Payroll Processing – Challenges faced by Payroll Accounting Team
Payroll processing can be a challenging process for every company, irrespective of its size. As the number of employees increases, the process becomes even more complicated and time-consuming. Gathering the information of each employee, calculating their gross and net pay, budgeting, calculating the accruals and taxes are part of payroll processing. Organizations are shifting to payroll outsourcing in UAE to ease their load. Outsourcing the payroll processes can be of help to the entities in numerous ways.
The challenges of payroll processing in UAE are many and it also affects the functioning of other departments within the organization. The repercussion of inaccurate data shared with the accounting department leads to numerous miscalculations that could hamper the business reporting requirement if the inaccuracy stays unnoticed. Some of the challenges faced are:
- Lack of accounting background and budgeting knowledge: In most organizations, payroll functions are generally managed by the HR department. HR professionals are excellent at their core function. However, they may not be able to facilitate the balance sheet requirements of the accounting team. The inaccurate figures passed on could take up a lot of time to rectify and lead to numerous misleading reports and budgeting mistakes. Lack of accounting background and budgeting knowledge can be the reason for these errors. In such cases, it is an added load of work for the accounting department.
- Inaccuracy in Accounting reports:Inaccuracy in accounting and finance reports can adversely affect the business. The cost allocation of the company to meet its requirements can be affected if the payroll details are not accurate in the accounting records and reports.
- Timely payment:Processing the payments of employees on time is the most challenging aspect in payroll processing. All the calculations must be accurate and should be processed on time. The organizations cannot afford to take risk on this as timely payment to the employees is a matter of existence.
- Confidentiality:Due to confidentiality issues, companies are hesitant to share the employee-wise salary information to its finance team. Payroll outsourcing is a solution for this issue as the finance team will get the report from a team of payroll professionals and they can completely rely on this report.
- Higher costs:The vast amount of time involved in payroll processing compels companies to maintain a well-experienced professional for the same. Employing a professional to undertake the payroll processes can be more expensive than outsourcing it. Apart from the salary, the maintenance of the employee, office space, stationary, furniture, IT equipment, etc. are additional cost that can be reduced by engaging an outsourced team of experts to manage this function.
Payroll processing is a complicated and challenging process. With the advancement of technology, new and improved methods are being used for payroll processing. Managing payroll in-house could bring in added expenditure; hence it is wise to choose the right payroll outsourcer who can handle your processes with ease.
HLB HAMT is one of the leading payroll administrators in the UAE. Our experienced team of professionals offers accurate and timely payroll processing to our clients. Through HLB Global’s network of member firms, HLB HAMT undertakes multi-country payroll management to serve clients in more than 155 countries in the best possible way.
The process of payroll is a little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward. HLB HAMT provides payroll in UAE, Bahrain, Qatar, Saudi Arabia, Kuwait, and Oman.
To know more about our payroll process, click here
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
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