Accounting
What is Payroll Automation?
Payroll automation uses software to automatically calculate employee gross pay, deductions, taxes, and net pay, process payments, and generate payroll accounting entries — reducing manual calculation and compliance risk.
Explanation
Payroll is the largest expense for most businesses and one of the highest-stakes accounting processes — errors directly affect employees. Payroll automation handles calculation, compliance (tax withholding, statutory contributions), payment execution, and the production of payroll accounting entries for GL posting. From an accounting automation perspective, the integration between payroll systems and the GL is particularly important: payroll journals must correctly allocate costs by department, project, or cost center, and reconcile to the payroll register. Automating the extraction and posting of payroll data eliminates a significant manual reconciliation burden.
How Rima relates
Rima can help automate the accounting layer of payroll — extracting payroll reports and generating the correct GL journal entries for ERP posting.
Learn about accounting automationRelated Terms
General Ledger (GL)
The master record of all financial transactions in a business, organized by account.
Journal Entry
A record of a financial transaction in the accounting system, showing which accounts are debited and credited.
Cost Center
A department or unit that incurs costs but does not directly generate revenue.
Financial Reporting
The process of producing financial statements that communicate a company's financial performance.
See it in action
Rima automates the manual document workflows accounting teams spend hours on every week.