Why Should We Switch From Traditional Excel & Manual Data Entry To Modern Cloud HR Software For Payroll In 2021?

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Digitalization in 2021 is becoming very common. Adjusting to these new modern changes can be challenging; therefore, HR software can help ease our employee master data and payroll difficulties. Moreover, software usage has become the new mode as it looks more professional in today’s time and adds value to businesses. It mainly focuses on improving businesses, generating more revenue, and transforming businesses into a new digital environmental format.  Allied Market Research stated that the global cloud-based payroll software market was valued at $6,738 million in 2016 and is calculated to reach $10,336 million by 2023, increasing at a CAGR of 6.5% from 2017 to 2023.

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The key to the success of any business is keeping things organized, manageable, and secure. Small businesses often go for excel and manual data entry as they are inexpensive, but it can be hard to manage as the business increases. JPMorgan Chase lost more than $6 billion in the “London Whale” incident due to Excel spreadsheet errors.
Another research by The Wall Street Journal reported 88% of the spreadsheets to contain errors. There are numerous disadvantages of using traditional excel and manual data entry.

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• Consolidation: The payments must be made every month for employees; therefore, managing different excel sheets for all the months is challenging. The excel sheets are required to be integrated and unified.

• Human Error: It is tough to keep in mind the new changes in every employee’s account, such as their loans, taxes, deductions, incentives & commissions. Moreover, wrong calculation and inaccuracy in data may cause penalties and financial losses which SMEs cannot afford. A simple error cost a big Canadian power generator company a whopping USD 24M. Therefore, excel sheets are subject to human error.

• Lack of Security: There are high chances that an excel sheet can get corrupted or hacked. The spreadsheets are at risk of financial data leakages of the company. According to Forbes, payroll fraud happens in 27% of all businesses and occurs nearly twice as often (14.2%) in small organizations with less than 100 employees.

• Time-consuming: Microsoft Excel is not easy to handle and needs the skills of a person to operate it, with calculating and tracking of taxes, loans, and commissions which takes more amount of time and energy. Moreover, the collaboration and compiling take time too.

• Generation of Payslips: As employers cannot share data and other costs with employees, it becomes difficult to generate manual payslips for each employee as the business expands.

• Employee dissatisfaction: Errors in managing payroll on excel or manually can sometimes cause delayed salaries, making the employees unhappy. It is crucial to meet the needs and wants of the employees as businesses have to pay according to their value in the company, and keeping in mind their skills and talents, the company cannot afford to lose their employees.

Excel sheets can be practical but when used for proper purposes. It is not suitable for payroll management. Excel sheets are the traditional system that has not a great value in 2021, the era of digitalization. Every company wants the modern way of delivering their services and products to their customers, enabling them to switch to the digital system for greater productivity and meet the increasing demands of their employees and customers. The cloud-based HR software helps to track the correct number of salaries to be given to the employees. HR software allows employers to check their employees paid work hours, holidays, loans, taxes and incentives. It is effective for SMEs as salary transactions can be done remotely from anywhere, especially during Covid-19. There are several benefits of HR software for payroll.

• Increased security: The data is backed up, and OTP can be applied to keep the data secure and protected. All the information is stored and encrypted. There are almost zero chances of payroll frauds and leakage of confidential information of the company.

• Saves time and energy: The employee’s data has to be just once, and it is speedy to use, which saves time compared to the manual excel sheets. The process of information is recorded in seconds automatically through the software.

• Accurate: The chances of errors are decreased with correct & automatic calculations of taxes, salaries, loans numbers and reports.

• User-friendly: Anybody can use the software; it doesn’t require special skills & training as compare to excel sheets and other similar software. For usage, it is convenient and mobile.

• Transparent: The software allows the employees to edit/update their information, saving time. Employees can view their history of salaries received, payslips and their dues very quickly through wed app or mobile. Also, the software allows greater flexibility to employees for self-service.

• Increases employee satisfaction: Employees tend to be happy when they receive their salary on time with correct data, which leads to better performance management and improves the recruitment process. Hence company get benefitted from this, which further increase its profits.

In conclusion, most companies in 2021 aim to be called ‘modern and advanced technology users, using the latest know-how. The Companies also want to showcase themselves as efficient as possible here. The traditional system of using manual excel sheets has become outdated in today’s time, so companies need to switch to high-tech software to improve accuracy and efficiency. Employers and employees both can access cloud-based HR software from anywhere in the world using their login and passwords to use their relevant data according to the rights allotted to them. The recent pandemic is the best example of this, which shows the significant impact on a company’s performance using the HR based software, which makes their life hassle-free and stress-free.

UBIQHR provides an upgraded HR software that allows employers to keep their payroll management in check. The data is encrypted and stored in highly secured and reliable data centre. There are zero setup fees, and you can access it anywhere at any time. The software can handle multi-currency salary payroll, and employees can view/download their payslips without manually requesting from HR. UBIQHR app allows connecting the employees of the company globally. It has excellent monitoring, backup and disaster recovery procedures. UBIQHR is a certified cloud-based software for SMEs that redefines the digital world’s work culture in 2021.

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