Accounting and HR are both crucial to a business. Without accounting, you would have no idea how much money you have, who owes you money, and who paid too much in taxes. Without HR, your employees wouldn’t know what benefits they could receive or how the company’s policies work.
These two functions are both essential for business success. However, many SMB owners still see them as separate areas of expertise that don’t need to interact with each other until it comes time for payroll processing or tax filing.
If you want your business to grow beyond its current size by attracting new talent or expanding into new markets, then it’s essential to understand how these two teams can work together as one seamless unit instead of two separate ones competing for resources and attention from senior management.
Blending Elements
By integrating your financial systems with your HR processes, you can provide HR data directly into accounting systems, eliminating the need for manual entry of employee time sheets and other time-consuming administrative tasks.
HR and accounting are different components of a business that work together to ensure your company’s success. Each role has its own responsibilities and qualifications, but when put together, they can help you run a successful business.
HR is an integral part of any organization as it ensures employees are happy in their jobs so they can perform well. They also provide support for managers by managing recruitment, training programs, and employee relations issues such as grievance handling or performance management processes.
Accounting deals with financial information such as cash flow monitoring, budgeting, and forecasting budgets based on sales projections while still ensuring accurate reporting on income statements and balance sheets to meet regulatory requirements.
As your company grows, you must find ways to work together. The accounting team must have access to relevant information from the HR team in order to prepare budgets and forecasts. If you don’t share this kind of information, then it can create problems for both departments.
For example, if the salary structure does not match a market study done by your finance department or there is no budget for training because it falls outside of payroll. These issues can have serious implications on future projects or hiring strategies.
Creating Efficiencies
Everyone needs financial data. The accounting team relies on it to perform their tasks and make operational decisions. The HR team relies on it to perform their functions and make hiring/firing decisions.
Streamlining processes can reduce the time invested in completing time-sensitive accounting tasks, such as payroll processing, tax filing, and generating financial statements.
In both cases, there is possible automation to your payroll process that allows you to quickly provide employees with their paychecks. Automation also allows you to have an accurate record of all employee hours worked that can be easily tracked and recorded when preparing for tax filings or performing accounting audits.
Thanks to modern digital technology, you can now benefit from all the capabilities offered by large enterprises. The rise of cloud computing, which allows you to access software and data from anywhere, has not only made it easier for employees to work remotely but also enabled them to collaborate more effectively with other teams.
Rather than sending files back and forth via email or carrying physical documents on paper around the office, employees can simply share them in real time via a secure server that offers effortless file sharing and management tools. This makes it easier for accountants and HR staff members alike—along with everyone else involved in business operations—to access up-to-date information when they need it most.
Strategic Realignment
When you implement new policies surrounding the merging of data, analytics, and strategies between Accounting and HR, you realign two critical departments with your overall business goals. If you do not have the current resources to include an internal team in these decisions, it makes more sense to outsource the workload to a qualified and experienced accounting/HR firm.
Businesses need to be aware that they have to increase their profits while reducing their costs to survive in today’s marketplace. You cannot do this without investing in technology that allows you to streamline your workflows, reduce errors, and provide better customer service.
When you’re managing a company, you need to have a clear understanding of how accounting and HR work together. You can be sure that these two departments have very different roles and responsibilities. But they also share some common goals: both aim at helping your business grow by providing services that will make it more efficient.
At Adler Ezra & Associates, we specialize in accounting, payroll, and human resources. Our experts can offer you strategic growth plans based on real-time budgeting just as much as talent recruitment for filling in the gaps on your teams requiring help for project completion. With years of experience as a premium provider of such services, you can rely on our team to ensure your future business growth. Give us a call today to schedule a consultation.
