Payroll input data does not originate in accounting. It is created at the HR manager’s desk: work schedules, time tracking, vacations, sick leave, bonuses, business trips. Yet accurate payroll is a key factor in trust between employee and employer.
From an HR management perspective, time tracking can sometimes seem like a tiny fragment of overall HR management and HR software selection criteria. In reality, however, this fragment is the main bottleneck affecting payroll quality. When selecting HR software, we always ask: what information does the accountant need to ensure payroll is fast and accurate every single time?
What do we see in practice?
- Rules must live in the system, not in people’s heads. Aggregated working time periods, night work, work on rest days and overtime coefficients must be clearly defined, systematically set up and configured in the software. If not, data must be entered manually, significantly increasing the risk of errors.
- Data moves, but not into the general ledger. If exports do not include components and dimensions (unit/project/object), allocation remains manual, meaning payroll processing takes considerably more time.
- Approvals are delayed. Clear agreement on when payroll for a specific period is closed (cut-off), a defined approval chain (manager → HR manager) and automated control reports all help.
- Audit trail is weak. Applying the four-eyes principle to payroll changes and ensuring a visible change log in the software significantly improves control.
How to assess the “payroll-friendliness” of HR software?
- Data model and rules – are working time types distinguishable (night work, work on public holidays, overtime, on-call time), and can fixed coefficients be applied for pay calculation?
- Workflows and cut-off – multi-level approvals, period locking. Is it possible to assign different access rights to different user groups?
- Integration – are different systems (e.g. payroll and HR software) integrated so that all relevant data (e.g. payroll components) moves seamlessly between them? Do the systems align with, or can they be adapted to, the accounting chart of accounts?
- Pre-validation – detection of errors such as overlapping schedules, missing pay types or unapproved events.
- Information security and GDPR – roles, access rights, personal data protection, audit trail.
- Usability – flexible data entry, clear error messages, software support.
Accountant’s minimum input (practical checklist)
- Working time by type: regular and night work, work during rest time and on public holidays, overtime (1.25 / 1.5), on-call time and call-outs.
- Events: vacations (balances and types), sick leave certificates (period + code), business trips (daily allowances, expenses).
- Payroll components and chart of accounts: clearly mapped codes, including fringe benefits and deductions.
- Dimensions (unit/object/project/location): mandatory, and included automatically when exporting data from HR software to accounting software.
- Accounting calendar: period, locking, pay date.
- Activity log: who approved or changed what, how and when.
- Reports: bank-compatible payment file, TSD data file, general ledger import, payslips.
How we provide this as a service and why companies choose us
Grant Thornton Baltic provides payroll services to companies with just a few employees as well as to those with hundreds. We adapt volume and workflows to each client’s specifics and involve tax, legal and business advisors when needed to deliver an integrated solution. This ensures timely and accurate payroll even when someone is on vacation or sick, and helps prevent data leaks and compliance risks. We work with secure payroll software and stay up to date with changes in labour and tax legislation (including keeping software configurations current). Clients highlight speed, accuracy, reliability and a personal approach as key reasons for long-term cooperation.
A short checklist for cooperation between accounting and HR software
- Working time types are distinguishable in the system and rules are configured in the software.
- Vacations and sick leave move with approvals from HR software to accounting → payroll and cut-off are clearly defined.
- Payroll components are mapped, and defining chart of accounts and dimensions is mandatory.
- Automatic quality checks are performed before data export.
- Payment files, TSD files and general ledger imports are generated automatically.
- The four-eyes principle applies to sensitive changes and the software includes an activity log.
Where to start if you are considering outsourcing payroll or simply updating processes?
- Process mapping: event → approvals → rules → export → general ledger / TSD.
- Payroll component catalogue: concise, unambiguous, aligned with management reporting.
- Rule configuration: night work, public holidays, overtime, aggregated working time periods, vacation pay methodology.
- Service level agreement and cut-off: clear deadlines for employees, managers and HR.
- Integrations: interfaces and data exports with payroll components and dimensions; payment and general ledger files.
- Parallel testing and training: one to two periods, error analysis, training for managers and HR staff.
What should we learn from this?
When payroll is done correctly, everything is boring—in the best possible way. That is exactly the kind of boredom worth aiming for: data flows seamlessly between systems, rules live in software, approvals happen on time and general ledger entries are created without manual work. Time tracking is not just a table of hours; it is payroll input that builds trust between employee and employer.
If you feel your company’s processes involve too many “buts” – last-minute approvals, repeated payments, weak audit trails, Excel “lifelines” used to fix errors – then it is time to take the next step. A small change in HR software or approval rhythm can mean a major win for the entire organisation: fewer errors, fewer disputes, better reports and more time for real work.
If you wish, we can take this journey together. We map the process, embed rules in the system, identify potential integrations and test together until payroll works correctly every time. If you want us to adapt our best practices to your company’s chart of accounts, HR software and reporting needs, let us know – we will turn the draft into a guideline tailored to your organisation.
Grant Thornton Baltic offers payroll process mapping, rule configuration, integration testing, parallel payroll testing and training to ensure payroll runs smoothly and correctly. Naturally, we also provide a full-service solution—from HR support to payslips.
