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Finance & Budgeting

Budget Management Made Easy with Payroll and Payments Management Platforms

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featured image: Budget Management Made Easy with Payroll and Payments Management Platforms

All business owners know how important budgeting is to the success of any enterprise.

While there are a number of accounting software packages that are designed specifically to help small and medium business owners to set, manage and execute a budget, there are other tools available that also provide support when it comes to budgeting.

There are a number of benefits of using payroll and payment management platforms when paying staff and freelancers so that business owners are better able to control and run their business budget.

Keep control of your expenses

Using a cloud-based payroll platform makes it relatively simple and straightforward to monitor and control wage expenditure.

It provides real-time information relating to ongoing payroll costs, and allows businesses to be flexible and responsive to changing circumstances while still retaining budgetary control.

In particular, payroll software is especially helpful in managing and controlling a budget when you have workers in multiple locations, all of whom are being paid at different rates, in different currencies, and who are entitled to different benefits and deductions.

For any business looking to manage payroll as efficiently and cost-effectively as possible, cloud-based payroll software is an ideal solution, as it gives you an accurate, up-to-date picture of what expenses are being incurred at any given moment in time.

Managing cash flow

In order to meet budgetary goals, particularly with regard to being able to pay staff and freelancers on time, it is important to have a clear overview of an enterprise’s cash flow.

A cloud-based payroll platform is an important tool in managing what can otherwise be a time-consuming and potentially costly process. This is especially the case if you operate in multiple locations and under different employment laws, as this can make it significantly more difficult to keep on top of the wage bill.

With a real-time payroll and payments platform, however, it is straightforward to manage the payments process. It gives you easy access to relevant data, letting you monitor your costs closely at all times and keep your cash flow under control. For example, the global payroll company Papaya Global, offers a unique payroll software that is united with payments.

Eliminate fraud and errors

A key benefit of automated cloud based payroll software is that it can help to reduce instances of payroll fraud, and eliminate the potential for human error.

Payroll fraud can take a variety of forms. For instance, falsified timesheets, where a worker claims to have worked more hours than they actually did, or when workers clock each other in so that they chalk up more hours, are common forms of this type of fraud.

It can also, unfortunately, be the case that your own payroll team is a party to fraud, for instance in cases where they temporarily change a worker’s rate of pay, add fake employees to the payroll, or keep workers on the payroll after they have left the company and then pocketing the salary.

It can also be the case that simple data entry or bookkeeping errors are made by payroll staff, which are not fraudulent but can nevertheless be costly.

Payroll software, however, automates many of the processes associated with payments, which is not only more efficient but also helps to eliminate the potential for human errors, while also making it more difficult for fraudulent payroll transactions such as those described above to be carried out.

Transparent processes

It is important that a workforce’s personal data is protected, but at the same time it also has to be accessible so that workers can see what personal and financial information a company holds, and they are able to access that information as and when they require.

A cloud-based payroll and payments platform will provide workers with an easy to access portal that makes it straightforward for them to remotely access their payslips, taxes, and other deductions, details of paid time off, and more.

Likewise, management teams need to be able to access payroll data at any time, in order to monitor expenditures and track payments. Doing so also enables HR and payroll teams to ensure they are acting in compliance with all relevant employment legislation.

Being able to stay on top of this is especially important when engaging workers across multiple jurisdictions at once. Automated payroll software facilitates this, and therefore provides greater all round transparency.

Make better business decisions

Using a payroll and payments management platform means that business operators have real time access to an enterprise’s finances, particularly employment costs, so that managers are better able to make informed business decisions.

In particular, for organizations operating in multiple locations, there can be many different employment regulations to follow, and these can change quite often and quite significantly, leaving you at risk of non-compliance.

However, when you have easy access to the sort of detailed, up-to-date information regarding staff costs that payroll software provides, managers are better able to track the costs associated with employment.

For example, the data helps you decide if hiring full-time staff or freelancers is more cost-effective. You can weigh the pros and cons of each option based on your current expenses and needs.

Overall benefits

Overall, there are significant gains to be made in terms of increased efficiencies and reduced costs when using a payroll and payments management platform.

Business owners are fully informed about staff costs and therefore better placed to make decisions as to the nature of the workforce, while an automated system can also help to eliminate fraud and human error.

Likewise, managing cash flow becomes easier when you have a real-time picture of wage costs, while the transparency cloud-based payroll software delivers is helpful to both managers and workers alike.

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