Manual vs Software CSRD Reporting: Complete Comparison

Preparing a sustainability report under the Corporate Sustainability Reporting Directive (CSRD) or the Voluntary Sustainability Reporting Standard for SMEs (VSME) requires collecting data, verifying metrics, and producing a consistent annual disclosure.

For small and growing businesses (SMEs), the biggest question is not whether to comply — but how to report efficiently. Should you manage it manually with spreadsheets, or use software that automates data collection, processing, and reporting?

This article compares both options, highlights the main reporting tools available in Europe, and shows how automation platforms like CSRD Pro help SMEs simplify the process.

1. The Challenge: Time, Data, and Complexity

Under CSRD and VSME, small and growing businesses (SMEs) must gather information across:

• Energy and emissions (Scope 1 and 2, optionally Scope 3) - see what counts as Scope 1 vs Scope 2
• Workforce and governance
• Policies and sustainability practices
• Waste, water, and circular economy measures

For a complete overview of what you need to report, check our CSRD requirements checklist.

Doing this manually means searching invoices, scanning utility bills, and reconciling spreadsheets every year. Software tools, by contrast, help structure and process these data sources automatically — turning invoices and energy statements into verifiable metrics with audit-ready documentation.

2. Manual CSRD Reporting

🧾 How It Works

Manual reporting usually involves:

• Collecting data from energy bills, supplier invoices, and payroll records. Learn how to report fuel receipts and invoices.
• Entering numbers into Excel and applying emission factors manually.
• Drafting narrative disclosures based on ESRS or VSME templates.
• Repeating the process annually with limited continuity.

💡 Benefits

• Full control over every disclosure.
• No software fees or integrations needed.
• Ideal for micro-businesses (under 10 employees).

⚠️ Drawbacks

Manual CSRD reporting may work once, but it becomes unsustainable over multiple reporting cycles.

3. Software-Based Reporting: The Smarter Alternative

⚙️ How It Works

Sustainability reporting software digitises key steps:

1. Data capture – Extracts figures from PDFs, scanned invoices, and utility bills.
2. Processing – Applies verified emission factors and unit conversions.
3. Validation – Flags inconsistencies or missing data.
4. Report generation – Creates structured disclosures aligned with VSME or ESRS requirements.

Unlike full enterprise platforms that require complex system integrations, CSRD Pro is designed for small and growing businesses (SMEs). It automatically extracts data from uploaded documents — such as electricity bills, fuel receipts, and supplier invoices — and converts them into CSRD-ready tables.

🧰 Key Competitors in the Market

There are several EU-focused CSRD and ESG tools available:

While other platforms focus on enterprise-scale data management, CSRD Pro keeps things simple for small and growing businesses (SMEs): ✅ Upload your bills and invoices ✅ Let the system calculate your energy and emissions metrics ✅ Export a ready-to-use VSME or ESRS-aligned report

4. Cost and Time Comparison

Automation pays off as soon as your first reporting cycle is complete. Instead of repeating manual work, the system reuses verified data for the next report.

5. Compliance and Future Readiness

The CSRD Directive (EU 2022/2464) requires sustainability data to be comparable, verifiable, and digitally structured. Software-based tools ensure compliance by:

• Generating consistent disclosure tables (energy, emissions, workforce, etc.).
• Providing version control and digital audit trails.
• Aligning metrics directly with VSME B1–B11 and C1–C9 modules. Not sure which module you need? See our guide on VSME Basic vs Comprehensive modules.

Manual spreadsheets, in contrast, offer little traceability and make external assurance more expensive.

6. When to Switch from Manual to Software

The more invoices, sites, and energy sources your business manages, the greater the benefit of automation. Also consider whether to manage CSRD reporting in-house vs hiring consultants based on your team’s capacity.

7. Example: From Paper to Platform

A German packaging business that previously spent 60 hours compiling data manually switched to CSRD Pro for the 2025 cycle. By uploading PDFs of monthly energy and fuel invoices, the tool:

• Extracted kWh and CO₂e data automatically
• Flagged missing months
• Calculated Scope 1 and 2 emissions
• Generated a formatted VSME Basic Module report (B3–B11)

Result: Time reduced by 75% and improved data accuracy for assurance.

8. Summary: Why Automation Wins

While other tools focus on enterprise ESG, CSRD Pro was designed for small and growing businesses (SMEs) — providing an affordable, lightweight way to automate the most painful part of CSRD: data capture and preparation.

Key Terms

• CSRD – Corporate Sustainability Reporting Directive (EU 2022/2464).
• VSME – Voluntary Sustainability Reporting Standard for non-listed SMEs (EFRAG, 2024).
• Basic Module – Minimum required sustainability disclosures (B1–B11).
• Comprehensive Module – Optional extended disclosures (C1–C9).
• Scope 1 and 2 emissions – Direct and indirect emissions from owned assets and purchased energy.
• Automation – Use of software to extract, process, and structure sustainability data.
• Turnover – Total annual business income before expenses.

Before deciding between manual or software-based reporting, it helps to understand exactly what data you need to collect. Use our checklist generator to create a customised data collection checklist tailored to your company:

This will help you see the full scope of data collection required, making it easier to evaluate whether manual or automated tools are the right fit for your business.