Everyone loves an unsuspecting gold mine, and you might be sitting on one right now if you’re an outsourced payroll service provider.
Payroll is often viewed as a cost center for accountants, accountants, and BPOs due to the manual nature of the processes involved. Yet in its position as a critical support system for an organization, it has the potential to be so much more. After all, a well-run and profitable operation can help your business grow.
The complexity and inefficiency of payroll are no secrets to anyone in the industry. However, these challenges became even more apparent during the pandemic, when a lack of remote access to payroll processes put companies worldwide under severe pressure.
While some solutions have emerged to support accountants and bookkeepers, many companies still traditionally process payroll fairly, leading to compliance issues and, unfortunately, errors.
People are the driving force that moves a business forward and ensuring they are paid correctly, transparently and effectively can be challenging for accountants but necessary to be right.
Investing in tools that help effectively manage the end-to-end needs of payroll and human resource management might be the area where accounting practices and service providers need to look to better support their clients — and their businesses .
Why is payroll still so complicated?
Traditional manual payroll systems can be summed up as unproductive at best, and with good reason.
Many companies still operate with systems that are not fully integrated, requiring the payroll provider to retrieve the relevant time tracking data from their customers via email, which is then manually entered into the payroll system.
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Not only is this an inefficient way of working, but it also greatly increases the risk of making payroll errors from the start.
Additionally, service providers must ensure they stay up to date with local laws while also managing unique employment contracts, which are becoming increasingly complex as many individual employee contracts contain specific overtime rates and vacation entitlements, making the process of calculating timesheet data difficult, time consuming and payroll difficult error prone.
Faced with these unique challenges, implementing an automated and integrated payroll system is critical to remain competitive.
How automation can give you a competitive edge
Through our cooperation with outsourced service providers, we see an increasing demand from these companies to offer more consulting services in addition to transactional manual work.
Because payroll is potentially one of the most tedious and time-consuming processes, an integrated, automated payroll solution can buy companies time to focus on more value-added processes while still meeting their payroll obligations.
Additionally, with the advent of remote working and the consequent increase in cross-border payment processing, many payroll providers are facing additional pressure to comply with ever-changing, complex legislation.
Fully integrated and automated payroll solutions can play a critical role in protecting organizations from compliance issues, reducing human error and increasing organizational efficiencies.
While these issues may seem trivial to some, the impact of implementing these changes and automating payroll processes in accounting firms and other payroll providers can make a world of difference to a company’s bottom line.
With increased productivity through a reduction in manual tasks, these companies can take on more consulting, business development, and people-centric tasks, resulting in a more efficient and profitable business.
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Why and How to Automate Human Resource Management in 2023 appeared first on e27.