What is the difference between payroll, HR and bookkeeping?

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Bookkeeping, payroll and HR are important aspects of any businesses’ financial operations. While they may seem like separate services, this article will highlight how they are very much interconnected.

What are the differences between bookkeeping, payroll and HR services?

BOOKKEEPING

Bookkeeping is the task of maintaining records for accounting and other business purposes. Bookkeepers are responsible for handling incoming payments, recording transactions such as purchases or sales and entering data into a computerised system with auditing capabilities to help track finances. This leads to the production of accurate financial statements that reflect an organisation’s income and expenses.

PAYROLL

Payroll is the process of paying employees. Payroll involves regulating taxes and benefits and calculating how much to pay each employee for their work. It is crucial because it regulates aspects that affect every level in any organisation, from analysts working at corporate headquarters to casual staff. Everyone needs access to fair income; payroll provides employees with payment information regarding salary, tax and leave entitlements.

HR

A human resources department is responsible for conducting and implementing personnel policies on behalf of a business. An HR team may also include compliance officers, payroll managers, recruiters and other staff who offer support to the company in various ways, including regulating employee behaviours so they’re aligned with their employer’s goals. Without this critical branch of financial operations, many businesses would suffer due to increased turnover rates among dissatisfied workers.

Integrating payroll, HR and bookkeeping

Here’s an example of how bookkeeping, HR and payroll are interconnected: Payroll relates to paying your staff, so it is already undeniably linked to HR. If your business doesn’t have efficient payroll systems or pays staff incorrectly, this can cause employee dissatisfaction. And employee dissatisfaction can lead to high staff turnover, HR disputes, and poor company culture. In comparison, a company that prioritises payroll efficiency and accuracy offer no reason for employees to be dissatisfied with this area of the business.

At bluepath, we don’t just manage bookkeeping while ignoring other aspects of your financial operations. Instead, we adopt a comprehensive approach. We offer HR, payroll, bookkeeping, business advisory, and more.

Why should you outsource payroll, HR and bookkeeping?

The average business owner spends 15 hours a week on financial admin tasks. Outsourcing these important aspects of your financial operations can save you time and money. In addition, when completed by an expert, you’ll have peace of mind that everything is prepared accurately and is compliant. Moreover, professional bookkeeping, payroll and HR can offer important insight into your business operations and find innovative ways for improvement.

Connect with bluepath – your new outsourced finance department

If you’re looking for an expert team to assist with your bookkeeping or be your outsourced finance department, get in touch with our team today.

Contact bluepath on 0208 866 1608 or leave us a message.

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