A Brief Overview of Payroll Processing: Manual and Automated

by - February 26, 2019

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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