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Real Winner: Manual or Automated Payroll Management Software?

Should I deploy payroll management software? Should I outsource the payroll management work? Will I really be able to save money and time?

Will it be complex to use? Is it the right time or I should wait? Will my data be safe and secure? There are many questions like so that can or might be springing in your head and that’s okay. As an entrepreneur, it is viable for you to think about the money as more wisely you invest what you have, the better. 

But, being a miser and trying to spend less even when it can give you a great return is not a good act. If you are one of the owners or payroll managers who are always confused between manual payroll processing or a payroll management software, this blog is for you. Herein, we do an unbiased comparison of both to let you decide the real winner. Let us begin!





The entire effort is put by the employees working in the payroll team and thus it consumes a lot of time. 

There are software packages that can automate the payroll process with zero or little manual intervention. 


The biggest hurdle is that of coordination and forgetting or skipping deadlines and not staying compliant. 

The employees update their attendance and apply for leaves which reduces the payroll personnel burden and staying compliant becomes easy with fewer check levels. 


The data is either in excel sheet or files and papers which makes it prone to theft or getting lost easily. 

The data is saved on-cloud and has a backup in most of the cases which means that the data is safe and the security passcodes are there to further keep the company data secure. 


Accuracy is impacted mostly because of human errors. When the work is done manually, the chances of errors are high. 

When a company is using software, the chances of employees not getting accurate data are very rare and less. It is so as the manual intervention is quite low.  


The cost of manual work in the startup is low. But, as the organisation grows, the cost surpasses the cost incurred while using automated software. The need for human resource to manage payroll and the invested man hours will increase. 

The cost of automated software for a startup is comparatively high. However, when the employees increase it doesn’t increase the personnel requirement. 


The skills for managing payroll are highly required. The payroll personnel should understand the value of staying updated and a person with more experience is preferred. 

The intricate part of payroll includes statutory requirement and compliance. Payroll management software can be operated by a newbie as well. 


A company can customise the process as and how it wants. However, the workload can increase or the customisation can even go wrong. 

When it comes to automation and using payroll management software, the customizations are limited and practical. 

So, now that you can see the 7 major differencesArticle Submission, it is clear that the HRMS software India has are a go-ahead instead of continuing to waste man-hours and process payroll manually. 

Source: Free Articles from


Saajan Sharma is a Digital Marketing Strategist with several years of experience in the industry. He likes to read and write actively on upcoming HR trends and how HR is reshaping the business landscape. He likes to help businesses stay informed and up to date with established and emerging technologies like HR Software, Payroll Software, SAP, Recruitment and many other technologies like IoT, etc.

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