As an accounting major in college, I quickly learned all of the complicated parts of the accounting cycle. I discovered how to input the details of business transactions into a computerized accounting system. At the end of an accounting cycle, such as a month, I became experienced with calculating the revenue for the period. If you’re starting a new business, determining an accurate amount of revenue for each accounting cycle is crucial. You must know how much profit you’re making each accounting period in order to be successful in the long-term. On this blog, you will discover how an experienced accountant can help you keep track of your revenue.
Analyzing payroll information can be one of the best ways to measure employee performance. Here are some key analytics that you can use in your payroll.
Looking at Utilization
One thing that you can take away from payroll data is how much time employees spend on matters that are directly related to billable services. You can quickly see who is underperforming and overperforming in this area. Some departmental trends may also emerge that can affect where you devote your resources. For instance, departments that aren't producing a lot of revenue directly may not be the best areas to focus your payroll resources.
Analyzing Attendance
There are many things that you can learn from a simple analysis of your attendance records. For instance, you might find out that there are patterns in your absentee days, such as many sick days or vacations clustered towards the end of the year. This can point to a need to add rollover to your vacation policy. If employees aren't taking their time off, then you might need to address issues such as promoting healthier work/life balance in the company and making sure employees know it's ok to take their vacation days. If employees are abusing vacation policies, then this could point to low job satisfaction.
Turnover Rates
A thorough payroll analysis can also help you determine issues with turnover. You may be able to track these issues to a particular department, shift, or manager. Doing these analyses on a regular basis will give you a lot of valuable information on how to improve employee morale. It may be that you need to provide more incentives to third shift workers, or that you need to retrain a particular manager to help them improve their performance
As you can see, there are many useful tidbits of information that can come from a payroll stub. Since you're already doing payroll in your business anyway, it's a great source of data to tap into with little cost to your business. But getting great payroll data is dependent on having a very accurate and detailed payroll system. If your payroll needs to be beefed up in order to take advantage of these analytics, then hiring outside payroll services like Blueback Accounting is a great way to do this without needing to take on additional staff. With great data in hand, you can improve your management system by having as much information as possible.
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