Why Australian Companies Must Take Care Of Its Finances


Aside from ensuring that the company’s asset finance is well taken care of, the executives must also pay extra attention to its payroll system. Once a company’s payroll system is flawed or lacking in efficiency, it can be a safe bet that it will lose significant amount of money in the long run. For the most part, companies have separate departments for human resources (HR) and payroll. On one hand, HR departments focus on developing, advising, and implementing policies in relation to the effective use of personnel within a company. HR officers often cover activities involving working practices, recruitment, and employment conditions, to name a few. Payroll departments, on the other hand, are responsible for computing payroll and taxes, ensuring that the employees’ wages or salaries are as accurate as those displayed in their paychecks. In addition, they ensure that any tax with holdings and deductions are remitted in a prompt manner.

That setup was a thing of the past, however. Due to the prevalence of various software and other digital business solutions, HR departments in a lot of companies have increased their workload, taking over other duties such as handling employee payroll. This is where the integrated payroll systems come in. Basically, the integration of HR and payroll involves the use of system software that allows both departments to access and pull out information about employees and their salaries or wages and tax contributions. Because of this, other related factors may also be coordinated, including but not limited to the company’s asset finance. Since both departments rely on the same information, the integration between the two brings a lot of stability in terms of personnel development.

What makes HR-payroll integration one of the best internal schemes to venture on within the company is that it helps reduce the need to use paper in order to record personnel and their payroll information. A software system is used, which allows users to record and compute payroll, deductions, and withholding tax, and then save on a database for future reference. Aside from the absence of paperwork, the system also allows for establishing updates into the software’s database with regards personnel. In case someone is hired, for example, an HR officer would add his or her information into the database, and then the payroll officer would go to the database and supply the necessary payroll and benefits information. Here, a lot of time is saved, allowing those involved to take on other tasks throughout the duration of the workday. In addition, the data supplied by both HR and payroll departments for single personnel file are already consolidated, thus reducing administrative duties by a great deal.

While integration of HR and payroll departments through software and other business solutions have its own benefits, there are also its own disadvantages. An example of such is that transitioning into this setup would require spending on finances for skills training and solving certain problems that may come into play while employees from both departments learn the grasp the new system. Although that is the case in , companies never shy away from the long term return of investment in taking advantage of an integration system.

A lot of employees in Australia have wage and hour issues with their employers, filing claims of unpaid wages. Employers, however, can avoid these instances by taking advantage of software that would enable them to record personnel information, especially regarding salary and wages. With the technology in their hands, any inconveniences can be avoided between them and their employees.

If your company wants a more seamless and systematic way for payroll, then integration is very much advisable. The system will not only make everything more convenient but more organized and efficient. Any company in Australia should realize the benefits of a more organized payroll as it can greatly affect their way of handling and managing their employees. At the end of the day, if the employees are happy and content with the way their leaders manage them, they will be more motivated and productive, benefiting the company.

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