INTRODUCTION
A payroll is a list of a company’s list of workers or employees and the amount they are to be paid. But it is most commonly used to refer to the total amount of money that a particular company or organization pays to its employees, a company’s records of its employees ‘salaries and wages, bonuses, and withheld taxes. This is an important part of the business setup since it deals with the remuneration of workers in the company. Hence, keen attention must be paid to keeping this record safe and finding an effective way to pay the workers without hitches, this not only affects building the worker’s trust in the business institution but also reveals the health of the company’s finance.
Take a closer look
Any business setup whether small scale or large scale with more than one employee must have this payroll outsourcing system. Having defined the term payroll we can now take a closer look at what payroll management entails and the impact it can have on your business.
A payroll management system is an automated system that streamlines and organizes our pay into all its elements. it is a program that has the task of managing and consolidating the pay aspects of an organization’s employees.
Functions of a payroll management system
- It helps to generate a monthly pay slip and report for each employee
- It takes into account revised salaries following appraisals, rewards, pay for performance, fixed pay, bonuses, and variable pay.
- A very important function of a payroll system is that it takes into account attendance and automatically calculates the pay of all the employees. Click here to read more about When to Use Payroll Processing Services?
The impact of a payroll management system
Below are the impact of a payroll management system on the business enterprise;
- The financial health of the company; the payroll management system helps to pay the salaries and wages of the employees with ease, this helps to reveal the health of the company’s finance. Delay in the payment might be suggestive of a sick financial state while prompt and accurate payment of all salaries and wages to a large extent means that the company is financially stable financially.
- Accountability and transparency; a good payroll management system helps the company to keep records of the total amount spent on the employees within a given timeframe. Hence accounting for all money spent will be easy and traceable, and this helps the growth of the company as accountability builds the trust of your company’s employees and spurs them to work harder knowing that they are not in business with untrusted allies.
- Morale of workers; almost all our work for that financial reward at the end of our hard week or month. But what if your organization’s finance manager had no idea about how much was due to you, and what if he bungled with the pay? You would seethe in anger and frustration, right? It is exactly to curb this kind of situation that a good payroll management system is needed. If the above case study is not appropriately taken care of, it will reduce the worker’s morale to work in the organization and this will definitely cause a drawdown in the growth of the business enterprise. Visit https://talentedge.com/articles/8-major-roles-and-functions-of-financial-management/ to read about 8 Major Roles and Functions of Financial Management.
In summary
the above discussion has proven the indelible need for a payroll management system, as it helps the company to grow while encouraging the workers to stay committed to the ideals of the company.