Accounting errors can lead to significant costs.
It goes without saying that the bottom line is one of the top priorities for any company. As companies continue looking for ways to cut costs, it's worth noting how costly errors can be, especially when it comes to accounting.
A recent article from from the Maryland Reporter details a significant statistic: their Department of Human Resources overspent its budget over the last four years — by $27 million. How does an HR department end up going so far over budget?
According to the article, an audit revealed that a number of things were amiss. Although it was not determined to be a case of fraudulent activity, incorrect adjustments had been made to accounting, in addition to bills that were paid without making sure that the work had actually been completed.
We frequently highlight on this blog all of the details that HR departments have to manage. From smaller departments to large state organizations, every HR department can benefit from an organized system that will help them keep track of the most important details, ensuring that accurate records are maintained.
When details are closely monitored and accounted for, it makes it less likely that errors will occur. Even if an error seems insignificant at first, they can add up over time, and as we see in the article, small problems can result in significant costs. Having a way to manage critical details is an important step to ensuring records are accurate.
With HR software solutions, automated systems can help manage each detail, reducing human error. Every company has its own unique needs. HR software solutions can find a way to meet those needs, helping your business operate more efficiently and save money.