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Beyond the beaten track

At some point, every SAP-using company will have to decide whether to continue using SAP's payroll solution or turn to an external solution instead.
Daniel Csillag, Exact Software
27 February 2014
[shutterstock:180233393, hin255]
This text has been automatically translated from German to English.

Both Options have their advantages and disadvantages: Integrated systems promise a low level of Interfaces-You already have experience with the service, know possible additional costs and your contact person.

However, international companies in particular often find that their full-suite solution of SAP is not comprehensive and small-scale enough to meet the diverse requirements of different countries. In addition, the SAPsolution is comparatively slow and quite time-consuming to maintain.

For cost and maintenance reasons alone, it is therefore advisable to use local payroll software.

This means that the user continues to SAP as a cross-national full version in order to have the data consolidated in one system, while the external charging solution consolidates the billing data with SAP linked.

This type of stand-alone solution offers users an attractive alternative, as it is no longer necessary to contact the payroll software every time a question arises. SAP-consultant must be booked. The prerequisite for smooth data exchange is a good Interfacewhich reliably transmits all payroll data for financial transactions to SAP hands over.

A question of resources

The question arises as to whether Payroll must be an internal issue at all or cannot be outsourced to an expert. Apart from the reduced effort and the higher Data security also speaks to the "Employees" for this:

Today, thanks to generational change and a shortage of skilled workers, it is increasingly difficult to find qualified Employees for the Payroll accounting to be found. On the one hand, this is due to the generational change, because with an average age of just under 50, more payroll accountants are retiring than the market can supply.

On the other hand, too few young people are choosing this profession because the dry and complex subject requires confidence in dealing with figures, formulas and legal regulations.

A shortage of skilled workers is therefore inevitable, both now and in the future. The risk potential in companies with only a single Employees for payroll accounting is high: if it fails, the company is suddenly left without a payroll accountant. At the same time, new laws complicate this specialist area massively year after year and require absolute specialist knowledge.

So it makes sense to hand over this time-consuming topic and free up resources for the Core business to create.

The cost-benefit balance is still often underestimated - after all, using a payroll service eliminates the need for ongoing training and IT administration for updates, and the issue of data protection is also placed in the hands of an expert.

But the trend is clear: the question is not so much whether they are integrated or not, but rather whether they are integrated:

"Do I do the payroll myself or do I have it done?"


Daniel Csillag, Exact Software

Daniel Csillag is Managing Director at Sage Personalsoftware und Service GmbH

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