Payroll closing: 5 tips for expediting!
Payroll closing is a crucial moment for a company's finances, right? Even though it is of great importance, we cannot deny that this process is tiring and takes up a lot of time every weekend. This situation worsens even more when the business goes well and the team begins to grow.
If you want to streamline this process and provide solutions that prevent your brand's personal department from being overwhelmed, continue with us. We prepared a post with unmissable tips so that the monthly closing is done with less difficulty and more convenience, after all, the Human Capital and Technology walk together in the business world!
What is payroll closing?
Those starting out in the business world may not have become familiar with the term yet, but Clicksign explains: it's time to calculate employee compensation - what includes the pro labore of the partners and owners of the company. Every month, in the last business days, those responsible for the payments add up the amounts to be transferred. And don't think of it as a simple account, there are always amounts that vary and that cannot be disregarded. This thorough process ensures that no one receives amounts other than what is due, maintaining the transparency and legality of a company's financial statements. Failures at that time may even end up generating labor lawsuits, so it's essential to find ways to optimize each stage and minimize confusion.
5 tips to make closing payroll more practical!
Some details and tools make all the difference when it comes time to organize the compensation of the entire team. See our 5 tactics!
1. Don't leave it to organize documents in the nick of time
One of the most stressful situations for this process is when the documentation, reports, and receipts are all disorganized. It ends up being difficult to find all the necessary information, ascertain the discounts and understand the particular situation of each employee. To avoid this, the best solution is to adhere to the use of digital documents. The files are organized, easy to access, and don't take up physical space — you'll no longer have problems losing relevant information. In addition, it is possible Save resources by stopping consuming so much paper. Management systems streamline the life of the entire team. Check out fundamental tips to optimize your document management!
2. Keep an eye on the electronic dot throughout the month
Repetitive operations end up wearing out any professional. So don't make the mistake of letting yourself, in the last week of the month, have to check each sheet in Electronic dot. This practice increases the chances of error, as it ends up tiring anyone. It also ends up taking up a lot of time, and it is not easy to carry out these processes all at once. A good strategy is to hold a conference at smaller intervals of time: it is less exhausting, more practical and does not burden those who are responsible. Having an integrated management system is also an excellent option, as it generates more accurate reports that optimize the counting of hours worked. This service ends up minimizing mismatches of information or mistakes that reflect a payment error.
3. Don't forget to segment payroll variants
Those responsible for the financial sector cannot say that the service is very calm, after all, a new factor appears every month that changes the amounts to be transferred. Have a list of all the variants that need to be calculated. Some examples of it are:
- vacation pay;
- portion of the 13th salary;
- maternity leave;
- missed days (and those that were paid);
- commission;
- overtime.
All of this needs to be “at the tip of the pen” so that you don't have any errors in the next step. Posting these cases in your reports as they come up will save you a lot of time at the end of the period - and avoid forgetting a specific situation.
4. Differentiate the gross salary from the net wage
This is the most important moment, since the calculation not only represents employee compensation. When we separated the net amount, we ended up understanding How much tax and fees will be paid for that period. Be aware of this part, it is a good practice to maintain the company's financial health. Although there is no way to avoid this work, it is much simpler with the reports created for the previous steps. Thus, It will ensure that there are no delays in transfers and that they don't have problems with unions or the labor courts. It is also essential that employees understand what this stage is about, as it avoids confusion because they end up believing that they are being harmed.
5. Use digital signatures for payslips
The closing of the payroll results, in addition to the payments in the accounts of each employee, the payroll. This document is the proof that specifies each amount, discount, or extra that person received. It is essential that all employees sign yours, showing that they are aware and in accordance with the salary received for the month. With the increase in remote work companies or digital ventures, it is impractical to maintain the traditional subscription model. The document management system that contributed to the beginning of this operation reappears as a protagonist in this stage too! Adhere to the use of digital signatures will facilitate various processes, including the subscription to the payroll. With an electronic document, each employee can use your encrypted mark to ensure that you received the salary. It won't even be necessary to leave the house! This option can help even if you have a business model that still has physical space, avoids the accumulation of paper and the waste of resources. Digital solutions are a way to make everyday procedures even more secure. What did you think of these tips for closing payroll? Clicksign has a blog filled with content about automation systems that can make a difference in the results of your business. Also check out the post about green entrepreneurship and get to know this business trend!
