Is Connected Banking The Way Forward For Payroll Processing?
Many things in the corporate sector have changed with time. HR management systems, attendance, leave, and payroll management methods have changed significantly in the last decade.
After seeing changes in all these sectors, we cannot remain dependent on the traditional paying salaries to the employees.
No wonder companies have already adopted different software and applications for managing the HR, attendance, leave of the employees. The company uses these data at the time of calculating the Payroll.
But if you can do these tasks automatically and seamlessly, wouldn’t you like to process the Payroll using the same method? The answer will be “Yes”.
No doubt the majority of the companies have already started giving payments to the employee’s bank account.
But after using automated methods for managing all the operations of the HR department, no one would like to enter into the complex mode of processing employees’ salaries.
This complexity involves calculating compensation, generating payslips, and waiting in line to deposit wages in employees’ bank accounts.
As an organization, what can we do to make the payment process the easiest and the most convenient one?
The simple answer to this is to integrate banking with Payroll. Many service providers available in the market give one application for managing your HR and payroll operations.
What more will you be getting to process the Payroll with an application connected to the banking system?
You can now make payments directly to your employee’s bank account without any hassle. It is one of the major reasons companies are moving to connected banking to process payroll.
Let us understand how related banking works. Your company uses HR and payroll applications to manage the employee’s Attendance, Leave, and Payroll.
The same application will allow you to add the bank details of your employees. You will be able to send payments straight to their bank accounts without having the trouble to stand in the queue to deposit the cash.
Payroll processing is a time-consuming task. requiring HR executives to review payroll data, create salary accounts, process payroll, and generate payslips for employees.
Earlier, HR administrators had two separate systems. They use one for managing employees’ attendance and leave and the other for processing salaries to bank accounts.
As a result, they often find it difficult to manage two distinct systems without HR and Payroll software.
But now, getting the same application connected to banking for managing all these processes, HR can have more time in their bucket to spend on other core activities.
What other benefits can we get from connected banking?
1. Paperless money transfer
Having Payroll connected to the banking, your company can get rid of doing any paperwork associated with payroll processing.
You can pay salaries to your employees by transferring the amount online directly to their accounts, integrated into this payroll software.
All payroll calculations are completed automatically when we link banking with payroll software. These calculations are about deducting taxes, adding bonuses, or incorporating PF, ESI, and other components into the salary.
You need not spend time doing all these manually.
2. Data protection
Any manual method for verifying banking information, calculating wages, or disbursing salaries is vulnerable to theft.
Banking and payment information are extremely sensitive and must be kept secure within the firm. Any data leak might result in a significant loss for the individual or the company.
You won’t have to worry about data leaks if your payroll is connected to your bank. All you get with connected banking is data security and confidentiality.
3. Hassle-free process
The payroll procedure becomes increasingly stressful for the HR department.
It includes verification of banking details, calculations and updation of payroll data, and uploading all these details to the banking website.
Payroll processing for a large number of employees every month is a significant part of the business. And after going through all these processes, transferring the salary to the employee’s monthly account becomes a time-consuming operation.
The payroll process becomes seamless and fast when you link banking to HR and payroll software.
With India coming to the top of the list in the world for using UPI payments, stocking on cash payments will be challenging for companies with a good number of employees.
And if we can manage everything with just a few clicks, why not use the same method for controlling the Payroll with connected banking.