How Will Automation in Payroll Solution Impact Businesses?

It's one quarter down in 2019 and most of the things have changed radically in the way Indian businesses operate, but the HR Department is an exception which still works the old way. A cloud-based HR Software is a better solution for streamlining all HR functions, and has value for money as the central agenda. This is an article which serves as a guiding angel for your successful pursuit in finding a perfect solution for your HR department.

Automation in Payroll Processing:

One of the fundamentals of the HR work profile is Payroll Processing and this requires a considerable amount of input from all departments. The cloud-based HR Software collects the payroll inputs from the Leave and Attendance module, Travel, and Expense Management module, Performance Management System, Recruiting and Onboarding Modules, etc., and data is synchronized to the central database on a real-time basis to be processed together. An entire exercise of collecting inputs, compiling them, validating them, and disbursing is done by the software without any human interaction being required. The amount calculated is directly disbursed to the bank accounts of the respective personnel as the payroll software is linked with the bank directly. The functionality of making direct entries to the accounting software by making JV entries is exceptionally beneficial. When used together, the resultant system runs smoothly and eliminates the need for repetitive, manual data entry in multiple Spreadsheets, which are a sheer counterproductive duplication of work. This literally soaks in HR efficiency. So, integration of these modules reduces almost all of the clerical formalities of the HR job profile. These are peripheral in nature, but translate to the entire job profile.

Statutory Compliance and Comprehensive Reporting:

As you might relate, working with the statutory compliance structure in the Indian subcontinent is a difficult task with errors in Payroll, potentially resulting in legal prosecution and penalization. They are unwanted, especially by the partnership and listed companies. The HR needs to submit a lot of statutory compliance documents; including, PF Forms, ESIC contributions, ECR files, etc. on monthly, quarterly, and yearly bases without fail. As per the current scenario, this requires seasoned executives to process the documents as the risk associated with these documents is large. Moreover, this also leads to organizations outsourcing their Payroll and statutory compliance to the third-party organizations. They hire the services of a lawyer or an accountant, and complexity is enough to sink time, effort, and money without any sort of productive output. The cloud solutions offer instant response to every change in statutory laws, as they can be really dangerous for any business. As far as the legalities are taken care of by the software and not by any third-party, it makes organizations feel confident and self-reliant without overspending extra money. The reporting is also beneficial for the Indian approach, as businesses are turning rational, logical, and analytical with the emerging scenario demanding it. The reports can be useful for a lot of purposes, ranging from appraisal to internal audit trails to strategic management. The multiple formats as per requirement are generated instantly.

ESS Portal, Accessibility and Data Security over-the-cloud:

Cloud-based HR Software provides unparalleled access to the organization. The users access the system using any mobile device with internet connection, allowing employees to upload and manage their payroll and employee information, apply for updating attendance, and leaves. They can download their Payslips on the ESS Portal. This reduces the administrative overhead and helps properly channelize correspondence while increasing the scope of fair practices and transparency. Apparently, the data stored on the cloud is well secured by an end to end encryption and legal agreements. A backup for dealing with any sort of shortcoming is also available. The users choose to display only the relevant information to the concerned employees. Thus, one need not worry about entering the same information over and over again for all employee cadres. This mobility is for organizations operating from multiple locations and shifts without paying extra.