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Why you need a regular business process and payroll audit review | Ascender Human Capital Management
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Why you need a regular business process and payroll audit review

Why you need a regular business process and payroll audit review

Business process reviews (BPR) are a vital part of an effective commercial operations. A regular BPR gives a clear summary of your entire business from a high and ground level view. When conducted properly, this is an excellent wide-angled perspective than any of a regular daily review of your processes.

If your business has been growing over the last 5-10 years, or it is encumbered by archaic systems of paperwork and spreadsheets, then your business is not taking advantage of the latest technology available to provide a simple and streamlined work process.

The fundamental of a BPR is to foster transparency and let your current operations improve on its existing practices with a well-defined, detailed set of workflows. A formal review may involve every aspect of your business or an identified department that seems to be the weak link. Alternatively, such reviews could reveal that your business is already conducting a logical and productive process workflow but it could be encouraging to confirm that from a trusted, impartial party conducting that BPR. It is also strategic to have your activity flow mapped out to ensure a proper on boarding and continuity workflow is in place as the business expands.

Additionally, payroll could be a potential compliance challenge for many HR and payroll professionals in any business. One of the ways to maintain a good degree of compliance is to start with a payroll audit.

A payroll audit may also be known as a compliance audit, is a practice that is conducted to ensure employer compliance to employee record and data management. Moreover, internal auditing is run to ensure that records are accurately and properly maintained, and to identify potential problem areas before they manifest in full. As no single system is perfect, a growing business that is adding more employees will eventually encounter the complexity of multiple payroll processes. Audits could provide an independent set of “eyes” to look over your business accounts to ensure that your payroll information is updated and correct. For example, regular internal audits allow you to verify the rate of pay on each employee’s pay distribution and also ensure that proper payments and employee contributions are being made.

While your business would ensure that accurate records are being kept, errors in accounting and inefficiencies with data management can and do occur. Conducting an audit provides an opportunity for reviewing, correcting or improving your compliance practices.

It is common practice to take on the service of a third-party to conduct an internal audit. This approach provides the peace of mind that the review is independently executed and results will be objective. Comprehensive audits place a huge demand on resources and the opportunity of businesses to save on time by sourcing a professional third-party help could benefit your operations greatly. Irrespective of whether your business hires a third-party to conduct a BPR and payroll audit, or if you choose to perform one yourself, scheduling regular, comprehensive reviews is essential to success. Compliance, accuracy, and efficiency could be improved and optimised with regular practice.

If you are considering outsourcing some or all of your payroll and review processes, feel free to contact us. Let Ascender help you in managing your BPR and payroll processes, and staying on top of compliance and regulatory requirements.

View your free BPR and Payroll Compliance is Top Business Priority information to help you make an informed decision, or fill up the enquiry form to receive a complimentary call.

All information in this article is for general information purposes only and is not intended to provide legal advice. You are responsible for obtaining your own legal advice on the contents of this article and the application of any changes that may impact upon you or your business. Ascender will not be liable for any damage or loss related to the accuracy, completeness or timeliness of the contents of this article and by accessing this content you agree that you solely assume any risk and liability of any actions you take in reliance upon the information contained in this article.

Download your free guide to learn more about Payroll Health Check.

All information in this article is for general information purposes only and is not intended to provide legal advice. You are responsible for obtaining your own legal advice on the contents of this article and the application of any changes that may impact upon you or your business. Ascender will not be liable for any damage or loss related to the accuracy, completeness or timeliness of the contents of this article and by accessing this content you agree that you solely assume any risk and liability of any actions you take in reliance upon the information contained in this article.