HR accounting, HR records management

1. What is HR accounting and what is HR records management?

HR accounting and HR records management are important components of company and organization management, responsible for maintaining employee-related documentation and ensuring legal compliance. Although these terms are often used interchangeably, they have certain differences related to their purposes and processes.

HR Accounting

HR accounting refers to employee record-keeping, which includes payroll calculation, tax payments, and resolving other financial and legal matters. This process ensures that employee payments are made correctly and on time, in accordance with company regulations and the state's tax and labor legislation requirements.

The main functions of HR accounting are:

• Payroll calculation — including deductions for taxes and social contributions.
• Preparation of annual reports — regarding salaries, bonuses, and other payments.
• Document management — related to salaries, vacations, and sick leaves.
• Calculation and transfer of tax and social payments.
• Maintenance of payment documents — in accordance with legislative requirements.

HR Records Management

HR records management is a much broader concept that relates to all administrative and legal matters connected with employees. This area includes employee hiring, drafting employment contracts, dismissal, granting leave, as well as maintaining personal files.

The main components of HR records management are:

• Employee hiring — the process of onboarding new employees and preparing employment contracts.
• Maintaining employee personal files — all important documents of the employee, from personal data to employment orders.
• Management of vacations and sick leaves — tracking vacations and organizing payments.
• Amendment and termination of employment contracts — organizing processes of contract modifications, terminations, or dismissals.
• Various administrative matters — including organizing employee education and training.

Key Differences

• HR accounting focuses on financial transactions and reports related to employee payments, taxes, and other financial functions.
• HR records management is broader and encompasses labor law issues, document management processes, as well as administrative and executive matters concerning employees.

Both processes are essential for organizations to properly and adequately resolve all legal, financial, and documentary matters related to employees.

If you want to write more in depth about this in a blog, we can look at examples or compare these processes in real life.

2. What does the offered service include?

1. Documentation of employee hiring and dismissal.
2. Drafting of employment contracts.
3. Documentation of employment relations in accordance with legislation.
4. Preparation of job descriptions.
5. Payroll calculation.
6. Calculation of vacation settlements and benefits.
7. Preparation and submission of tax reports.

3. What opportunities does the service provide for your organization?

1. Avoid unnecessary fines by having documentation compliant with legislation.
2. Avoid conflict situations with employees regarding employment relations.
3. Document processing in accordance with labor legislation.

4. What advantages does the service provide for your organization?

1. you save time,
2. you protect yourself from possible technical and professional errors,
3. you eliminate information loss.