This article discusses the significance of automated payroll budgeting.
Ever wonder how your company handles payroll planning? I do. It is important to know how your organization budgets payroll because it is typically large part of your company’s master budget. Payroll can be a complicated process for employers. To get a better understanding, let’s define what payroll is. According to Investopedia, Payroll is the “sum total of all compensation a business must pay to its employees for a set period of time or on a given date. It is usually operated by the accounting department of a business. Payroll can also refer to the list of employees of a business and the amount of compensation due to each of them.” Payroll automation refers to the use of computers to produce paychecks and manage payments for an organization. Payroll automation is often integrated into the company’s enterprise resource planning (ERP) system that gives a thorough view of the finances of the company. This article is the fourth installment of our series on budgeting: Automated Payroll Budgeting.