Payroll fraud is one of the scariest accounting frauds that is usually carried out by people who have full access to employee details in a company. According to a study, 11 percent of workplace frauds involve payroll that affects more than a quarter of businesses at some point and it is twice as likely in small companies. So, it is the duty of an employer to take necessary measures to avoid such frauds as they can actually cause long-lasting damage to any company, be it small or large.
With that being said, a company should be efficient enough to spot payroll frauds and more importantly, to prevent them in the first place. This is when online payroll software come into play! It allows a company to process payroll efficiently and helps them to prevent every possible payroll fraud. In the present age, finding such software is really easy. One just needs to search “online payroll software India” or “HRMS software India” and select the best out of all.
Let’s dig deeper and find out how online payroll software help a company to stop payroll frauds:
Restrict Access to Data
The first and foremost step every employer must take is limiting access to payroll data. This certainly reduces the risk of data misuse by any employee. Also, employers should rely on one of the best HRMS software in India. Employers can make settings in such software, thus enabling data access to only selected employees and supervisors. In addition to this, one should also establish a policy regarding password sharing to manage access restrictions.
Review Using Payroll Software
In most payroll fraud cases, it is usually found that a single person carries out all the important functions related to payroll including managing, and processing payroll. In such cases, the risk of payroll fraud gets very high as there is no one to review or ensure the payroll accuracy, thus the person is free to make any changes. Fortunately, an employer can resolve this challenge by segregating duties. That means an employer can appoint two people- one for managing payroll and another for reviewing the same.
Promote Direct Deposit
When it comes to direct deposit, there are zero chances of any paper checks to be stolen or altered. Furthermore, search “online payroll software India” and choose one of the best software that will indeed make payroll processing much easier and efficient. Such software also allow employees in a firm to set up direct deposit autonomously.
Carry Out Constant Payroll Audits
When HR managers perform payroll audits on a regular basis, it will help the company to flag unusual payroll activities including frequent bank account changes for direct deposit, time card changes, etc.
Constant payroll audits allow employers to find those “ghost” employees and every type of fraud that can affect the sustainability of a company. With the help of online payroll software, HR managers can efficiently perform these types of audits and reviews with just a few clicks, thus saving a large chunk of time.
There are times when multiple paychecks are deposited into a single bank account and this is an indication of payroll fraud. This issue can be easily resolved with the help of online payroll software. It allows HR managers to set alerts to notify when a single bank account is credited multiple times during payroll processing. This way, managers can not just spot fraud but also stop them right at the initial point.
Design an Approval Process
Designing an approval process for any time card changes or overtime can also help a company to stop fraud cases before it even occurs. Again, HRMS software allow managers to monitor frauds through automated and accurate timekeeping processes.
Consider the aforementioned points, search “online payroll software India” and purchase one of the best software for your organization to help your business to stay out of every possible payroll fraud.