To run an r, there is an intricate web of departments that are involved for the proper functioning.
Although the success rates of any business cannot be pinpointed for a singular reason, integration has always played a major role.
However, two departments in particular are considered to be the backbone of the industry.
They are the HR who use the HR automation software for the efficiency of their work and the accountant departments keeping tabs on the financial liquidity.
In the end, both departments aim to pave the way for the betterment of the company. Also, learn about Managing Accounting Records by reading this article.
Thus, the integration of both departments can prove to be a convenience for the organizations.
So, stick till the end to understand the departments of Human Resources & Accountants and also learn how their integration can benefit the organization.
The Accounting Department
Ever wondered who keeps track of the money of the organizations while making a deal? The responsibility lies in the hands of the accountants, making their department among the most essential assets to run the companies.
They are responsible for making the preparations for the:
financial statements
Payroll
Managing transactions
Streamlining the methods at a reduced cost
The department is responsible for maintaining all the financial statements and data of the organization.
Apart from that, they are also responsible for the maintenance of a healthy relationship between the vendors.
One of the major roles of the Department of Accountancy is brainstorming ideas for reducing operating costs and getting the best results. The structure typically involves:
Financial Controller
Managers
Accountants
Chief Financial Officer (CFO)
Thus, with their responsibilities given, it is understood that they are like the backbone of the organizations.
Human Resource (HR) Department
To simply understand the role of human resources, you can define it as a division that deals with the following procedures:
Recruiting
Screening
Recruiting
Training the job applicants
This department is an essential component of any business, regardless of an organization’s size.
They aim to maximize the productivity of the employees or the workforce altogether in order to protect the company from any sort of issues that might arise within the workforce.
Unlike most of the departments, the HR department is considered to be an all-rounder one since they have a bit of everything. They consist of the following:
Recruiting coordinator
HR director
A HR specialist
Each of the roles has its own responsibilities which include keeping tabs on payroll processing, overseeing benefits, compensation, and several others.
Thus, you can say that the HR department is responsible for identifying and recruiting talented individuals. This way the company continues to flourish in the market and stay at the top of its game!
FUN FACT! The term “Human Resource” was coined by the American economist, John R.Commons, in his book The Distribution of Wealth, which was published in 1893!
Partnership Between Both Departments: Accounting and HR
Human resources and accounting are two key departments for any company. They each have their own jobs and responsibilities within an organization.
Where HR mainly focuses on the management and development of the company, accounting pretty much takes care of all the financial aspects within the company.
So, to make the organization a success, it is important that these two departments work hand-in-hand and focus on the bigger picture.
Here is how the HR and accounting department’s collaboration can help the company:
Payroll Processing
Payroll processing is one of the main functions of the collaboration between accounting and HR, which is really needed. This process requires many steps, from collecting all employee data to handing out paychecks as well as processing direct deposits.
Budgeting and Forecasting
A company cannot run without any financial backing and keeping a budget and predicting any expenses is a major part of running a successful company.
The collaboration of the two here helps ensure that the financial plans of the company align with the organization’s workforce needs and their overall plans for the future.
For example, here, HR can give the accounting department some insights like any changes in employee demographics or skill requirements. This can help the accounting plan and make better budgeting decisions.
Compliance and Reporting
This one is like an extension of payroll processing. Both payments need to make sure that the company complies with the local government workforce and payroll tax laws for a smoother workflow for the company.
From doing all the payroll tax filings, and managing the W2s to solving employee inquiries and disputes, all this comes under compliance and reporting.
Strategic Planning
Strategic planning is necessary if a company wants to achieve its long-term goals. A strategic chart presentation can effectively illustrate key milestones and strategies, providing a clear roadmap for success. The accounting and HR departments play a key role in this. They work together to determine what the future workforce requirements would be so that it aligns with the company’s financial goals.
Benefits Of The Collaboration Between HR And Accounting
Accounting and HR deal with two very different parts of a business. It can be hard to see how their collaboration would be beneficial for a company.
Here is a list of benefits the collaboration of HR and accounting can bring to a company:
Help attract good talent to the company by offering competitive salary packages.
They help reduce employee turnover by identifying employee motivation, improving employee retention, and much more.
You can make sure that the company is run in the most cost-effective way.
They Make sure that the employee’s work goals align with the company’s.
Final Inputs
The Human Resources (HR) and Accounting departments have their own distinct roles within the organizations. Despite their difference, their main focus lies on the management of the organization’s and employees’ records.
However, their collaboration is crucial for achieving the goals and efficient management of the organization’s data records.
With the beneficiaries of their integration in mind, consider having the best of both departments!
