The payroll consists of a list of the compensation that was paid to the employee, transforming labor information into accounting data. Its main function is to calculate what each person in the company has to earn and what has to be discounted. Therefore, you need to be careful to do the calculations correctly.
The big problem is that many companies still use old methods of sheet issuance. To ease the process and make HR and Personal Department routines simpler, today’s article will show the advantages of automating this process. Check out!
8 Reasons to Automate Payroll
1. Obtain greater accuracy of data
The payroll must contain the following information: name of the employee, position, identification documents, payment specifications, bonuses, discounts, maternity wages (for women), leave and quotas of the family wage.
With automation, the data presented is much more accurate. The person responsible for calculating is much more likely to fail than an automated system. With a payroll system, the information is placed exactly as it should be.
2. Centralize information and data
As many information is present on a payroll, when the process is done in a traditional way the service becomes more complicated. This is because the person in charge will have to search data in several places.
An example of how centralization is important: A company has hundreds of employees and every month needs to issue payrolls. However, each employee has its own specifics. When reconciling data through an automated system, the chances of error are minimal.
Incidentally, this avoids legal problems because of incorrect or incomplete information. This is because automation ensures that all rights will be assured as well as avoids claims and even legal proceedings arising from failures.
3. Have more agility
Agility is a visible advantage of payroll automation. The manager and the staff responsible for issuing the document become more productive. They can do data import systems like ERP, which makes the process faster.
Does any employee need to be admitted? Does a collaborator now hold management position? With DP system, this will be far from a problem. Through it, it is possible to process quickly the payment of employees, as well as control the plan of positions and salaries, discounts, among others.
4. Make financial control more effective
Every month, organizations need to balance their revenues, check bottlenecks, and possible improvements to be made. With an automated payroll, the job becomes much simpler.
An online system allows automatic calculations of Income Tax withholding Tax Statement, controlling the tax obligations that need to be met.
This advantage is visible mainly at the end of the year. With the arrival of the recess, those responsible for payroll have to organize to deliver the work all in time. This makes it easy to identify financial failures that could harm the company in the future.
In fact, the final months have some specificities. For this reason, having a solution that speeds up the process is essential. Moreover, with the program it is possible to make calculation of collective or individual vacations, advance payment, among others.
5. Generate reports
The system generates a multitude of data on several important business issues: taxes paid, per capita earnings, annual postings etc.
If, for example, the monthly costs are asked for with transportation vouchers and employee vouchers, the program will allow the necessary information to be gathered without a headache. That is, you will not need to resort to mountains of paperwork, do calculations by hand and waste time on something simple.
The automatic system also allows you to pull reports of all payments made. If you need to make calculations based on net salary, everything will be present in this financial statement. In fact, up to the type of salary (made up of participations, for example), gradual increases and changes can be accessed.
6. Obtain the history of each employee
A company that cares about quality management needs to have as much information as possible about each employee who provides services to it. With a computerized payroll, gathering the necessary data becomes much simpler.
It is possible to know about vacations already taken, licenses, schedules (integrated point sheet), departures, occurrences, salary adjustments, among others, automatically. All of this is critical to human resource management and strategy adjustments.
7. Processing Payroll for Error Correction
Some unforeseen events can happen and, as a consequence, a new payroll is required. With the help of the computerized system, this can be done easily.
If a recalculation is required or if a dismissal occurs, the personal department will not need to panic to gather all the necessary information. The DP system is able to store and store information for long periods.
8. Facilitate internal and external audits
Large companies are required to undergo internal and external audits, which consist of the analysis of the financial statements. External auditors, for example, need to find out if what was presented corresponds to the assets held by the organization.
The financial position of the company cannot contain any misleading information. Therefore, it is necessary to present copies of employee payrolls, and this only becomes less costly with an appropriate strategy.
Most managers have a routine full of responsibilities. Due to the current demands on bureaucracy, everyone’s desire is to make tasks easier and more organized. That is why it is so important to hire a quality system for the company.
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