It’s time to put the global payroll in its place – in finance

Payroll has long been the neglected grandson of the corporate world, doing its job behind the scenes, unnoticed. Even his place in the company is uncertain. Does it belong to human resources or finance? Most companies divide it between the two departments.

As long as payroll was purely functional and its role was limited to making sure everyone in the company was paid on time and accurately, it didn’t really matter.

But times have changed. The same goes for the role of payroll. Payroll can be a huge boon for CFOs today, especially with a looming recession.

Business is more global than ever. Companies are increasingly turning to global payroll providers that offer automated platforms. These companies want the operational excellence that technology provides by automating payroll and consolidating data into a single stream – all incredibly valuable. But they end up getting even more.

The new technology made available by these global payroll providers has made payroll operations more efficient, providing tools to reduce costs, reduce risk, expand visibility and increase control. It also saves time. A PWC report indicates that finance teams can save 13% of their week by automating payroll. And we haven’t even mentioned the wealth of information hidden in your payroll data.

With all of these expanded features, Global Payroll is now fully owned by the finance department, and Global Payroll Analytics deserves a place at the table when making critical financial decisions.

Complete visibility in one click

In most companies, payroll accounts for 50-70% of total spend, yet CFOs of multinationals typically don’t know what they’re spending in real time, or even close to it.

With manual payroll, all data is spread across different countries and stored in different ways using different languages ​​and referring to different currencies. It’s a different challenge.

For CFOs and finance teams to calculate current payroll expenses, they would need to collect all the data by hand, standardize spreadsheets and other documents, and convert currencies to a single unit. By the time this was done, the numbers likely changed.

Additionally, if a global company wants to cut expenses due to a recession, it will be hard pressed to decide where to start, or whether the cuts it wants to make will have the biggest impact on the bottom line.

With automated global payroll, expense totals are available with the click of a button. When all global payroll data is brought together in a single view, a wealth of actionable business insights can be extracted. Expenses can be compared by year, by location or even by cost center. The variations are endless. The actions carried out by them? Business change.

Payroll data improves financial planning

Consolidated data also provides the basis for future planning and risk management – the best way to protect your business against recession and react in real time to changing market conditions. It reveals which of your sites brings the best return on investment and which types of employees are the most profitable. If there are fluctuations in the business throughout the year, analytics reveal which months required more spending, so the business can plan for the future.

More advanced systems that use powerful AI can predict expenses with great accuracy. It starts with superior visibility, which is only possible when all global data is consolidated into a single feed.

Control on a whole new level

An automated global payroll has built-in controls across the entire system. While many finance managers continue to cling to outdated systems that offer minimal controls, their colleagues at companies using automated global payroll have access to many advanced features:

Custom approval chain – All payroll data is only accessible to authorized persons, on the principle of minimum accessibility (“User Roles”). Accessibility can be controlled at any level, allowing some people to access but not edit data, while others can only see certain data related to a specific job they are doing.

Audit – An effective automated payroll platform can perform its own audit of payroll data to ensure accuracy, matching the numbers at the end of the process with what was expected at the start. Discrepancies are reported immediately and errors are eliminated before payroll is released, ensuring accurate payroll every time.

Payments –Sto me payroll companies will have their own payroll payment capabilities, allowing customers to track payments at every stage of the checkout process.

Privacy and Security – With payroll data containing a lot of sensitive information, payroll companies are required to maintain the highest level of security to protect the data and privacy of the many people who trust them.

Recognize global payroll as a strategic asset

In the digital age, global payroll is no longer the unwanted son-in-law. He is the unsung hero who brings a new level of value, efficiency and insight to business.

Its value is especially important during an economic downturn or recession. The only way for a CFO to exercise complete control over spending is to see comprehensive reports in real time.

Although global payroll data is a new world, it contains so much actionable information that it deserves a place at the finance decision-making table alongside technologies such as Salesforce for sales, NetSuite for management and HubSpot for marketing.

It’s only a matter of time before an automated global payroll provider joins the list – for accounting and scheduling.

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