How does ERP Accounting Software help the Organization in Payroll Compliance?

1. How does ERP Accounting Software help the Organization in Payroll Compliance?

2. Payroll compliance, or statutory compliance, is the legal mechanism that organizations are mandated to follow for employee treatment. Organizations need to take care of their employees and safeguard them from risks and threats including but not limited to, effectively paying salaries that are in sync with employee expenditures such as rent, loan premiums, etc. A significant chunk of the organizations’ time and money goes into making the compensation process streamlined and complying with these regulations. An ERP accounting software enables the organization to take on more tasks than the average employer and expedite its remuneration efforts. Software that is compliant with the reward systems of the organization can be tailored into the software to customize the functions of the organization and fit the needs. For organizations with a medium to large workforce, and multiple funds to manage and disperse, an ERP saves the time and cost invested in the upkeep of repeatable tasks. Accounting Softwares Are Different from an ERP While an accounting service will only provide tasks limited to financial records such as balance sheets and ledgers, ERP solutions include a combination of different modules like accounting services, supply chain management, and inventory management. With more and more e-commerce and tech companies automating their tasks, payroll compliance was a rather easy choice to make for many of the big players. Information is Safe, Transparent, and Revisited As aforementioned, an ERP is a cog in the system with lots of small cogs under it, where it manages financials, inventory and purchasing, HR, warehousing, quality management, among other things. That means all the elements fall under the same umbrella and are designed to fetch relevant information if required. 2 or more different elements therefore can work in tandem to complete complex tasks, calculations, and processes. Effective payroll processing will include calculating wages on the basis of working hours and days, attendance & appraisal management, PF, tax calculation, and deductions or concessions based on the nature of the organization. These items are the first that are catered to, calculated, and updated according to regulations, once the amounts are reviewed and the final amount payable is calculated and processed to the employee’s account. Since data sharing is one of the more obvious features of an ERP software, there is reliability on the metrics the system provides and teams can work with much more alignment. Skipping Stones into the Future An ERP is one of the most complex technologies currently on Earth and reasonably so given the magnitude at which it has helped scale human output and efficiency by managing large workforces. Consider this for scale, the US Department of Defense employs 3.2 million people, Walmart clocks in at 2.1 million, and Indian Railways at 1.4 million, all as of 2015. Most of these giant employers are government employers and require heavy workforce management, in which technologies like ERP have played a critical role and will continue to do so.