One such way of cost cutting is to automate your payroll and employee attendance management system. A lot of companies, especially small scale business houses have a mainly run accounts department. This assumes that every task that is executed in this department requires a whole bunch of highly skilled accountants. Further, as a result, the company has to focus a lot of the resource planning and resource estimation for the payroll department.
However consider a different scenario, where the payroll department is automated. Now with this automation, most of the data entries happen on a real-time basis, without much manual intervention. For example, the attendance data gets recorded in the system as soon as the employee punch his card or presents fingerprint on the attendance recording machine. Few more examples like: –
• Automated calculation of TDS
• Audit of the employee earnings and deduction
• Creation of Form 16
• Income tax calculation based on various parameters defined by the Government
• Calculation of employee's salary based on the various parameters like Income tax, Provident fund, Employee welfare fund etc.
• Uploading TDS submissions in NSDL format
• Calculation and tracking of loan repayment, if applied through company
• Loan valuation report and interest calculation
The above-mentioned examples are some of the tasks that are performed by an accounts department on a regular basis which require a huge task force of accountants to do it, however, an automation with a payroll software system and an employee attendance management system, these Tasks can be done with just a matter of mouse clicks. The hefty tasks like the creation of Form 16, can be easily done by just retrieving the tax parameters defined by the employee and processing it through the software.
Manually where an accountant can accurately create only 5-10, Form 16 in an 8-hour shift, with the help of the payroll software, Form 16 for the whole company can be created in a day. This means that in a company of 80 employees, 10 accountants would have been required to complete the task in 1 day which means that these form 16 would have been equivalent to the worth of 10 accountant's one day salary which is a huge cost for any organization And still one can not ensure the accuracy of the final document.
According to a research, lot of companies, especially the small scale companies, feel that by switching to a payroll software system, they could not only save a lot of financial resources but could also focus more on their core business. This helped them a lot in improving their financial sheet and could report them with huge profits even after bearing all the taxes as well as expenses.
Here is the easiest and sure way to cut down the operating cost for any business is automation and automating the accounts department with payroll software system is stepping stone. Crunch in the number of accountants as well prevention in leakages of funds are primarily the two immediate benefits, which any company starts to enjoy as soon as one such software gets installed in their company.