All business owners agree to the act that ensuring correct and on-time paychecks is one of the top challenges. In the initial days of a business, payroll management is rather simple because of few employees. But as your business grows and more employees add to your team, it becomes hard to record, track, report time and attendance, and meet payroll deadlines without fail. Payroll processing can easily get overwhelming in a growing firm.
Payroll process needs differ from firm to firm. However, every firm requires a streamlined and strong payroll process. The challenge lies in identifying what changes must be implemented. For this, it’s important to create a solid strategy instead of changing things as they come forward.
Gretis India Pvt. Ltd. brings you some of the most efficient ways to create a strong payroll management process:
Create a Single Payday Schedule
Some companies have a habit of creating different schedules for the payroll processing of different departments. Doing so may help you streamline payroll for each department. However, the payroll process tends to become erroneous and less efficient.
Once you consolidate the payroll data, you’ll have all the information of all the departments to run the payroll. This way, there will be less process duplication and consequently, there will be fewer errors.
Distribute Payroll Duties
Assigning all payroll processes to a single person may cause errors, missing deadlines, and even fraudulent activities. The correct approach would be to distribute various roles and responsibilities among the department. While one person is responsible for timekeeping, the other one will update employee information, another will look after payroll authorization, and so on. This will take the entire burden off a single person’s shoulders, allowing you to create a more efficient team.
Stay Updates with Compliance Policies
Failing to comply with statutory rules and regulations is the primary reason why many businesses face legal and financial penalties. That’s because companies fail to stay up-to-date with compliance policies, labor laws, tax updates, and other government reforms. These penalties can also lead to more serious concerns and may cause problems in the growth of a business.
To avoid these penalties, you must make it a habit to review tax and other legal policies on a regular basis.
Payroll processing requires a lot of time, effort, and focus. These are the most important resources of a company. And if you are doing all the payroll processes manually, you must be spending numerous valuable hours in a non-core, non-revenue generating task. Manual payroll processing is also prone to errors, and you never know which error may lead to what consequence(s).
This is why you need to automate your payroll processing. With the power of automation by your side, you’ll be able to save precious man-hours and spend them on other business processes. Automation also makes things faster, more accurate, and more efficient.
As far as the automation software goes, you can choose to build your own payroll management software from scratch. You can also choose an over-the-shelf payroll processing software that suits your requirements. Readymade software can be purchased as a White label solution, or in the SaaS (software as a service) form.
Training Sessions and Education
The best thing about knowledge is that it’s infinite. We can choose any field of work and explore it in great depth. The world of payroll management is not an exception to it. HR and payroll departments have different roles. However, if you want to make sure these departments work you need to ensure these departments know about each other’s processes clearly.
As long as these departments work in tandem with each other, there will be minimum hiccups in payroll processing. But it doesn’t stop here. You’ll also need to ensure you implement the latest tools for these departments and train them to use these tools in the most optimum way possible.
Document and Audit Your Payroll Process
Once you’ve found the right payroll process that complements your business, you need to document it for future reference. As your company grows, you’ll have new employees on board. That will also include new people in the HR and payroll department. In such a case, these documents will help in better on boarding.
Moreover, documentation also helps you identify weak points in the payroll process. Documentation also helps in auditing and compliance.
All the steps mentioned above can get overwhelming. At the same time, payroll processing itself is an uphill task. In the end, you find yourself struggling more to get the payroll right instead of finding ways to grow your business.
As a result, it becomes unbearable for a business owner to sail in two boats simultaneously. This is where payroll outsourcing comes into the picture. With an experienced and trusted payroll outsourcing firm like Gretis India, your worrisome days of payroll processing become a thing of the past. You open more gateways to growth as you’ll have more time to focus on your business.
As you can see from the points mentioned above, streamlining payroll processes is an ongoing task. There are so many layers to payroll management that getting it right every time is not easy at all. This is why businesses are opting for payroll outsourcing these days. Payroll outsourcing is not a luxury that few businesses can afford, no. As a matter of fact, payroll outsourcing is an integral part of business dynamics now.