How to Improve Your Payroll Accounting
A consistent approach to your payroll system is the simplest and most effective method for improving payroll accounting. Like anything simple, practicing the approach is often the most difficult part. A few simple steps can help you increase productivity, eliminate misunderstandings and maximise your profitability.
Be Overt with Information
You can never say too much when it comes to paying salaries, wages or contractor invoices. Keep your employees apprised of dates when they will be paid and if there are any changes to the calendar well ahead of any scheduled changes, such as holidays. Your company’s procedures regarding holidays, sick pay, superannuation and all entitlements should be communicated explicitly.
It’s easier to comply with the National Employment Standards when payroll and HR are integrated. Employees can be made fully aware of their obligations and your responsibilities.
HR plays a critical role in communicating information about payroll at the time of an employee being inducted and each of the 10 minimum standards can be addressed explicitly to avoid confusion later on. When changes are made to payroll, HR should be involved to communicate the reasons and impacts, and to provide further assistance where needed.
Involve Your Employees
Taking your payroll and HR systems online means you can give employees access to their profiles and allow them to report paid and unpaid leave as well as managing expenses and other payroll-related functions. With steps in place for verification by managers, paperwork is avoided and payments can be managed and tracked throughout your organisation.
Changes to the legal framework governing employee contracts can place an unnecessary burden on business. Outsourcing payroll management relieves companies of time spent on non-core business functions.
Specialist service providers in payroll services are responsible for maintaining software and hardware as well as paying highly skilled computing professionals. Software as a service and cloud-based business frees up companies to focus on their core competencies, delivering products and services at the highest level possible.
Review the System Regularly
Scheduled audits of your payroll system address several issues that are critical to operating a business. Ghost employees set up by nefarious internal or external parties can also be uncovered by regular reviews of your payroll practice.
Here are just a few elements to review:
- Over or Under Payments
If all your systems aren’t integrated, a manual audit will uncover errors made in payments. Businesses can often be at fault when changes made to employee contracts are not reflected by payroll.
A regular security audit ensures that your critical information has not been compromised. Check for malware, suspicious emails and new accounts as well as changing passwords to critical information systems.
Check that all HR, accounting, sales and marketing plug-ins are operating as expected. This is another process that allows you to check any breaches to the security of your payroll system.
Payroll Providers for Victoria
Improving your payroll process can take time and expertise. For advice on how to streamline your payroll system and create value within your organisation, call i3Group.
We are a wholly-owned and operated Australian company dedicated to delivering best-in-category services to companies in Melbourne and all over Victoria. Our experienced and professional team of payroll specialists is available to provide a payroll management and software system tailored to the unique needs of your business. Call 1300 725 647 or contact us via the online enquiry form