One of famous questions that often arises among working class is “What is Payroll?”. Payroll is a very important task of any business and insists an understanding of current regulations, detailed tax knowledge to ensure proper withholding and filing, and a highly organized system that can be relied upon to pay each employee the right amount of money. From a humble ledger book accounts; cash salary payments to e-transfers and auto-debits, the payroll system has come a long way. In the midst of widespread uptake of automation and cloud-based solutions, what does the future of payroll look like?
Cloud-based payroll technology
The future of payments processing will be completely digital and most of the information will be stored in a cloud-based system. This enables companies to improve their efficiency in bulk-payroll processing and creates a method to digitise all their records. Furthermore, it provides better access and allows you to easily incorporate multiple users into a single account. Shifting to a complete cloud-based system is the much-needed digital transformation initiative in payroll. A cloud system reduces the cost of physical asset maintenance such as computers or memory cards, network hardware or Information Technology (IT) personnel to record the data on a device. Cloud-based payroll is something that all Payroll Service providers should get themselves adapted to as its likely going to be a new trend in Payroll Processing Services.
Integrated systems:
Complete digitalisation will lead to an integrated system of payroll processing or Payroll Processing services, a natural progression. These systems will integrate payroll, accounts and HR functions in a single portal. Further, they will ease the maintenance of employee records and enable processing information at a glance. Integrated systems that include Human Capital Management (HCM) and accounting give organisations a greater control over both data and process and plays an important role in maximising efficiency. An integrated system will further lead to increased access to information for employees and employers alike.
Automated payroll systems:
Payroll is probably in the early stages of Robotic Process Automation (RPA) – a role that duplicates similar patterned work, freeing humans of labourious tasks. Automation in payroll improves the ability to perform repetitive, high-volume tasks that have low creative thinking. With the robot’s speed and accuracy, a large set of payrolls can be processed very easily. In its further stages, RPA could lessen the burden of tracking bills, creditors and outstanding. Another potential application of automation in payroll includes automated data validation – a much-needed requirement to verify digital documents. Also Automation in payroll processing will help reduce costs, avoid errors and free humans to be able to do more cognitive tasks which allow Payroll service providers to work more efficiently towards enhancing their Payroll outsourcing services
Predictive Analytics:
With an increasing number of gadgets and humans being inter-connected, data explosion is set to occur. Complete digitization also means availability of excess data. The onus on Big Data, analytics and behavioural analysis form the critical nodal point in any enterprise these days. Although classification & categorising data is important, presenting consumable data from these large volumes is the need of the hour. As organisations realise the wealth of data available through their payroll and HR systems, companies will look for opportunities to apply a useful method of analytics that discovers consumable data. Such predictive analytics will help in foreseeing risks, detect patterns and establish a safe system processing method.
Better Compliance management:
For several multi-nationals and start-ups trading across the world, payroll compliance and payment procedures vary around the globe. Local, national and international labour and tax laws change all the time. Keeping on top of the changes is a tall order for any payroll department. The introduction of automated payroll systems and outsourced payroll processing will help firms move away from this hassle. Application of technology to payroll processing has made it simple. Data entry, attendance and leave management – some of the administrative functions are time-consuming and add to taking time away from strategic parts of the job. Automated systems thus improve efficiency and enable better compliance system management and provide a system that enables informed decision making.
Technology intrusion is changing the future ways of working and payroll processing is all set to benefit from its advancement!
At TalentPro, while we serve PAN India, we specialise in offering bespoke and innovative payroll and workforce management solutions. We deploy state-of-the-art technology to help our clients achieve their business goals. We innovate with our clients, for our-clients.
