What are the other benefits of using a Payroll System?
Accountability and Audit-Tracking
The second benefit to using a Payroll System is Accountability and Audit Tracking.
Imagine – an employee was mistakenly paid for 20 hours of overtime, only to find out that the overtime was not approved in the first place. Or someone’s salary was suddenly increased by 20% when it should have been only 5%.
If payroll is being done manually, it can be difficult to track who was responsible for these changes or mistakes.
A good Payroll System lets you track changes to the data, including which person changed a particular record, and what the actual changes were. So if there is a need to see who made a particular change, you will know who was responsible.
A good Payroll System will also track who accessed the system, and from which computer. This helps prevent fraudulent transactions and makes everyone accountable for their actions, since it is now possible to conduct proper audit tracking and investigation.
Audit tracking also lets you see when a particular record was created, who created it, when it was approved, who approved it, who cancelled it, etc. So if you need to see who approved a person’s overtime; who approved a leave request; who changed a person’s salary – a good Payroll System lets you keep an eye on things and know who was responsible.
Part 3 – to be continued