Streamlining Payroll

by Finsmart Admin

“Payroll” could mean different things to different individuals. For some, it could mean a complete list of the company’s employees. It could also be used by HR for attendance and used by accounts to manage the financial data of the employees. Payroll processing is the processing of salaries for all your employees, taking into account various factors. Though a tough and tedious task at hand payroll processing is an important function of every organisation.

Some of the key departments from which data needs to be collated for effective payroll management are:

Human Resource: Leave balances maintained like paid, unpaid, sick leaves, planned leaves all form a part of the attendance records. The punctuality based on the arrival and departure timings also impact the payroll accounting and can be obtained from various record maintenance systems like registers and biometrics, access cards, login Ids etc.

Accounts: The accounts department holds data related to the loans and advances if any by employees, their tax declarations and lawful deductions and exemptions. All this data is pooled in to form a consolidated payroll for the employee. 

This task of collating all this data however tends to be manual and leaves the possibility of errors and inaccuracy. Organisations try and eliminate these errors by adopting various ways like employing full time employees for record maintenance and data collation, invest huge amounts in purchasing software and cloud infrastructure. 

 

Although logical and practical, these options are suboptimal and come with their share of maintenance. For example, hiring a full-time employee means salary deployment, purchasing software is a go on liquidity and requires maintenance and up gradation and issues with platform integration.

 

Re emphasizing the importance of payroll and its impact on various departments, it sows the seeds for the betterment of this function at all levels. Inaccuracy in any of the departments can have its impact of the take home salary of the employee, and most importantly employee morale. 

Therefore, in order that the above challenges faced in payroll management are avoided i.e. from data collation errors to employee motivation and morale it is suggested that the organisation looks at hiring expert advice in this field. Outsourcing the payroll management systems has loads of advantages to be looked at:

  • Expert advice on payroll data management and related compliances 
  • All Legal and financial compliances are taken care off
  • Timely payouts and distributions of payslips 
  • Data analysis and MIS Reports as per your business need.

 

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