What is a Payroll system?
In any accounting firm,Payroll refers to the list of its employees and the money paid to them. In a more generic and expanded way, it can be summed up as:
- The total amount of money paid to its employees.
- Records of a company’s employees, their salaries, bonuses and with held taxes.
- Department of the company that calculates and pays these.
Need for a Payroll System in an Accounting Company
Payroll system plays a major role in accounting companies in Dubai, or any for that matter, for several reasons. Integrating and streamlining Payroll systems help companies build efficiency and improve business strategy.Both the aforesaid percipience of a Payroll system greatly affects this system and therefore, before going to the question that why it is required to improve it, one should get the knowledge of why it is required in any accounting company as the answer to the former lies within the answer to the latter.
- Accounting Perspective:
Payroll system is crucial because Payroll and Payroll taxes considerably affects the Net Income in most of the companies. Also, it is essential to be followed in a proper manner because it is subject to laws and regulations in many of the countries including Dubai.
- Human Resources Viewpoint:
Good employee morale requires Payroll to be paid timely and accurately. The chief objective of the Payroll department in the accounting companies should check and is to make sure that all the employees are paid accurately and timely with the correct withholdings and deductions.
Ways through which a Payroll performance can be improved
Integrating the Payroll system with other systems and migrate to the web:
Many times, it is seen that if the link between the various business processes comprising Payroll system is failed, it becomes difficult for accounting companies to produce maximum ROI even by using the most powerful and sophisticated software
package. Although, electronic timing and attendance, monitoring, human resources, general ledger, tax reporting and retirement accounting are different processes typically controlled by separate applications. But system integration should be
the topmost priority of any firm so as to increase the reliability.
Customizing pay delivery for various employee segments:
In earlier days, Payroll was a fairly straightforward process. Nowadays, it has become a tedious task as in this modern era; a firm consists of many departments and subdivisions of those departments. Hence, there is a need to divide the Payroll system
according to the different departments so that the Payroll department, as well as the employees, do not suffer from any kind of discrepancy.
Consolidating the Payroll process and minimizing the pay cycles:
Redundancy of data plays a major role in shredding down the company’s efficiency. No doubt, it often becomes a necessity for accounting companies use the Payroll platforms in different locations, especially when they are tied up with a multinational
company. Moreover, centralizes reporting is also an essential deed. Hence, to reduce the number of pay cycles, one may use an alternative of consolidating Payroll cycles. This aids a firm a lot and adds up to the growth of the firm economically. It is also considered to be a time saving a task to consolidate the Payroll cycle.
Building effective reports and analytics into Payroll system:
A businessman cannot build up a new factory without getting the proper knowledge of what is going on in his organisation. Hence, it becomes a supreme part for the head of the Organization to know the labor cost of the organisation. This can only be done when the reports of a Payroll system have been prepared clearly without any ambiguities.