It is the process of involving audits or reviews to any process involving money to make sure that the process is risk – free. Several risks may be imposed on the organizations varying from outside fraud to internal fraud. Such organizations that has unprotected data or unsupervised employees or the employees having complete control over the funds of the organization are bound to fraudulent activities being performed on it.
The most critical process performed by the HR department is the payroll. It is because, it is very much essential to ensure that the process is risk free since the payroll has great access to the organization’s funds and sensitive data as well. It is mandatory that the pre – post payroll procedure for the documentation process should happen in a most accurate manner and should also occur at the various levels of the payroll team. Maker – checker balance is considered to be one of the effective ways to establish the safety measures for payroll, where “maker” is the person entering the payroll data whereas “checker” is a normal team member. The team member is responsible for evaluating the submitted entries that the “maker” enters in the system. This validation process is to rectify the system from the errors that occurred. Performing the validation will provide the necessary support for the audit references in the future.
The duties are to be segregated based on the department – wise to ensure the presence of various stakeholders who contributes their part in the validation of data or providing the transaction approval. The member of the management team is said to be responsible if he / she is capable of performing payroll check based on attendance, time and leave. The management team member is also responsible for checking the personal records to make sure that the payroll data does not have any fraudulent members enlisted with it. Cross verification is done based on the data collected from the various departments of the organization.
Though the process of cross – checking is very much helpful while performing the payroll activities, it is essential to have a HR payroll software to carry out the processes in a secured manner. The HR payroll software works by gathering information related to the organization such as the budget of the organization, organization goals and their needs. It also manages the people and automates their tasks and keeps track of their activities securely and secretively.
Whenever the daily cash flow is affected in an organization, payroll related fraud occurs. In order to prevent the payroll fraud from occurring, it is essential to scrutinize the process over a period of time.
Though the efforts taken are not minimalistic, errors are prone to occur in payroll which are both minor and major at times. To prevent the impact from being severe, the errors are to be investigated thoroughly. This is where the HR payroll software has its role play. The financial assets of any organization can be protected by thoroughly monitoring the cash flows of the organization.