Payroll processing in India is a monthly routine for most organizations, immaterial of their size. However, the larger the organization, the higher are the complexities with deductions and statutory regulations.

Enterprise resource planning (ERP) solutions integrate many operational areas of small, medium enterprises covering manufacturing, distribution, finance, procurement, and HR. However, when it comes to compatibility of payroll, to the software person and the system administrator, it becomes the last priority.

After implementing ERP, their Payroll service provider is called for only when issues arise. Contrary to popular belief, outsourced payroll operations involve multiple stakeholders performing different activities. In the hands of a wrong team, it can get cumbersome and could be error-prone. Some even end up entering the payroll expense manually into the General ledger. With an adequately integrated HR, financial accounting and ERP system, daily tasks and business operations benefit by the seamless integration of information processing. These results in avoiding duplicate entries and redundancies eliminate the cost of custom integration and employee reimbursement through account payables. Also, payroll compatibility with ERP gives self-service capabilities and helps run businesses in compliance with statutory regulations.