From Manual Spreadsheets to HRIS and Payroll Software: 9 Reasons to Make the Change

Photo of author
Written by nikki

Below are the reasons why enrolling in a cloud-based HRIS and payroll software can benefit your company.

9 Reasons to Switch From a Manual to a Cloud HR & Payroll
9 Reasons to Switch From a Manual to a Cloud HR & Payroll

An HR specialist’s work can be extremely tedious, especially without the help of technology. Imagine poring over numerous time cards, record books, and ledgers before payday so you can run payroll.

On top of that, you need to manually compute 100 employees’ salaries, deductions, contributions, and other compensations. More importantly, you need to do it as accurately as possible, lest you earn their ire.

HR with software

With the entrance of spreadsheets, HRs did not have to manually compute anymore. However, using spreadsheets alone cannot remedy the concerns with other HR processes, especially managing employee data. With HR software, the work delegated to HR becomes even lighter.

Human Resource Information System (HRIS) and payroll software are a good fit for this situation. HRIS is an HR software that includes HR management, payroll system, and attendance. Below, we explain the benefits of shifting from manually running payroll and HR matters to using HRIS and payroll software. But before that, let us first define payroll software and HRIS.

Check out eezi’s HR and payroll software with free trial options.

What is payroll software?

Payroll software is software that can manage the payroll process of each employee in a business that can run both online and offline. The payroll process includes computing the gross pay, calculating the payroll taxes, other deductions, and mandatory contributions, determining net pay, then releasing employee compensation. Tax deductions are essential to the payroll process as tax laws mandate them.

For this article, the terms “payroll software,” “payroll system,” “payroll system software,” “payroll management system,” and “system” will be used interchangeably.

How does payroll software help the business?

Payroll software can perform all steps of the payroll process. It only takes the proper configuration and formulas to comply with tax laws. Besides minimizing the window for human error, the utilization of payroll software gives the human resources management team more time to focus on tasks that lead to better decision-making for the business.

What is an HRIS?

What is HRIS
The benefits of HRIS and payroll software

As mentioned before, HRIS is an HR software that can handle the various tasks delegated to the business’s human resources department. This includes payroll management, human resources management, employee attendance tracking, and even filing taxes. Essentially, an HRIS is a collection of different modules and features that cater to the human resources department’s needs.

What are the components of an HRIS, and what do they do?

Payroll management comes in the form of the payroll system mentioned above. The payroll system is integrated into HRIS and is in charge of payroll processing. Payroll systems not only manage employee compensation but also ensure tax compliance.

Human resource management

Human resources management includes collecting, recording, and filing employee information. Employee information usually consists of basic information like full name, birthdate, address, and other contact information. It also includes the hire date, the compensation and benefits, and additional pertinent work information.

Attendance monitoring

To manage employees effectively, HRIS also conducts attendance monitoring of the enrolled employees. It includes tracking each employee’s time in and time out and then deriving the employee hours from the gathered data. Employee hours are an essential part of payroll processing. Attendance monitoring also includes absence management, which tracks the filed and approved leaves and time-offs.

Tax filing

And finally, HRIS also helps in tax filing. HRIS can incorporate the tax forms necessary for filing the taxes of the business and the employees. Filing taxes is an integral part of the duties of the HR department as it is the responsibility of all business owners and salaried employees to pay taxes, and the business must remit the tax withholdings from the employees. HRIS can also provide reminders of approaching deadlines to file taxes to avoid getting penalties.

9 Reasons to Use an HRIS and Payroll System Software

Advantages of HRIS and payroll system software
Advantages of HRIS and payroll system software

There are many reasons to convert from doing payroll and HR duties manually to using HRIS and payroll software. This article has consolidated them into nine (9) main points.


Many small businesses are owned and run solely by their owners. These small business owners usually handle all business matters, including HR duties, and are typically done manually. The manual method is susceptible to human errors, especially with computations. These errors cause problems for the business, both in budgeting and employee relations. And these problems increase as the business grows.

An easy way to avoid these financial and payroll errors is to switch to HRIS and payroll software. The correct formulas and configuration eliminate the need for manual computations and, in turn, eradicate mistakes. Using HRIS as an in-house payroll system is also cheaper than hiring payroll services from another company.


Many businesses are run aground due to their failure to pay taxes on time or at all. Even well-established companies and operations close down when the BIR and COA discover their negligence in paying taxes and file cases for tax evasion.

Using HRIS and payroll software as the in-house payroll system helps ensure the business complies with tax laws. HRIS can provide the necessary tax forms, proper computations for tax withholdings from the employees, and even customize notifications of deadlines so that the HR department can file taxes on time. HRIS and payroll software helps the business stay on the law’s good side and avoid legal infractions or penalties.


Small businesses still employing the manual method of doing HR and payroll processes may be doing fine despite some human errors, given that the scope of the operation doesn’t grow. But what if the business demands expansion? Just imagine adding, say, 25 new employees to your business as you open a new branch. How would your HR duties fare?

With HRIS and payroll software, it’s easy to avoid such dilemmas. Adding a new location that may come with different regulations is not a problem for the HRIS and payroll software. Adding a bulk of new employees to the system is also of no consequence. The software can still perform its functions regardless of 10 or 50 employees.


One of the significant expenses of a business is in paying employees. Therefore there must be no space for mistakes in this area, and the management can see where the money goes. Recorded documentation of transactions is also kept safely for reference or later perusal.

HRIS can store pertinent records of transactions conducted within its bounds. And these records can be recalled and pulled up by anyone with authority. Documents containing essential employee information are also recorded within the system and are trusted to be the only accurate source of information about business employees.

Security and Privacy

Documents and information handled by the hr department may be sensitive, confidential, or personal, and they will not do well to have them accessed by just anyone in the company. Using logbooks and spreadsheets does not guarantee much safety from unwanted and unauthorized attention.

HRIS and payroll software guarantee that only authorized personnel can access these confidential files. The government now holds the privacy of individuals in high regard, and there are laws in place to protect said privacy. Using the system guarantees that private information remains private.


A business owner using the manual or spreadsheet method needs to constantly bring their record books and spreadsheets in case of sudden decision-making scenarios or HR work that needs completing immediately. If your business has accumulated many records, always carrying your spreadsheets and documents will be a big hassle.

As long as online or cloud-based HRIS and payroll software are utilized, accessing your needed records becomes faster and more convenient. HR management also becomes more accessible as the HR team can remotely.

You only need a computer or even an Android or IOS phone connected to the internet to access the system. HRIS and payroll software also serve as employee self-service portals, allowing employees to access their accounts and log in remotely, making for a better employee experience.

Better Decision-Making

One of the most crucial steps toward any business’s success is having steady and sound decision-making. Good decision-making stems from having a well-informed and knowledgeable decision-making body. Having comprehensive and accurate reports and records is vital to make this happen.

When you utilize the HRIS and payroll software solution, comprehensive and accurate reports and records are readily accessible. The system is customizable to produce the reports you need and want that will reflect the necessary trends in your chosen form of a graph, a chart, or a table. Records are retrievable from the system’s servers at any time.

These readily accessible reports and records allow the decision-making body to see data trends, make the best decisions, and develop the most appropriate HR strategy, focusing on areas that most need it.

Less Paperwork

When you run payroll manually and other HR processes, you can expect the amount of paper to pile up over time. Eventually, all those documents will cost you space and organization. Not to mention, paper-based documents are susceptible to damage. Anything from flood to fire to ants and worms can destroy these vital documents.

Using HRIS and payroll software solutions avoids these problems. HRIS and payroll system is usually a cloud-based solution with a centralized server, which lessens, if not completely removes, the need for actual manual writing. It also prevents the documents from getting damaged, taking up too much physical space, and getting messy or disorganized.

More Time

Most parts of the HR department’s role in a business take up quite a long time, especially running payroll. Using the manual or spreadsheet method to accomplish even the essential payroll functions may take half the payroll period, especially for many employees.

Taking these tedious and time-consuming tasks away from the HR team boosts their productivity. It lets them be more efficient as they now have more time to dedicate to other assignments that will take the business further into success. Employing the services of HRIS and payroll software systems does precisely this. It performs the necessary payroll and HR processes so the HR team doesn’t have to.


What do you consider in choosing which HRIS and payroll software to use?

Many HRIS and payroll solutions are now available for any business to employ. They come with a whole range of features and a range of prices. But the question is, “which one do you pick?”. Here are some factors you should look into to get the most suited HRIS and best payroll software for your business.

Criteria for choosing HRIS
Criteria for choosing HRIS

The needs of your business.

One of the most important factors to consider in choosing your HRIS and payroll software solution is whether it provides the necessary functions and features to satisfy your business’s needs. It may be the most attractively designed or popular system, but if it doesn’t answer all your business needs, then it probably isn’t worth it.

The cost of the product.

When choosing your HRIS and payroll software, being stingy and going for the cheapest one out there might not be the best idea every time, nor will going for the most expensive ones. It might just cost a little more to have the system that is best suited for your business. But make sure that purchasing your system doesn’t bore a hole through your budget.

Online or Offline Integration.

You also have to consider whether you want your system accessible anywhere you go or just in your office or business location. If you want it accessible anytime, anywhere, you should use an online or cloud-based system. For the online integration, you might be asked to pay additional for domain hosting, and you won’t be able to access your system if you are not connected to the internet.

If you opt for the offline or on-premises HRIS and payroll software, your can only access your system in your office with the devices connected to the server. Unlike cloud-based systems, offline systems have physical servers in your office that could still be susceptible to damage.

Ease of Use and Learnability.

After finding a system that suits your business needs, is just right for your budget, and offers the type of integration you want, is that enough? For some, maybe. But a system that is easy to learn and use should also be considered. A system that is hard to use and understand will not be helpful and will only cause you frustration.

Support Services.

Another factor to consider when purchasing HRIS and payroll software is the kind of support service the payroll provider provides along with the system. This is important because you might encounter problems with the system that only the provider might solve. Or you may want something modified or added to your system.

Setting up your HRIS and payroll software
Setting up your HRIS and payroll software

How do you set up HRIS and payroll software?

To have HRIS and payroll solutions, you may get them from companies offering IT and business solutions or acquire them from a payroll service provider. Once you have your chosen system, you must set it up correctly so it can perform its functions accurately.

Step 1: Establish primary accounts

You should ensure that all the needed (primary) accounts are established, then decide on the level of access each account in the system gets. This step guarantees the privacy and security of confidential information within the system. The level of access given to each account may also alter the interface with which each account owner gets to see and interact.

Step 2: Incorporate transactions and processes

Ensure that all necessary transactions and processes are incorporated within the system. You should ensure that all critical steps of each process are accounted for and that all required data or information are acquired in each step.

Step 3: Finalize forms

Gather and finalize the forms the system will incorporate. You must ensure that all forms and fields are complete, which are required and optional. The forms must comply with the legal parameters and also regulations of the company.

Step 4: Consolidate employee data

Collect all necessary employee data that needs to go into the system, then create the employee accounts. You have to ensure that the data are complete and accurate because the system will be the only source of information about the employees.

Step 5: Double-check formulas for computation

Ensure that you have the correct formulas for the computations of gross pay, net pay, deductions, contributions, tax withholdings, and other monetary matters. This step is crucial in setting up the HRIS and payroll system, as any mistakes in computing may break the company.

Step 6: Set pay periods and release dates

Set the pay period and schedule the pay release dates. This step ensures that the employees get their hard-earned salaries on time, maintains their satisfaction, and gives them a better experience.

Step 7: Conduct test runs

Lastly, you have to conduct at least several test runs to ensure that the system is functioning as it should and that all possible scenarios that may arise within the use of the system have been tested. This step also guarantees that any problems are mitigated before using the HRIS and payroll software for the company.

That’s it! After the last step, you now have a well-set-up HRIS and payroll software that is certified to carry out the work of the HR team flawlessly. Or at least as flawless as you have set it up to be.

Make your HRIS and payroll transition eezi

Switch to eezi and enjoy the benefits of a compliant, configurable, user-friendly, and straightforward cloud-based HRIS and payroll solution.

Let’s walk you through our HR and payroll system

Book a demo with us or start your free trial.
No commitments and no credit card required.


Makati City, PH

9th Floor, AIA Tower 8767 Paseo de Roxas, Salcedo Village, Bel-Air 1226, Makati City, Philippines

(6328) 284-8789