Tracking labor activity for operational visibility, costing, productivity, and efficient transfer to Payroll is potentially a very valuable part of financial management. Every organization is responsible to meet payroll obligations. This is an area where policies and practices differ widely in industries, organizations, and systems. Many Clients tell us that ROI and compliance are important to them. We’ve found, however, that other clients run Payroll as a simple commodity!
BAS long-ago recognized this and has worked with clients and their consultants for years to streamline and automate the process of preparing, auditing, and moving cost-branded labor activity into Payroll – in many kinds of situations. Getting this to happen affects many things downstream among payroll and accounting processes and outcomes:
* Correct and complete labor history, as approved for pay
* Overtime and premium pay
* Compliance with pay policy
* Presentation of paystubs
* GL and other accounting data feeds
* Submittals to third-party payees
* “Vital signs” for Management
Payroll is a really good seat from which to monitor how well the organization is doing. Running Payroll very basically, and no formal HR, produces very basic outcomes – of relatively low value to the organization. This is a “pure cost” approach, and worse, cannot explain or manage large expense numbers due to employment on the P&L. Advanced, modern HRMS/HCM, when integrated, enables practice management. Adapting such practices can be phased in. Good workforce management and cost controls is working smart.
