August 11, 2021
Manually consolidating data from POS and other systems wastes time and money. More importantly, it opens your organization up to errors and potential liability. Humans simply cannot manage complex data analyses and calculations with the accuracy and efficiency of an automated application.
The following sections explain how nearly every outdated, manual process your business still performs affects your bottom line.
When multiple record systems are used within an organization, consolidating and managing those records becomes time consuming and difficult. Employers must come up with a logical plan, assign rules, and apply those rules fairly to each individual and group within the organization. Some of the most challenging aspects of this process are ensuring objectivity, consistency, and transparency for each employee. To complicate matters, managers must accomplish all of this while remaining compliant with all state and federal regulations, or else risk legal ramifications.
From time clocks to POS systems to mobile devices, employee time punch data can be captured through any number of devices. Those data must then be manually exported and converted to secondary systems for calculations, allocation, and payment of earnings related to each employee’s time worked.
For most businesses, the POS system captures all sales transactions. However, managers are often responsible for determining individual sales within specified categories and calculating totals manually. They also must enter those results into third-party applications for the calculation of earnings including wages, commissions, service charges, and tips, and remain accountable for any errors in these processes.
The calculations required to accurately pay employees can be complex. This is especially true for large businesses and ones that disburse a variety of different earnings, such as hours worked, tips, service charges, and commissions or bonuses. When these calculations are done manually with spreadsheets and calculators, errors are almost inevitable.
Today’s dynamic workforce has quickly evolving needs. To cater to those needs, employers across the country have worked hard to provide immediate access to earnings outside of the outdated biweekly payment schedule. However, with these changes come new and complex problems, including figuring out how much each employee is owed after benefit withholdings and taxes, sometimes on a daily basis. If these calculations are done manually, employers quickly become overwhelmed.
Aside from the sheer work involved in managing expedited payments, employers also face the risk of accidental noncompliance with federal and state regulations as well as liability related to inaccuracies and errors in calculations. Any mistakes could open the door to significant financial losses and legal penalties.
The competition for qualified talent tops the list of challenges for many businesses in today’s tumultuous labor market. Research indicates that providing immediate, accurate, and secure access to earnings is one of the best ways to stay competitive and retain happy workers.
However, hospitality and sales organizations face the difficulty of keeping enough cash on hand to pay tips and commissions to employees on a frequent or even daily basis. As cash spending continues to decline, employers must find new safe and cost-effective ways of getting cash into their establishments.
To accurately process payroll, managers must first consolidate data from a variety of record systems. Typically, this is done through time consuming, error-prone, and manual processes that limit the employer’s ability to accurately record, reconcile, and report on any data that originated prior to the processing of their payroll.
Disparities and discrepancies between systems, combined with manual calculations and manipulation of data throughout the process, results in the loss of data integrity and an exposure to unnecessary errors and risks as employers submit withholdings and file their records with state and federal agencies.