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22 Jan 2013HR : Third Party Recons As Easy As Clicking a Mouse
Recent Gauteng Business News
Such changes to legislation tend to make complex payroll processes, such as these third party payments and reconciliations, even more difficult. Business owners in South Africa already have to contend with and keep track of the pay-as-you-earn (PAYE) tax, the Unemployment Insurance Fund (UIF), garnishee orders, retirement annuities, and so on.
âPayroll and especially third party payments are among the biggest headaches that companies of any size face,â says David Brown, Managing Director of Profile Integrate, a company that develops payroll payments systems and associated products. âWhether you employ ten people, a hundred, or a few thousand, with ever-changing laws to keep track of as well, payroll and particularly third-party payments and recons have become cumbersome, complicated and incredibly time consuming for all business owners.â
The problem, Brown says, is that many companies still process these systems manually, since they might not have money to invest in expensive software and pay the annual licensing fees. âThe information required by the third party is usually manually and inefficiently produced on spreadsheets, which is when human error and inaccuracies inevitably creep in. Manual processing amounts to too much work that has to be done in too little time. Oftentimes when third party statements are compared to payroll, the amounts do not correspond. Such errors cause delays and can subsequently also leave the finance and accounting departments with an increased workload.â
Brown says that it is time for companies to look beyond these traditional approaches and to the Internet. âAn Internet-based software solution, such as Profile Integrateâs Third Party payment and reconciliation tool, automates complex third party data and allows it to be processed accurately and quickly. It requires much less work, with payroll managers processing the data with just a few clicks of the mouse, freeing up the employees in the finance and accounting departments to do other work.â
Companies need not switch over to other payroll systems to be able to use Profile Integrateâs third party recon tool, says Brown. âThe other benefit of Profileâs third party system is that it works hand in hand with your companyâs current payroll software to make the monthly reconciliation of medical aid, pension fund, and any other electronic statements from a third party simple, fast and efficient. Data is recorded in real-time and automatically populated,â he explains.
Apart from saving time, it saves users money as well. âIt makes detailed comparisons between the third party statement and the payroll, both pre- and post-payroll run, thereby saving time and money. It also has the functionality to compare different databases, highlighting any variances in seconds, indicating what is on payroll and not on statement and vice versa â something which usually takes hours when the reconciliation process is being done manually. It ensures that all the data is 100%. âOne of our clients has informed us that since using the reconciliation function on Profile, the queries from both employees and third parties have reduced from 70% per month to no more than two.â
Another major benefit of Profile Integrateâs third party reconciliation tool is that it can be used from anywhere, since it is internet-based. âIt requires no software installations, licensing fees or support costs.â
Business News Sector Tags: HR|
