Management of accounts can be time-consuming and requires precision. Integrated systems make it easier and more efficient.
Companies of any size can combine a payroll service and bookkeeping or accounting software. If you have a combination of a bookkeeping service, payroll, and an accounting package they might need to communicate.
You can control things such as:
- Compensation
- Benefits
- The taxation amount
- Accounting journals
- Reconciliation of the Payroll System to the Accounting System
Integration allows you to save time, energy, and effort every time you submit an RTI or run Payroll.
Exporting all payroll transactions to your accounting system is an important function that you should search for in any payroll program.
This will ensure that books and payroll ledgers remain in sync. It is essential for correct tax forms to be provided, both for payroll and business taxes.
Reasons to Integrate Payroll, Bookkeeping and Accountancy
You may be already working with an accountant or bookkeeper as a business owner.
You may consider outsourcing your Payroll. You will lose out if you don’t integrate all.
Here are some reasons why Payroll, Bookkeeping and Accountancy should be integrated
- Protects Profitability
Your most valuable asset is your people, according to an old saying. They are also your most expensive expense. The payroll team or contractor must ensure that they get paid on time and at the right rate.
But, it’s only half of the battle to pay them on time.
You must consider the cost of your employees before you can run a profitable business.
It is important to consider the impact of employee costs on the bottom line, including overtime costs, employee costs as a percentage, costs by grade/level, similar costs between teams and costs across the board.
The payroll provider can tell part of the story. The bookkeeper and accountant maintain another piece of information. You will need to combine bookkeeping, payroll, and accounting to get the full picture.
The big questions about personnel can be answered by combining the three.
- Are you too many employees or too few?
- Why is Team X more profitable than Team Y?
- Which is the most profitable way for a company to be run over time?
Integrate and you will find it much easier to find answers that will allow you to forecast, plan, and execute more effectively.
- Correcting tax
If everything goes according to plan, your Payroll will feed directly into your bookkeeping. The two will always work together.
However, every organisation has employees whose arrangements are a little more complicated–changing from full-time to part-time employment (or vice versa). Apprentices are those who are learning a trade.
Each country has its set complexities and paperwork.
It is much easier to integrate payroll and accounting to make sure everything matches up when you file your tax return.
- More efficiency with less effort
It can be difficult to process payroll and bookkeeping in-house.
This is one reason why so many companies outsource.
But, outsourcing Payroll, bookkeeping and accounting separately can still be inefficient because three distinct approaches (and three sets of people) manage each detail.
It is possible to reduce the complexity by using the same software, or different but integrated programs. However, the best productivity comes from having it under one team’s control.
It eliminates bottlenecks and provides economies of scale. Additionally, it makes it easier to spot productivity changes and other opportunities.
- Reduced effort
You can combine your Payroll and bookkeeping to make it easier for everyone to work from the same data. This reduces the chance of mistakes and ensures that no data is lost.
- Less admin work
Payroll can be outsourced and each month you pay separately. You will only need one point of contact.
You can integrate all three and pay one monthly payment for them all – you’ll still be able to see where you are.
- Time Saving
All systems will automatically sync and exchange information, so you won’t have to enter data manually multiple times.
Everyone will be able to see exact numbers in real time, reducing the chance of documents with contradictory details.
- Reporting
By integrating Bookkeeping, Payroll, and Accountancy, you can generate different reports customized to your needs. The automated functionality allows information exchange in real time.
- No Repetition or Duplication
The traditional way of using software is to enter the exact details repeatedly. Any data entered must also be consistent across multiple systems.
You must, for example, enter employee compensation information into your payroll software.
You only need to submit one form to integrate Payroll, Bookkeeping, and Accountancy. This will allow your accounting and payroll software to communicate and save time.
Employees are more inclined to reduce costs, improve productivity, eliminate duplication, decrease errors, and eliminate hunger by using software that interoperates with each other.
- Smooth workflow
For accounting to be more efficient and improve financial performance, book-keeping and accounting software are essential.
It makes it possible to enter smaller numbers, track revenue and expenditures, and pay much quicker.
Payroll software saves time and eliminates the tedious task of manually calculating compensation and making multiple bank transfer requests.
Your workflow will be more efficient and smoother if you get all your software systems working together quickly.
- Measurement of employee costs
If you include Payroll, double entry bookkeeping and accounting, it is important to calculate employee costs as a percentage revenue.
Companies strive to have a favorable employee-to-sales ratio. If you spend too much time on employees, your performance will suffer.
This is especially true if overtime salaries are paid in large amounts. These costs can add up quickly without you seeing the impact on your bottom line. Integration can be a great way to measure employee costs.
The advantages of integrating Payroll, Bookkeeping and Accountancy software
- Automatic Information Sharing
Every software you use requires data input. Data entry is required for any software you use, including apps and software.
Payroll software, accounting and bookkeeping software, for example, require information about the employee’s salary.
To use traditional software, you need to enter the exact details repeatedly. The integration allows you to enter the information once and the software will exchange it automatically. This reduces manual effort significantly.
- Less need for specialised professionals
Manual efforts are decreasing, data combining is simplified, and controls are simpler, so there’s no need to hire professional for different applications. Modern apps are now cross-device compatible to access them while on the move with your smartphone or laptop.
This gives you an additional reason to manage your business independently and not hire someone else. The company will also be able to save money on staffing and other resources like machinery and facilities.
- Better control
Applications can fill out forms, prepare master data files for all company employees, calculate estimates, handle statements, remind due payments, plan bills, view employee results, create master data files, and many other functions. It is more difficult to manage the many applications. These issues can be addressed by integrating them.
Another can control one application. Many of the most popular applications have an integrated feature that allows other business applications manage them. You will find it easier to use the same application more often, and you’ll be able work more efficiently.
Winding-up
Payroll services will allow you to quickly and accurately measure payroll data without human error.
All workers would be entitled to compensation, regardless of whether they are part of a collective arrangement. This is especially useful when you deal with workers who are paid an hourly or annually.
Payroll simplifies the lives of business owners by integrating Payroll, accounting, and bookkeeping. The integration can be customized to meet their specific needs. Integrated Payroll, bookkeeping, and accountancy will help you achieve better business results.
