Payroll preparation with heavy reliance on manual steps can expose severe control lapses. Spreadsheets with complicated formulas managed by a specific resource may also prove to be risky.
On an average mid-size and large companies spend 5 days or more to complete the monthly payroll process and onward disbursement. However reliability still remains uncertain as there are too many variables other than just monthly salary. Some key areas that require special attention in most of the organization
- Employee master data must be treated sacredly and only concerned user should have access to same.
- Companies need to manage deductions or additions in a systematic way that may have a considerable impact and manual management is prone to mistakes.
- Most of the organizations fail in managing authentic leave balances, having large headcounts it is almost impossible to track the real absences. Without a proper automated system it is extremely challenging to account for credible leave balance and resultant financial impacts.
- Time and attendance control often segregated from the payroll process.