A lot of times those looking to create paystubs debate about whether they should use Pay Stub Generators or Accounting & Payroll Software such as Excel. Since both methods have their pros and cons, we decided to debate both in this helpful post.
Why would one use Excel for creating pay stubs?
As a business, chances are you pay a great detail of attention to your numbers. It’s important that everything adds up correctly because improper calculations can lead to major problems down the road. If you a smart, you know this is absolutely tree! From proper accounting to financial statistics, your numbers have to be spot on! When issuing pays stubs to your employees, that same sort of rules still apply because pay stubs that is not properly calculated may cause problems for both you and your staff. This is why making sure you create stubs that are properly calculated and configured precisely are key.
For years, many businesses who did in-house payroll services for it’s staff, would use spreadsheet software like Excel. This software allowed the company to enter in key data about each employee including their hours, pay rate and exceptions, and the software would be able to create custom pay stubs using the data from the spreadsheet. Although the software was very convent, a lot of the data such as tax rates had to be entered in by hand, were not always updated, and the checks would often come back with numbers that did not properly add up.
Why does an online pay stub generator provide a better solution than Excel?
Although there are many advantages to making pays stubs online, the advances over Excel are obvious.
Excel costs more than pay stub generators
First is the cost. Currently, Microsoft Excel costs a consumer or business around $80. Compare that to online pay stub makers that range anywhere in price from $5 to $12, for some of the higher quality options. Plus, a pay stub made online is a one time purchase compared to Excel software which may need to be renewed every year which is a continued added expense for your business.
Excel does not automatically update itself with current tax rates
With Excel, a member of your company must enter a formula to calculate for current taxes and withholding figures. But what if that data is wrong because it is out of date? As states update tax rates, it is becomes and more common that businesses that use Excel software to print pay stubs, are handing out miscalculated pay stubs to it’s employees. Having data that does not add up, can lead to major headaches for both you and your staff. With online generators, the configurations are instantly updated by the website, which means the numbers are precise and accurate.
When it comes to choose between making a pay stub online using a high quality generator vs. paying a lot of money for Excel and downloading a template, the answer is obvious. An online pay stub is the better choice! If you are interested in trying out this product for yourself, the internet offers many pay stubs for business owners conveniently over the web. Quickly enter in a few pieces of data about each employee and instantly make stubs.