Best Payroll Processing Practices For A Firm In Dubai, UAE

As accounting is important for all businesses in Dubai, UAE similarly the firms in UAE have to perform payroll processing activities to pay employees on time and keep all their records. It mainly includes keeping the track of the employee's wages or salary, making all kinds of deductions, management of benefits, and making the payment on time. But most of the time, many firms ignore the payroll processing activity and don't provide much priority to this process, which gradually leads to many challenges and mishaps like delays in making salary payments to its staff or improper management of the employee records. Inadequate payroll processing will lead to decrease in the morale of employees and employee turnover also.

There are many ways and practices through which a firm can maintain significant payroll processing activity. These practices are listed below.

Best practices for payroll processing in a firm in Dubai, UAE

• Outsourcing payroll activities:

Outsourcing the payroll services of a firm is one of the best options available for a firm to enhance the payroll activities and also reduce time and cost. Most of the firms in Dubai may carry out in-house payroll processing which will gradually increase the burden on the accountants who are already stuck in between to make good the accounts. So, in such a situation the accountants won't be able to focus on both responsibilities simultaneously. But outsourcing will provide the firm with an effective outcome and fewer errors in the payroll management and payment of the employees.

• Avoid delay and get the job done on time:

Even a short delay in the payment of the salaries and wages of the employees will result in a great problem. The employees will have a negative image of the organization, and they might also revolt against the firm. The employees may also get demotivated and lose the morale to perform their jobs responsibly, and this will degrade the overall working environment of the firm. So, ensure your firm keeps the deadline and makes the payment on time to the employees.

• Implement a well-integrated payroll system:

Sometimes the firms may have separate systems for recording the attendance of the employees and another for payroll management, it might have different software also. These different systems will increase the work for the accountants. Implementing a single system will simplify payroll processing and will reduce confusion in the organization. Having an interconnected system will simplify the data entry tasks and transfers of records from one department to another. 

• Adopt transparency and proper organization of documents:

Along with getting the work done on time maintaining transparency also plays a major role. All the reports, records, and documents must be accurate and cross-checked, and conveyed to the higher authorities to ensure their accuracy. And another fundamental task is to maintain an organized way of keeping the records, physically and electronically, and to reduce the huge paper work which could result in complexity. 

• Keep updating your payroll system:

Technology keeps on changing and also makes manual work easier, hence you must try to keep updating the payroll system to make the work much easier. It will be more efficient and less time-consuming with updated payroll software as it will make the payments on time and will provide accurate records including all the deductions and other adjustments. 

• Proper monitoring of time and attendance of the employees:

It is one of the major activities to be performed in payroll processing. The payment of salary and wage depends on the amount of time worked by them and their presence in the office or factory. If such a record isn't maintained then it will be troublesome to calculate the actual salary to be paid to the employees. So, it's always the best course of action to keep track of the time and attendance to calculate accurate wages and overtime wages.

How can CDA's assistance help you?

CDA is a well-known accounting and auditing firm in Dubai, UAE. CDA along with auditing and accounting services provides payroll services also with its professionalized team. We are always ready to render our services in the most personalized and stringent manner to our clientele. We always ensure that our client's expectation is met and their needs are fulfilled. CDA's team of experts is always dedicated to provide all the services to the clients whenever required. To know more about our services contact us soon.