Thursday, February 7, 2019

A Brief Overview of Payroll Processing: Manual and Automated

A Brief Overview of Payroll Processing: Manual and Automated


Payroll processing is one of the most crucial parts of any organization's ongoing activities. As it deals with salaries of people working for you, it requires your attention to be paid at all times. Basically, payroll processing is the procedure that is all about paying your workers their salaries on time. As the aspects are wider than we think, it needs a huge workforce dedicated to complete the activity without any errors.

The process of payroll can be divided into 3 stages/parts: First, the pre-payroll processes. It includes defining the inputs to be considered for paying the salaries of employees and the policies of your organization to be implemented also. Second, calculation of salaries and wages and if required adding the bonus or increments in it. Third and the final part includes the processes to be performed once the salaries are decided. It includes statutory compliance, payment of salaries and many more. Hence, whatever scale your business has, these 3 stages are required to be followed in the same order.

However, when we compare the manual processing of payroll with automated processing, always automated processing takes up the lead and provides us with more convenience in all aspects of payroll processing. Here are a few facets of payroll processing that are easily conducted using the automated system like payroll software.

A Brief Overview of Payroll Processing: Manual and Automated


Accurate Calculations

Manual processing includes a human hand in the calculation of wages and salaries of employees. Hence, the procedure becomes prone to errors and requires redundant calculations in order to decrease the number of errors occurring. However, the automated payroll software is using the computer to get all calculation done and hence feeding the input in computers you can generate accurate outputs in a few seconds irrespective of the complexity of the calculation.

Consistency Of Procedure

As humans tend to get ill and therefore require leaves and also are required to be paid, hiring an entire staff for working on payroll processing means spending time after their training and money after their salaries. Therefore, using software turns out to be beneficial as it requires only installation cost and does not ask for leaves too!! It keeps on working on its own and provides consistent outputs on time.

Security of Data

With the perk of being a cloud-based system, the automated systems offer their buyers security of data from any casualties or natural calamities. As all your data is on the cloud and is stored at different locations simultaneously, it offers authentication and data security in a single feature. As for the manual systems, the employees must be trusted with the handling of the data and must be kept under observation all the time.

Time Tracking

As the employees are abid by the rules to attend their office for a certain amount of time, it is required to keep track of the time each and every day. When manual systems lend themselves in confusion and also are very much susceptible to errors, automated systems work their charm and win the hearts by making the entire attendance system automated. Employees are required to log in and log out and based on which the time calculation is done.

Compliance Management

The final stage of payroll processing includes statutory compliance. Hence, your organization is supposed to pay and manage all the compliance related tasks efficiently else it can cause you a pretty penny in the form of fine or even lend you in bigger trouble. When manual systems are not proven as much efficient as automated systems, they lack the knowledge of any updates in government policies or sometimes fail to meet the deadlines. However, the software deals with compliance conflicts very well and also manages all the data online, safe and secure.

Therefore, automated systems overtake the manual systems in every way. Hence, most of the companies have started opting for software and has left behind the traditional systems of payroll processing. The software works as an extension for the payroll managers and simplifies the process for them for efficient outcomes.

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