Payroll is a critical function for every business. It’s also the single largest expense for most companies, accounting for 68% of the average company’s overhead1, and that’s before factoring for the hours of time it takes to run payroll on a regular basis. Wouldn’t it be nice if you and your dealership could save time and money while performing this costly and time-consuming process? A key technology trend is helping dealerships do just that with a single, simple action. Fully integrating your payroll solution with your DMS reduces does both in four specific ways.
1. Integrated Payroll Reduces Administrative Work
By pushing and pulling information from your DMS, integrated payroll systems create efficiencies for those tasked with running payroll. If you’re still working within multiple disconnected systems, consider how much time you’re spending setting up manual reports, entering duplicate data, and making manual reconciliations. And, as you’re probably painfully aware, if you make an error in one system, it can take a long time to discover, locate, and fix that mistake in each place that it occurs. Truly integrating your DMS with a full-featured payroll solution can help you eliminate spreadsheets and manual data re-entry, freeing you up to spend time on more important—and more profitable—activities.
2. Integrated Payroll Automatically Posts to the General Ledger
Of course, the payroll process is deeply intertwined with your dealership’s accounting systems and processes. And every payroll needs to be posted to the DMS general ledger. It’s one of the most important administrative tasks associated with payroll. Payrolls processed through fully integrated platforms post to the DMS General Ledger in real-time, with no additional manual steps required. Automatic payroll posting eliminates the need for spreadsheet uploads and/or manual journal entries common with other 3rd party payroll solutions.
3. Integrated Payroll Eliminates Disparate Systems
Of course, salaries and wages aren’t the only type of compensation within your dealership. Integrated human resource management systems go beyond payroll by helping you manage employee paid time off, benefits, performance reviews, job summaries, and much more. Integrated systems eliminate the need to track and report these items manually, or through separate, non-integrated solutions, saving you lots of time and freeing up resources for more important activities. With the right platform, you get one integrated platform and a single system of record for all human resource information.
4. Integrated Payroll Streamlines Payroll Complexity into One Process
Payroll is one of the most complex calculations performed by any business, and it’s even more complicated for dealerships. Factoring for sales commissions, bonuses, tech time, and employee receivables, running payroll within a dealership can be extremely difficult to understand and execute. Full-featured, integrated payroll solutions simplify the process by empowering you to review, validate, and reconcile these pay types as part of standard payroll processing, saving time and ensuring accuracy.
Your dealership spends a lot of money to pay its people. And the payroll process is one of the most important and time-consuming activities performed within your company. While you may not be able to do anything about the recurring cash outlay associated with paying your people, you can save time and money on the process of running payroll. By adopting a full-featured payroll management system that integrates with your DMS, you can reduce administrative work, eliminates disparate systems, and minimize complexity, saving you both time and money.
Want to learn more about Integrated Payroll and HR Management from Dealertrack DMS? Click here to see how your dealership could benefit.