Starting and growing a business in the competitive market today is not a walk in the park. Business leaders have to juggle various matters such as clients, suppliers, products/services, statutory regulations, competition, employees, among others. To manage time more effectively given the many demands, business leaders have to transition from the manual way of doing things and automate some of the business processes.
One of the critical business processes that require automation early in the life of the business is Payroll processing. This is the process in which salaries are computed, deductions made and net amounts paid into the employees’ bank accounts. One very important factor in Payroll Processing is arithmetic accuracy. It is important to get the numbers right when calculating the gross earnings, bonuses, commission, overtime, and tax payable. Suitable payroll software can help a business automate salary processing achieving the required level of accuracy, reducing the risk of errors while saving time.
There are additional benefits of automating payroll processing as shown below;
- Easy and quick calculation of earnings and deductions
- Easy preparation of payroll reports and reconciliations
- Better, secure record-keeping with less paper and clutter
- Integration with online bank platforms eliminating errors in payment
- Integration with iTax making filing of P.A.Y.E. returns easier
- Employees’ remote access to information (Payslips, P9 Forms, Loan repayment schedules)
- Integration with other HRM Modules such as Leave Management, Overtime, etc.
Automating Payroll processing enables business leaders to manage a business efficiently avoiding the potential for errors and saving time as opposed to manual processing. Currently, in Kenya, there are various Payroll solutions in the market that would be suitable for all businesses from small ventures with two employees up to large enterprises with thousands of employees.
If you need assistance automating your Payroll processing or you need a Tax Compliance Audit, get in touch on 0700 053980 or email info@optima-accounting.co.ke for enquiries.