It is starting to become very common for Human Resources and Finance Departments to push and pull information from each other; however this isn’t always done efficiently or timely. There also seems to be an overlap of responsibilities, mainly with Payroll. Payroll is considered to be the responsibility of Finance and HR overlook the employee end of Payroll, some companies consider Payroll to be completely HR’s responsibility.
When there is lack of communication between departments, there can be many issues that can be a great cost to a company. An example; many companies don’t realise when their HR may hire a new employee and not inform the Finance Department right away, also the reverse, an employee may be fired, and again, the Finance Department are not informed. Miscommunication like this can lead to checks being issued to ex-employees.
Current issues between HR and Finance:
-Re-keying data into seperate systems
-Disparate solutions that aren't integrated
-Lack of communication
-Data transferred can often be outdated
Benefit of HR and Finance Integration:
-Information is readily available and accessible
-Takes away manual process of re-keying data
-No time is wasted waiting for data
-Smoother process of running the business
84% of businesses have disparate solutions that do not integrate. The integration of HR and Finance is on a steady increase. By utilizing the functions of integration, HR and Finance will be able to gain valuable insight many other business functions. Disregard of open communication between HR and Finance and the lack of information being shared, a business will struggle to compete in today’s market.
As companies grow and evolve so do the departments and people, the flow of data across the business, focusing on HR and Finance, needs to be smooth.
Do you want your business run more efficently? Could a HR and Finance integration solution benefit you?