automated system integration automatically enters the data correctly and can reliably apply complex business rules without the risk of human error.
Manually entering data, resolving errors and double-checking data accuracy is tremendously burdensome. In fact, 58% of organizations say they spend too much time on manual payroll transactions. On average, manual payroll processing takes 7 minutes per employee each pay period. For a company of 150 employees paid bimonthly, that’s 35 hours per month!
A data integration solution like Time Bank can automatically run payroll processing as a scheduled event, freeing up your payroll personnel for more valuable activities.
Spreadsheets can run macros, but it’s flexibility is extremely limited. When your business rules are updated or laws change, the spreadsheet must be reconfigured. There is no way to automate the updates or track the changes. If you miss an update, your entire payroll will be inaccurate, putting you at risk of litigation and noncompliance with FLSA.
But Time Bank can systematically apply changes to laws or business rules without manual adjustments, alleviating the risk of inaccurate payroll. When changes are needed, IDI’s support staff can work with you on the modifications you want to make in a structured, documented and thoroughly tested manner. And integration systems can be easily updated whenever connected systems receive version updates–so compatibility is always guaranteed.
As your business grows, spreadsheets become more and more unwieldy. More employees mean larger spreadsheets and more calculations, more room for error and more difficulty tracking down the incorrect entries. As business rules become more complex, macros become more difficult to manage successfully. The result is a convoluted system that requires more and more time for processing, draining more resources as your business is trying to expand.
Time Bank can easily scale with your business for processing 10, 100 or 10,000+ employees. Robust logic ensures that complex rules are correctly applied every time and new rules can be incorporated with a single update to the system.
Make the Switch from Spreadsheets
You don’t have to rely on undependable spreadsheets for managing your employee data. Time Bank can provide the robustness, security and simplicity your business needs to continue growing. Contact us today to find out how we can help!
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