Excel vs Digital Software for Time Recording: Which to Choose?

Excel vs Digital Software: The Great Time Tracking Debate

Let’s be honest: Excel is probably the most used tool in the business world. From budgets to inventories, to that mysterious file that’s been around for 8 years without anyone knowing who created it. And for a long time, it’s also been the favourite option for many SMEs to keep time records.

But with the new Royal Decree on Digital Time Recording (currently in processing), the rules will change. Excel will no longer be sufficient as the main time tracking system. And although it sounds drastic, there’s a logical explanation - and a simpler solution than you think.

In this article, we make an honest comparison between Excel and specialised digital software, so you can make the best decision for your company.

How Is Excel Used for Time Recording?

Before getting into the comparison, let’s see how most companies using Excel do it:

1. Shared template: a spreadsheet with columns for name, date, entry time, exit time, and observations.
2. Manual filling: each employee (or the manager) enters the data by hand.
3. Local or cloud storage: the file is saved on the company server, Google Drive, or OneDrive.
4. Manual reports: when someone needs a summary, they have to create formulas, filter data, and manually generate charts.

Does it work? Yes, basically. Does it comply with the new regulations? No.

Comparison: Excel vs Digital Software

Let’s go point by point, without embellishment:

Timestamp

• Excel: The time is written by the employee manually. There’s no guarantee it’s correct or when the data was actually entered.
• Digital software: The timestamp is generated automatically at the moment of clocking. It’s objective and immutable.

Verdict: Software wins by a landslide. Automatic timestamp is one of the fundamental requirements of the Royal Decree.

Modification Traceability

• Excel: Anyone with access can change a cell without leaving a trace. Even with Google Sheets version history, it’s easy to lose track of who changed what and why.
• Digital software: Every modification is recorded with date, time, user, and reason. The original record is always preserved.

Verdict: Excel has no real traceability. Digital software does. This is a legal requirement, not a preference.

Remote Access for Inspection

• Excel: If an inspector asks for the records, you have to find the file, export it, send it by email… and pray it’s up to date.
• Digital software: The inspector can access the data remotely and immediately. Everything is centralised and available in real-time.

Verdict: The new Royal Decree will require immediate remote access. With Excel, you can’t guarantee that.

Employee Clocking

• Excel: The employee has to open the file, find their row, write the time… Some forget, others do it at the end of the day “from memory”. There’s no way to verify they did it at the right time.
• Digital software: One tap on the app, one click in the browser, or passing by the kiosk. Clocking in 2 seconds with optional geolocation.

Verdict: With Excel, clocking depends on employee discipline. With software, it’s automatic and verifiable.

Break and Overtime Recording

• Excel: You can add columns, but everything is manual. Calculating overtime requires complex formulas prone to errors.
• Digital software: Breaks are recorded with a button. Overtime is calculated automatically based on the configured schedule.

Verdict: Excel can do it, but with much more effort and margin for error.

Remote Work Management

• Excel: How does your Excel know if the employee is working from home or the office? It doesn’t. You have to trust they note it correctly.
• Digital software: The system automatically differentiates between on-site and remote clocking, and can include geolocation to verify location.

Verdict: In the era of hybrid work, Excel falls short.

Reports and Statistics

• Excel: You need to create formulas, pivot tables, and charts manually. Each report is a project in itself.
• Digital software: Automatic reports by employee, department, work centre, period… with one click.

Verdict: If you like spending hours making pivot tables, Excel is your friend. If you prefer to have it ready in 5 seconds, software wins.

Cost

• Excel: “Free” (if you already have an Office licence or use Google Sheets). But the time you invest in maintaining it, reviewing it, and correcting errors has a hidden cost.
• Digital software: From 1.50 EUR per user/month. For a company of 10 employees, that’s 15 EUR/month.

Verdict: Excel seems cheaper, but when you add up the time you spend maintaining it and the risk of fines, it costs more. Much more.

Summary Table

Criterion	Excel	Digital software
Automatic timestamp	No	Yes
Traceability	Not real	Complete
Remote inspection access	Not direct	Immediate
Quick clocking	Manual	One click/tap
Breaks and overtime	Manual	Automatic
Remote work	No control	Differentiated
Reports	Manual	Automatic
Direct cost	Low	From 1.50 EUR/user
Complies with Royal Decree	No	Yes

So, Is Excel Useless?

It is useful, but not as the main system. The Royal Decree provides that digital systems can fail (server down, internet cut, technical failure), and requires companies to have an alternative manual procedure for these situations.

That’s where Excel has its place: as an emergency backup plan.

The idea is simple:

1. Main system: Digital time tracking software (what you use 99% of the time).
2. Contingency plan: Excel template or paper form for when the digital system isn’t available.
3. Regularisation: When the digital system recovers, the data from the contingency period is transferred to the digital system.

So don’t delete your Excel template. Keep it, update it, and have it handy. But don’t use it as your regular method.

With Cleverfy, for example, you can import manual records into the digital system so everything stays centralised after a contingency.

When Is the Right Time to Switch from Excel to Software?

If you’re still using Excel as your main system, the short answer is: now. But if you need more convincing, these are the clear signs that you’ve exceeded Excel’s capacity:

1. You Have More Than 5 Employees

With 2-3 people, a spreadsheet is manageable. With 5 or more, manual management becomes a constant headache: forgotten entries, errors, duplicates, outdated versions…

2. You Have Remote Workers

If part of your team works from home, you need a system that differentiates between on-site and remote clocking. Excel can’t do that reliably.

3. You Spend More Than 30 Minutes a Month on Time Tracking

If it’s you (or someone on your team) who reviews, corrects, and generates reports from Excel, that time has a cost. Software automates all of that.

4. You’ve Had (or Fear) an Inspection

If the Labour Inspectorate knocks on your door and your recording system is an Excel shared on Google Drive, you’re going to have a problem. Digital software gives you peace of mind that everything is in order and accessible.

5. The Law Requires It

This is the definitive argument: the new Royal Decree will require digital recording. It’s not a recommendation, it will be a legal obligation. And fines for non-compliance can reach 7,500 EUR for serious violations under current LISOS.

How to Make the Transition from Excel to Digital Software

If you’ve decided to make the leap, these are the steps:

1. Choose Your Software

Look for a tool that’s easy to set up, economical, and meets all legal requirements. Cleverfy is designed specifically for SMEs: setup in 10 minutes, from 1.50 EUR/user/month, and no lock-in contract.

2. Set Up Your Company

Register your company, add work centres, and configure schedules. With Cleverfy, you can have it ready in less than 10 minutes.

3. Import Historical Data (If Necessary)

If you have time records in Excel that you want to keep, many software options allow importing them. This way you keep the history centralised.

4. Invite Your Employees

Send invitations by email. Each employee activates their account and can start clocking in immediately.

5. Communicate the Change

Explain to your team that you’re going to use a new system, how it works, and from when. An email + a quick demo is enough.

6. Keep Your Excel Template as a Backup

Don’t throw it away. Update it with the correct fields (name, date, entry time, exit time, breaks, observations) and leave it accessible for emergencies.

The Real Cost of Not Switching

Many business owners think Excel is “free” and that software is an unnecessary expense. But let’s do the maths:

Cost of Excel (hidden):

• Time spent on manual management: ~2-4 hours/month = 50-100 EUR/month in labour cost
• Risk of fine from inspection: 751-7,500 EUR (serious violation)
• Payroll errors from incorrect data: variable
• Stress and arguments with employees over dubious records: priceless

Cost of digital software:

• Cleverfy: from 1.50 EUR/user/month = 15 EUR/month for 10 employees
• Or one-time payment (Lifetime Deal): 699 EUR for up to 10 employees (no fees ever again)

The equation is simple: you pay 15 EUR a month for legal peace of mind, automation, and time savings, or you risk thousands of euros in penalties and hours of manual work.

Want to see it in action? Book a free Cleverfy demo and we’ll show you how it works in 15 minutes.

Frequently Asked Questions (FAQ)

Is it legal to use Excel for time recording in 2026?

As the main system, no. The new Royal Decree will require a digital record with automatic timestamp, modification traceability, and remote access, requirements that Excel doesn’t meet. However, you can use it as a manual contingency plan for when the digital system fails.

What’s the difference between Excel and Google Sheets for time tracking?

In legal terms, none relevant. Both are spreadsheets without automatic timestamp or real traceability. Google Sheets has version history, but it doesn’t meet the immutability standards required by law.

Can I use Excel while implementing digital software?

Yes, as a temporary measure. But don’t drag it out unnecessarily. The transition to software like Cleverfy takes less than a day, so there’s no excuse to postpone it.

How much does time recording software cost?

From 1.50 EUR per user per month. Cleverfy, for example, offers monthly plans from that price and Lifetime Deals from 699 EUR.

Is it difficult to migrate from Excel to digital software?

No. Most software allows importing data from Excel and initial setup takes less than 10 minutes. Your employees just need to download the app or access from the browser.

What happens to old records I have in Excel?

You must keep them for 4 years. Ideally, import them into digital software to have everything centralised, or keep Excel files archived and accessible as a supplement.

Does Excel work as a manual contingency plan?

Yes. In fact, it’s one of the best options as an alternative system for when digital software is temporarily unavailable. Keep an updated template ready to use in case of emergency.

Conclusion: Excel Had Its Moment

Excel has been a great ally for SMEs for years. But for time recording in 2026, it’s no longer enough. The law demands more, and the consequences of non-compliance are serious.

The good news: the change is easy, fast, and cheap. Software like Cleverfy allows you to comply with the law, save time, and forget about spreadsheets. All from 1.50 EUR/user/month, with 10-minute setup and no lock-in.

Your Excel can retire peacefully - as an emergency backup, which is where it really shines.

Start free with Cleverfy ->