It’s a given that the HR and Finance department looks after salary payments in any company. But if you run a business, more often than not, you’re pulled into looking over the business finances yourself.
Making salary payments is quite a complicated task. Most banks have several tedious processes in place. For example, companies are required to have at least 20 employees to create employee salary accounts with banks. And this, if simply put, is to get approval for the payroll structure.
But before we get into that, let’s take a look at the kind of challenges small businesses face while processing payroll.
The Challenges 😕
Let’s say, you need to make monthly salary payments. Be it for contractual or permanent employees, you will need to calculate payroll expenses and submit encrypted payroll sheets to the bank by the 20th of the month. Else, the salaries won’t be sent out on time.
This process includes adding new beneficiaries (new employees) and releasing full & final settlements (batch by batch ー depending on your company policies).
Adding to it is the chaos of submitting a signed and sealed copy of an indemnity clause by the business owner or the founder (YOU!) to the respective partner bank. Not to forget, you will need to submit a signed cheque equivalent to the total salary to be disbursed, along with many other documents.
Now imagine what would happen if you were travelling around this time? Well, the entire cycle would need to be completed prior to that!
Sounds exhausting, doesn’t it?
It gets a whole lot more complicated. There’s an added prerequisite of filling up 18-20 fields for every individual employee to process payroll.
Now think of your plight if you miss out on filling up even one field! You will be forced to repeat the entire drill. 🤯
Good news, though! There’s a way to speed things up and reduce your stress levels. You can put a stop to this at once with Open’s payout API feature.
How can Open simplify salary payouts for you?
|Paying salary the old way||Paying salary with Open|
|It’s a mandate to fill out 18-20 fields of details for each employee manually.||You just need to type in four fields – name, account number, IFSC code, and total amount to be paid. And then do a simple file upload on the dashboard.|
|Adding a new beneficiary requires a cooling period of 30 minutes – 24 hours (or more), based on the bank.||Add a new employee to the payroll instantly and process salary payments like a boss without any cooling period.|
|Mandatory to have an indemnity letter signed and sealed by the business owner or founder as approval on the transfer of salary payments.||No indemnity bond required. Get the simplified view of the various salary accounts and payments directly on the Open dashboard.|
|Required to share a signed cheque equivalent to the total salary to disburse payroll.||Process payouts quickly with e-cheques instead of processing cheques equivalent to salary.|
This is just a brief overview of everything you can accomplish with Open.
We’re not done just yet!
Why does your business need a reformed way of processing salary payments?
While most companies follow a typical one-month salary payout cycle, services like food delivery or taxi aggregators can integrate payout APIs to make salary payments in real-time. This helps track the status of the job and process payments on the go!
Sounds promising, doesn’t it?
The best part?
You can make salary payments via IMPS, NEFT, RTGS & UPI rather than getting worked up about sending out multiple paychecks at the last minute!
There you go.
We hope you’re now all set to say goodbye to payroll processing blues!
Stop worrying about making accounting errors or filing wrong data entries while sharing the payroll sheet with the bank. In fact, avoid stressing over making any kind of salary payouts altogether.
With a single click — record, track, and send payable salary to both permanent and temporary employees with ease.
All you have to do is turn the Open way to simplify salary payments like never before. 😇
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