How Small Businesses Streamline HR with Accounting Software

According to recent data, about 70% of businesses report encountering payroll issues, and nearly 82 million Americans have faced paycheck discrepancies at some point.

Managing HR and accounting functions can feel overwhelming, with multiple tasks competing for attention. From payroll mistakes to compliance issues and disconnected systems, the challenges can be overwhelming. If you're dealing with manual data entry, struggling with poorly integrated software, or trying to keep up with ever-changing tax regulations, you're not alone—many businesses are facing the same obstacles.

The right HR and accounting software can revolutionize the way you handle your workforce and finances. These solutions automate payroll, ensure compliance with tax and labor laws, simplify expense tracking, and seamlessly integrate employee data with financial reports—ultimately reducing administrative stress and minimizing costly errors.

With years of experience researching, testing, and writing about HR and accounting software, we've helped businesses find the tools that work. In this guide, we’ll sift through the noise to present the best options so that you can make a confident and informed choice.

How Accounting Software Can Boost HR Efficiency in Small Businesses

Small businesses and startups may not be able to afford a comprehensive HR system, software, or a dedicated team for managing employees and their needs. However, several factors can be automated through online accounting software. Here’s a list of some.

Accounting software frees your staff.

In small businesses and startups, employees often have to take on multiple job opportunities. Cloud-based accounting software gives your employees more free time to engage in innovative and productive activities. For instance, accounting software such as Giddh offers access to sales report generation to the sales staff. This team can generate these reports simply by entering a few details and doesn’t need to spend a lot of time creating charts or presentations. As a result, the sales staff can focus on following up on leads or creating new lead generation systems.

Keep your information safe.

A vital task in human resource management is to maintain the confidentiality of sensitive information and ensure that employees don’t disclose it to unauthorized parties. If you choose a reputable accounting software for businesses, you will also benefit from increased security. Since great online accounting software will have sensible user controls, not all staff can have access to all the information. When updates or changes are made on the cloud, notifications are sent only to the relevant staff.

Employee productivity

To err is human. And there’s no way to eliminate errors made by employees. But each error incurs a certain cost. Some common errors that can be addressed with the help of accounting software are:

– Financial reports generated on accounting software help you compare the actual financial situation.

– Discrepancies between timecards can be easily addressed on accounting software.

– Sales reports can be made accurate by generating them right on the accounting software, eliminating any chances of faulty sales performance analysis.

Employee performance

An additional point to the above is the ease of assessing employee performance. You can create a statistical overview of performance on an accounting software. Each department can have its performance report quantified under specific parameters, and this can be recorded in the software. It frees up the HR person, who can then channelize energy into training under-performing employees.

Payroll management

A payroll management head can be easily created on a cloud-based accounting software. It, like any other expense, does not require any additional software. With a bit of training, any staff member can use it while applying user controls, so not everyone has access to this information. You can also manage the following things on an accounting software –

– Employee time

– Delivering pay stubs

– Paying employees

Giddh: How It Can Streamline HR and Accounting

Giddh is a cloud-based accounting software designed for small businesses looking to streamline their financial and HR processes. While it doesn't offer comprehensive HR modules, such as leave and attendance management, it provides essential features that integrate seamlessly with HR tasks. Here's how Giddh can enhance your business operations:

Key Features of Giddh

• Payroll Management: Automate payroll calculations, generate pay stubs, and ensure timely payments, reducing manual errors and saving time.

• Invoicing & Multi-Currency Support: Create and send professional invoices, track payment statuses, and manage transactions in over 100 currencies with real-time exchange rates.

• Bank Reconciliation: Connect your bank accounts for seamless reconciliation, ensuring accurate financial records.

• Inventory Management: Maintain real-time inventory levels, manage multiple warehouses, and efficiently track stock movements.

• User Access & Security: Grant unlimited user access with customizable roles, set date range restrictions, and implement IP security to protect sensitive financial data.

• Audit Trail & Compliance: Maintain a detailed record of all transactions to enhance accountability and facilitate regulatory compliance.

• Cloud-Based Access: Access your financial data securely from any device, anywhere, with automatic updates and secure cloud storage.

Enhancing HR Efficiency and Employee Experience with Accounting Software

Integrating HR and accounting software can significantly enhance the efficiency of your HR department while simultaneously improving the overall employee experience. By automating key processes, streamlining tasks, and providing a user-friendly platform, businesses can ensure better performance, stronger compliance, and more engaged employees. Here's how HR and accounting software can make a difference:

Improving Efficiency Within the HR Team
Implementing integrated software helps streamline various HR tasks, reducing manual effort and freeing up HR professionals to focus on more strategic goals. With automation, the HR department can become more effective and organized.

• Automates repetitive tasks such as performance reviews and probation periods.

• Delegates self-service tasks like leave approvals and absence tracking to employees.

• Improves HR team productivity by reducing administrative workload.

• Enhances decision-making by ensuring HR professionals spend more time on value-added tasks.

Creating a Positive Employee Experience
When business accounting software supports HR functions, it not only simplifies HR processes but also boosts employee satisfaction. An intuitive and accessible system helps employees feel more connected to the company and its goals.

• Modernizes outdated HR processes with intuitive, easy-to-use features.

• Allows employees to manage tasks such as leave requests and access their data.

• Fosters a sense of empowerment by giving employees more control over their HR functions.

• Improves employee engagement through a forward-thinking and efficient system.

Making Better, Informed Decisions
Poor decision-making in HR can often lead to disorganization and a lack of proper tools. HR and accounting software help overcome this by providing data-driven insights, enabling better and quicker decisions.

• Tracks employee performance and progress in real-time.

• Provides accurate data for performance reviews and evaluations.

• Helps HR make timely, informed decisions on promotions, salary adjustments, and disciplinary actions.

• Improves accountability within HR and across the organization.

Automating Repetitive Tasks with Accounting Software
Automation is one of the most valuable features of HR and accounting software. By automating daily tasks, businesses can reduce errors, save time, and minimize operational costs, all while increasing overall productivity.

• Automates routine processes like invoicing, payroll, and financial reporting.

• Reduces time spent on manual tasks, freeing up staff for more strategic initiatives.

• Ensures accuracy by reducing human errors in financial calculations and reports.

• Enhances workflow efficiency by integrating various business functions into a single system.

8 Time-tested Benefits of Integrating HR Functions into Accounting Software

Integrating HR functions into real-time accounting software can offer numerous advantages for businesses. Here’s why many companies are making the switch:

Streamlined Processes

When HR and accounting functions are combined, there is a need for double data entry. Information such as payroll, benefits, and tax details is shared seamlessly between both departments, reducing the risk of errors and saving valuable time.

Improved Compliance

Keeping track of payroll taxes, labor laws, and benefits can be complicated. Integrating HR into accounting software helps automate compliance with tax laws and labor regulations, ensuring that businesses stay up-to-date with any changes.

Better Reporting and Analytics

Combining HR and accounting data into a single platform creates a unified source of truth. With a comprehensive overview of both workforce and financial data, companies can generate detailed reports and gain insights into their operations, enabling more informed decision-making.

Cost Efficiency

Reducing the need for separate software and manual work can lead to cost savings. By streamlining both HR and accounting functions into one platform, businesses can reduce operational costs associated with maintaining multiple systems.

Enhanced Data Security

Integrated systems provide a more secure environment for storing sensitive data. With HR and financial data stored in one place, companies can implement robust security measures to protect against unauthorized access, ensuring compliance with data protection regulations.

Simplified Payroll Processing

With HR and accounting functions integrated, payroll processing becomes easier. Employee hours, tax rates, and deductions are automatically updated, ensuring accurate and timely payroll processing while reducing payroll errors.

Improved Employee Experience

With HR functions such as leave requests, performance tracking, and payroll handled through the same system, employees benefit from a more cohesive and efficient experience. This integration can lead to better satisfaction and productivity.

Payment Run Feature with Accounting Software

The payment run feature in modern HR and accounting software, such as Giddh, can significantly streamline your business operations, saving time and improving efficiency. It enables your staff to easily access supplier invoices and quickly identify which accounts require payment. Whether you're running a small business or managing a large enterprise, accounting software can simplify your workforce management and payment processes.

• Quick access to supplier invoices for faster processing.

• Track payments and outstanding accounts efficiently.

• Affordable solutions like Giddh work well for small businesses.

• Cloud-based system offers flexibility and scalability for growing businesses.

If you’re interested in how Giddh can help manage your HR and accounting functions, contact us for more details.

Conclusion

Incorporating modern HR and accounting software, such as Giddh, into your business operations can significantly streamline processes, particularly in areas like payment runs. By automating the tracking of supplier invoices and simplifying payment management, businesses can save valuable time and reduce manual errors.

Whether you're running a small business or managing a large enterprise, integrating cloud-based accounting software can alleviate the pressure on your accounting department and improve overall workflow.

Giddh, with its affordable and comprehensive features, can help businesses of all sizes effectively manage both HR and accounting functions. If you’re interested in learning more about how Giddh can simplify your business operations, please don't hesitate to contact us for a personalized demo.

FAQ

1. Can accounting software handle HR tasks in small businesses?

Yes, modern HR and accounting software can efficiently manage HR tasks like payroll, expense tracking, and employee data management. For small businesses, software like Giddh integrates HR functionalities to simplify these processes, improving productivity and reducing errors.

2. How does accounting software improve HR efficiency?

HR and accounting software streamline repetitive tasks, such as payroll, leave management, and reporting, freeing up HR staff to focus on strategic activities. By automating these functions it reduces human error and enhances decision-making, ultimately boosting overall HR efficiency.

3. What HR functions can be managed through accounting software?

Accounting software can handle various HR functions, including:

• Payroll management
• Leave and absence tracking.
• Employee data management
• Benefits administration
• Financial reporting for HR departments

4. How does accounting software handle payroll processing?

HR and accounting software automates payroll processing by calculating wages, taxes, and deductions based on employee data. It generates pay stubs, manages tax filings, and ensures timely payments, making payroll easier and more accurate.

5. Which is the best accounting software to handle HR tasks?

For small businesses, Giddh is an excellent choice for handling both accounting and HR tasks. It integrates HR features such as payroll processing, leave management, and financial reporting into one platform, making it a cost-effective solution for small business owners.