The difference between an informed decision and a wild guess is whether data is used. Accurate data and reporting play an integral part in helping business leaders assess the full costs and organisational impacts of both large and small decisions. The same holds true for payroll data. So, why is payroll data important?
Whether you’re a business owner, in charge of HR and payroll, or simply want to better understand the payroll side of the business, payroll reporting can help:
Guide better business decisions
Payroll data can be a useful strategic tool for senior management in making decisions about the future of their company. Data collected by the payroll department can be used to analyse salary costs to develop business strategies and accurately predict what payroll is going to cost the business over the next quarter or year. Therefore, the data needs to be right and accurate, using the correct payroll software can help you achieve this.
Help manage cash flow
Payroll is one of the most significant expenses that can create cash flow issues for many businesses. Having the correct data and payroll report handy will not only keep your business in check but also ensure that you are not underpaying or overpaying any of your employees. Most payroll software can accurately report, and track hours worked, overtime, sick days, employee taxes, and tax deductions.
Stay compliant with taxes
As a business owner, you are responsible not only for paying your own taxes but also the taxes of your employees. Automating your payroll process with a payroll software management solution can help you stay up to date with the latest legislation and keep all tax documents and reports in one place for quick reference or changes, making filing tax returns a lot easier, and lowering your chance of being penalised by SARS.
Payroll errors can be tiresome. They can take your payroll team ages to rectify when they crop up, reducing time spent on other tasks. Processing errors in payroll can therefore quickly become very expensive, no matter how small they are. Having knowledge about your payroll data and tracking them through payroll software enables you to quickly identify and correct errors, which will ultimately allow you to avoid financial losses.
Gaining insights from your payroll software through custom or pre-built reports means you’re better utilising payroll data to drive business choices. Business decisions should be guided by facts, which data provides, and having access to this information gives you a competitive advantage in your business.
You have the upper hand if you can confidently make strategic decisions without guesswork.