Payroll Management: 6 Easy Ways to Manage Payroll Effectively

October 3, 2020by Shalaka Joshi0

Managing payroll systems isn’t an easy job. Whether your company is just starting or whether you have grown is a mid-sized company that’s humming with business; we could all use some help with payroll management.

But the question is… from where to start?

Considering that automating tools help considerably in streamlining your payroll management systems, how exactly are they to be managed? We all could use some expert advice.

Once we have got the basics right – everything else falls into place.

Here are the key things to keep in mind.

1. Complete your payroll management records

Keep the basics clear. Centralize and store your employees’ details, official deductions, bonuses, benefits, and overtime in a single sheet.

You can even use payroll automation software where everything is stored against proper names.

If your employees expect any changes in those details, let them know that they will have to report in advance. After all, if the records are right, then only the payroll will move smoothly.

2. Use an electronic payroll system

Are you still recording the time your employees put in manually? 

That way, you are not only using up more time but also rendering human errors that may just increase TAT.

Adopt an electronic system that stores everything in one place and send you automatic alerts, warnings, and notifications when something doesn’t add up.

You could also customize the software as per the policies of your company.

3. Open a separate payroll account

Opening a separate payroll account helps you manage your operating cash and your taxes & payroll cash differentiated, helping you manage both with ease.

Your bank can become invaluable in this case. The representative will guide you on managing your expenses and operating cash, helping you manage cash on hand whenever it comes to payroll management.

4. Create an integrated network

If your employees are punching in on time, if certain updates are given or not, all of this can be tracked to one centralized system.

Going electronic not just for the payrolls, but also to manage other systems of records is integral in defining a smooth-running system.

An integrated system allows manual efforts to be drastically reduced, and human errors are largely eliminated.

5. Keep an eye on changing payroll regulations

The tax regulations related to India payroll change frequently.

Hence it is imperative for any business to keep a close watch on these changing statutory compliance & payroll regulations and ensure that these are incorporated in the payroll cycle on a timely basis.

After all, everyone wants to be tax compliant all the time. 

6. Consider outsourcing payroll agency

At the start, any business has a minimum number of partners and a small staff size. As the company grows, so does everything associated with it.

Payroll management requires multiple changes and redefinitions. Consider outsourcing your payroll services. Remote payroll processing services help your company’s system align with that of the state rules & regulations.

With a whole team dedicated to looking after your payroll tasks & milestones, your company will have a smooth humming system.

Your key to success

To summarise quickly, use an integrated network to eliminate human errors, open separate payroll accounts, and keep your systems up to date with the industry’s current trends.

Encourage your employees to be proactive in updating their details.

Last but not least, having a dedicated payroll management services agency can be a boon for today and years to come.

by Shalaka Joshi

Mrs. Shalaka Joshi is the founder of Finsmart Solutions and operates in the capacity of Managing Director. A Chartered Accountant, with passion and love for accounting and payroll. Shalaka has more than 17 years’ experience in field of Accounting, Payroll and MIS reports.

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    Finsmart SolutionsHQ
    Electronica Finsmart Solutions Pvt. Ltd.
    1, Mandakini, S.No. 64/24,
    Income Tax Office Lane, Erandwane,
    Pune, Maharashtra -411004 INDIA.
    Get in touchFinsmart Solutions Social links
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