Monitiring Computerized Payroll

Are you sure your payroll is correct? Can you be certain that your control mechanism can uncover material mistakes or prevent payments to fictitious employees?  

Computerized payroll control can help you monitor and verify the reasonableness of the salaries you pay and uncover problems in your payroll framework.

The information can already be found within your computer system. We will only help you extract it and turn it into knowledge that you can use.

What exactly is the problem?

Payroll costs are usually a significant part of an organization's overall expenses. However, the control mechanism for monitoring payroll costs is severely limited, when compared with other functions (purchasing, for example) in which controls are more stringent, even regarding small sums of money.

Very often, the control of the V.P. - Finance over the correctness of the payroll is limited to a comparison with the total payroll paid in the previous month, relying on the assumption that the payroll controller implements tighter controls regarding this matter. However, our experience shows that the controls of the payroll controller are also limited, since they are often based on a manual examination of a sampling of employees. Due to the complexity of the payroll and the volume of data involved, manual examinations are usually inefficient. Our experience also shows that, very often, the samples taken by the payroll controllers are insufficient and are not representative of the entire population.

How can payroll control be made more efficient?

All of the data pertaining to the payroll is located in your computer system (the payroll system). Therefore, the computer can also provide you with a "smart" control mechanism for monitoring the payroll. Periodically, the computer will generate control reports that provide details of data found to be deviant. Such data will be checked and, if errors are discovered, they can be dealt with as necessary.

What is the advantage of using the computer?

Implementing controls through the use of a computer allows the control process to encompass the entire work force and all payment parameters. Sample testing is no longer needed. A computerized examination process is quicker and more precise than a manual process; and consequently more cost efficient.

What deviances are uncovered?

The control reports we design for you include several deviance reports, such as: double payments of the same payroll component, payment of conflicting payroll components, payment of wages to fictitious employees, payment of wage hikes at unreasonable times, payment of payroll components in unreasonable amounts, etc.

How is the work carried out?

The work is carried out in stages:

• Defining the controls - we define the payroll control reports the company needs.
• Implementation of the controls - deviance reports are generated by you, through your regular payroll program. Deviances found are checked out by the responsible party within your organization.
• A meeting is held to to sum up the control process and conclusions are drawn for future control measures.

Is all this worth your while?

If you are an executive of a company employing hundreds of workers, then computerized payroll control is a tool that you cannot afford to be without.