4 Key Benefits of Integrating Your Payroll and General Ledger
October 1, 2020
When it comes to your business’s financials, there is a lot for your team to account for. Managing AR and AP within the general ledger is an all-encompassing job in itself! However, there’s still the task of processing payroll wages and incorporating them into your ledger. Historically, payroll and the general ledger have been accounted for separately, leading to the time-consuming manual entry of payroll data and a lot of cross-referencing between the two. Fortunately, there are now programs that integrate payroll with your general ledger and can boost the efficiency of your organization with just a few clicks. DM Payroll Solutions explores the benefits of payroll-general ledger integrations and how they can help simplify your financials.
1) Eliminates Manual-Entry Errors
This is easily the most salient issue of having two separate systems; managing payroll expenses and your general ledger separately comes with the undesirable task of manually inputting these amounts. As with any manual task, there’s a large margin of human error that could throw off your entire general ledger with just one mistake. When you integrate payroll into the ledger, your team’s wages, taxes and more are accurately added with a few clicks.
2) Avoids Penalties
If manual entry errors cause your team to incorrectly file, report or pay payroll taxes, your business is looking at steep fines. Leveraging payroll software with a general ledger integration can help to reduce these expensive errors in one easy to use interface. If you’re lucky, your payroll company keeps up with changes in legislation or compliance regulations to always keep you up-to-date and free from errors.
3) Saves Time and Money
Automation between your payroll system and your general ledger can save your team hours upon hours of time. If you currently pay a third-party to consolidate the two, switching to an integrated solution would do the work for you, saving you money on what you would otherwise be paying your outsourced vendor.
4) Provides a Comprehensive Look at Your Business
When integrated into your general ledger, you have a streamlined look at payroll within the rest of your financials, giving you a big-picture look at your numbers for the month. You can drill down on wages by timeframe or department and even specify certain types of earnings and taxes. Overtime records can also be broken out so you can gain insights into how each department’s hours compare.
Your Answer to Payroll and General Ledger Integration
Instead of attempting to account for all of your payroll expenses manually, DM Payroll Solutions is here to help your team simplify its data. Our General Ledger Assistant saves you time by creating an import-ready file with unlimited mapping capabilities and all of your payroll journal entries, ranging from FICA taxes to wage expenses and more. Long gone are the days of manually transferring payroll data into your accounting software – let DM Payroll Solutions do the work for you. Contact us today to learn more about our payroll and general ledger integration.