Reaping the Benefits of using a good Payroll System
Why you need to invest in a good Payroll System
All companies start out small. With just a handful of employees, it can still be manageable to handle your payroll manually using Excel or your favorite spreadsheet program.
But what happens when your company starts to grow, and the # of employees that you have grow from 5 to 10, to 20, to 50, to 100 or more? How long can you keep up with just using spreadsheet files? How soon before you start making mistakes? Some mistakes might even be costly or might even get you in trouble with DOLE or BIR! Soon enough, you will be spending most of your time doing payroll rather than doing more important things for your business!
Without further adieu, we now present the top 10 reasons or benefits on why you need to invest in and use a good Payroll System.
1. Data Convergence
Here’s a typical scenario:
- The Operations department handles the work schedule of employees, as well as the approval of overtime, approval of leaves, and processing of time and attendance.
- The HR department handles the compensation and benefits of employees, as well as changes to employee 201 records.
- The Accounting department will handle the actual payroll computation, approval of loans, tracking of loan payments and balances.
To be able to process payroll properly and efficiently, you need to retrieve the necessary records and information from all these departments. This leads to a lengthy and manual process that is also prone to error, since information is coming from separate sources.
By utilizing a good and efficient Payroll System, you achieve data convergence, since all the information that you need will be stored in a single data-repository.
HR only needs to ensure that employee records are updated, including the compensation and benefits of each employee.
Operations will ensure that work schedules are properly entered into the system.
When payroll is processed by the accounting department (or HR department, depending on who the task is assigned to), you are assured that payroll will be done correctly and efficiently, since all the necessary records (such as time and attendance, employee salary information) come from a single source. There is no manual passing of data, no double-entry is needed, and there are no delays due to missing data, since all the information that is needed can be easily retrieved by each department.
Part 2 – to be continued