Every company requires some form of accounting software to manage their expenses and also to determine profitability. With the availability of accounting software, companies can benefit from automating their accounting systems as opposed to the traditional reliance of manual spreadsheets and paper systems. While many companies kept HR software and accounting software separate in the past, many companies are now starting to realize that there are benefits if they integrate the software programs together.
Helps to show trends
When it is possible to view human resources data and financial figures together on a regular basis, it will be easier to spot important trends and to study how changes affect figures as well. Additionally, managers can see how changes pertaining to labor constraints affect revenues and turnover as well as how turnover will impact hiring costs. Simply put, not only can you view company data but you can also track it and see how certain changes impact the company over time.
Shows the bigger picture
It will be easier to get a bigger picture of the company’s current health if the business owner is able to overcome the initial obstacles that prevent them from integrating the software. If the integration takes place, managers will be able to see the kind of effects that labor has over sales, the effects recruiting has over overhead expenses, how the turnover affects the overall bottom line as well as monitoring and managing payroll processes. When a company compares HR information and accounting figures together, they will be able to budget wisely and make decisions in a more profound way.
One solution does not fit all
While integrating HR software and accounting software has its own benefits, it may not be true for every company. For small companies, the costs of obtaining compatible or single solutions may overshadow the benefits of being able to view the data alongside each other. However, you do not need to lose heart yet as integrating the data for your company will make more sense and even provide a solution that is superior for great decision making.
May result in changed perspectives
Mixing HR software with accounting software can cause a change in perspective in some companies. When financial data is viewed side by side with HR information, it becomes easier to lose the human element. You will only see how what kind of effects A has over B as it relates to revenues. Unfortunately, this can also have adverse effects on the company’s corporate culture if they are not careful to maintain the human perspective while viewing the figures.
Pre-integrated solutions might be difficult to find
Many companies face a common challenge and that is to find a single or integrated software solution that has both accounting and HR management capabilities. Even if a company offers such software, they are often sold separately and may not even have the capabilities to be integrated. These issues will be most likely be ironed out in the near future, but it can currently pose problems for companies that want to manage and mix these aspects of their business together.