Difference Between Manual and Computerized Payroll System

Manual Payroll:
Manual payroll means that you, or another employee within your company, calculate the payroll each pay period entirely on paper. You should compute all gaining heads and statutory applicable deductions with no start-up costs.

Computerized Payroll System: The Computerized Payroll framework, many organizations offer PC programming that will help you in preparing payroll. You will need to input information for each employee when he is hired, but after that, the software will calculate payroll taxes and other deductions automatically.

The main difference between manual payroll and Computerized Payroll System:-

1). Speed: The main difference between manual and computerized systems is speed. Accounting software processes data and makes reports much quicker than manual frameworks. Calculations are done automatically in software programs, minimizing errors and increasing efficiency.

2). Cost: Second difference between manual and computerized systems is cost. Manual accounting with paper and pencil is much cheaper than a computerized system, which requires a machine and software. Other expenses associated with accounting software include training and program maintenance. Expenses can add up fast with costs for printers, paper, ink, and other supplies.

3). Backup: The third difference between manual and computerized systems the simplicity of backup of a computerized system. All transactions can be saved and backed up, in case of fire or another mishap. You cannot do this with paper records unless you make copies of all pages–a long and inefficient process.

4). Accuracy: More Accuracy is there in case of the machine and lack of errors will be there. But in the case of manual payroll, chances of errors will be there.

5). Less Manpower Required: To calculate the same payroll in the same amount of time we need more manpower in case of manual as compared to computerized.

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