Payroll errors cost the world’s biggest companies between £10m and £30m a year, according to a study by PwC.
The firm, which took findings from 193 multinational corporations (MNCs), said that mistakes reflected the increasingly international nature of modern workforces. This created various issues, particularly for payroll, as employees’ statuses often had to be tracked across different tax regimes.
PwC expects the problem to increase as 89% of respondent companies plan to increase the global mobility of their workforce, and are focusing more on short-term contracts, rather than traditional long-term secondments.
“Organisations are struggling with the increasing complexity and global nature of payroll,” Chris Watt, business leader of PwC’s payroll offering Payright, told business daily City AM. “As they increasingly look beyond domestic boundaries, the complexity of their payroll operations grows too.
“It’s crucial businesses have a payroll that’s not just fit for today, but is capable of dealing with the increased complexity and regulations coming in the future.”
PwC noted that employment taxes now account for 38% of global tax takings on average and 43% of government revenue in the UK.
Cash-flow based metrics now feature prominently alongside traditional revenue measures of business performance in the key figures or financial summary pages of any public company.
Far and away, the largest financial market on the planet is the foreign exchange currencies market, where on average individuals and organisations trade more than $5 trillion daily. In the FX world, the ability to master the market isn't considered a luxury for treasury officers–it's a necessity.
With the end of 2017 fast approaching, many finance professionals might be counting down the days with some degree of dread. Year End is just around the corner and with it comes the many long hours accountants will spend going over balance sheets and profit and loss accounts, investigating account irregularities and chasing sign offs.
Despite being behind the likes of Europe and China, the US payments industry is now rapidly advancing, said Anish Kapoor, CEO of AccessPay told GTNews in an exclusive interview.