WC CFO TheStrategicCFO#44 Online NZ Final - Flipbook - Page 1
Payroll emerges as a key business function during lockdown
There’s nothing
more destructive to a
company’s employee
engagement than not
paying staff accurately
or on time. In most
instances, payroll teams
did an amazing job across
a range of industries
to make sure their staff
were getting paid during
lockdown, but many
realised there was room
for improvement,
he says.
CFOMagazine.com.au
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Hidden costs
Optimising payroll
“The fact is that there are significant
costs to a business if they don’t get the
payroll function right,” he says. Keeping
track of employee movements on a daily
basis across a company is a complex
business function. “If an employee calls
in sick and they’re asked to fill out a
form next time they’re in the office, you
can end up with a bunch of forms that
you’ve got to then input into your payroll
system. You’re inevitably going to end up
with inaccuracies over time, particularly
during periods where teams are working
remotely,” Fodie says.
Companies looking to prepare for
the possibility of another pandemic
lockdown requiring staff to work from
home will need to consider how best
to optimise the payroll function so the
process is seamless every time. For
starters, make sure that payroll is in the
cloud and is secure. Ensure suppliers are
staying on top of changing legislation
and quickly implementing software
updates for no additional charge and as
soon as required or aligned to legislation
changes, along with useful supporting
advice. “There have been a number of
organisations over the years that have
been subject to significant payouts due to
ongoing issues, where calculations have
gone back six years. It’s not a good space
to be, so it’s really important that your
payroll calculations are accurate, with
starts with having the right system in
place,” Fodie says. “With Datacom, all
payroll details are held on our servers in
our secure data centres and is available
to our customers at any time for seven
years,” he says. Finance teams also
need to keep a clear eye on regulatory
changes in the payroll space, particularly
around government recommendations
around certification, Fodie adds.
“Meanwhile, if you’re not paying staff
properly, there’s a real liability risk
to your business. These inaccuracies
compound because of the number of
leave payments that are calculated as
averages over preceding periods. It’s
not a good space to be in, so it’s really
important that those calculations are
precise.”
