What is a GL and How Does it Link with Payroll
The ins and outs of payroll and how this can affect both HR and the wider company can be both complex and confusing, thankfully (as always…) we’re here to help! So, no more lengthy rabbit holes down the never-ending internet vacuum trying to find the answer, simply sit back and relax as we give you all the information you need to know.
Firstly, let’s start with a definition, GL stands for General Ledger and refers to a company’s organisational system that tracks all of the company’s financial transactions in one organised account. Matters normally recorded in the company’s general ledger include but isn’t limited to: assets, liabilities, expenses, income, revenue etc. This is important to keep both up to date and factually correct as it’s used to create the company’s financial statements at the end of the financial year.
How does it link with payroll?
So now you have a brief understanding of what GL is, you’re probably wondering how this links to payroll? Well within the general ledger the payroll also needs to be accounted for. Firstly, your company needs a payroll software, this will track and process all of the information regarding pay within your company such as hours worked, rates of pay, any deductions etc. Then your payroll needs, or in an ideal world should be, integrated to your general ledger. By integrating the two systems you’ll provide a seamless and efficient HR process which frees up your employee’s time to work on larger projects and allows the reduction in any human errors.
Once the two are integrated it allows the information from payroll to be posted straight onto the general ledger.
Benefits of integration
The benefits of having an integrated payroll and general ledger means that you remove the need to manually transfer the data between the two, therefore improving efficiency and reducing costs. In a small start-up business you might start out by handling this task in-house and manually, however as a company grows this can be one of the most time-consuming and complicated administrative tasks for any business. Using an outsourced system can significantly streamline the process. Not only will this save you time and money but by having a state-of-the-art system, you’ll also be able to concentrate on the outcomes more. Leaving you more time to really dig deep and understand the valuable insights you’ll be receiving.
How we can help
Not only is managing your payroll a never-ending task, then the need to integrate this with your general ledger is both time-consuming and complicated. You then need to consider that across the Middle East there are vastly differing criteria on how to manage both your payroll and general ledger, so it can become extra confusing if you have offices across the Middle East or internationally. Understanding your obligations and making sure you are both compliant and on time can be stressful.
By allowing a comprehensive payroll management service to step in and help, like ourselves, it will leave your business with one less headache to worry about. Here at OPS we also specialise in managing payrolls for companies in the Middle East, with experience in countries such as UAE, Qatar, Jordan, Oman, to name just a few. Meaning there really is no one better to make sure you’re following the thousands of compliance regulations to the T.
Let’s do this!
Now you fully understand what the GL (general ledger) is and how it links to your company’s payroll, as well as the complexity surrounding this, especially within the Middle East and the perplexing compliance laws around these practices. We’re sure you’re now thinking this is a mammoth task!
However, with our integrated payroll services, we can be sure to become an extra part of your team and take this burden off your shoulders. If you have any questions or would like to talk about this in more depth then feel free to reach out to our team and we’ll be more than happy to talk you through what might be the best solution for you and your business
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