Patently, the HR and Finance department looks after salary payments in any company. But if you run a business, more often you’re pulled into looking over the business finances yourself.
Most banks with several tedious processes in place, make salary payments quite a complicated task. For instance, a company is required to have at least 20 employees to create an employee bank account for salary payments. And this, simply put, is to get approval for the payroll structure.
But before we get into that, let’s take a look at the kind of challenges small businesses face while processing employee payroll.
Let’s say, you need to make monthly salary payments. Be it for contractual or permanent employees, you will need to calculate payroll expenses and submit encrypted payroll sheets to the bank by the 20th of the month. Else, the salaries won’t be sent out on time.
This process includes adding new beneficiaries (new employees) and releasing full & final settlements (batch by batch ー depending on your company policies).
Adding to it is the chaos of submitting a signed and sealed copy of an indemnity clause by the business owner or the founder (YOU!) to the respective partner bank. Not to forget, you will need to submit a signed cheque equivalent to the total salary to be disbursed, along with many other documents.
Now imagine what would happen if you were traveling around this time? Well, the entire cycle would need to be completed prior to that!
Sounds exhausting, doesn’t it?
It gets a lot more complicated. There’s an added prerequisite of filling up 18-20 fields to process every individual employee payroll.
Now think of your plight if you miss out on filling up even one field! You will be forced to repeat the entire drill.
Good news, though! There’s a way to speed things up and reduce your stress levels. You can put a stop to this at once with Open’s payout API feature.
How does Open’s payroll software simplify salary payments for you?
|Paying salary the old way
|Paying salary with Open
|It’s a mandate to fill out 18-20 fields of details for each employee manually.
|You just need to type in four fields – name, account number, IFSC code, and total amount to be paid. And then do a simple file upload on the dashboard.
|Adding a new beneficiary requires a cooling period from 30 minutes to 24 hours (or more), based on the bank policies.
|Add a new employee to the payroll system instantly and process salary disbursement without any cooling period.
|Mandatory to have an indemnity letter signed and sealed by the business owner or founder as approval on the transfer of salary payments.
|No indemnity bond required. Get the simplified view of the various salary accounts and payments directly on the Open dashboard.
|Required to share a signed cheque equivalent to the total salary to disburse payroll.
|Process payouts quickly with e-cheques instead of processing cheques equivalent to salary.
This is just a brief overview of everything you can accomplish with Open.
We’re not done just yet!
Why does your business need to rethink on how to pay salaries to employees?
While most companies follow a typical one-month salary payout cycle, services like food delivery or taxi aggregators can integrate payout APIs to make salary disbursement processes in real-time. This helps track the status of the job and process payments on the go!
Sounds promising, doesn’t it?
With Open’s payroll software you can enjoy the waves of smart payroll processing too. Whether you have 5-50 employees or more, automate salary payments with Open’s Payout APIs and make payouts within minutes.
The best part?
You can make salary payments via IMPS, NEFT, RTGS & UPI rather than sending out multiple pay-checks at the last minute!
There you go!
We hope you’re now all set to say goodbye to payroll processing blues!
Stop worrying about making accounting errors or filing wrong data entries while sharing the payroll sheet with the bank. In fact, avoid stressing over making any kind of salary payouts altogether.
With a single click — record, track, and send payable salary to both permanent and temporary employees with ease.
All you have to do is turn the Open way to simplify employee salary payments like never before. 😇
Related Articles –