Why HR and Finance need to plan together for the end of the tax year now

varsha sarkar

February 23, 2023

1:46 pm

You need events like the end of the tax year to go smoothly and efficiently no matter where you are in the process. Even while it could be challenging to focus on this one issue among the many others you are juggling, the best way to make sure that your company and employees benefit from this crucial process is by planning ahead. More than ever before, businesses must make sure their year-end tax planning is effective and efficient. The secret to this achievement is cross-functional collaboration.

There are several problems that finance and HR are now dealing with. Stress levels are rising as a result of rising prices for both enterprises and employees, which is having a negative impact on both parties’ well-being. You may have additional worries at a time when it’s already challenging to acquire the top people since employees may be considering leaving for positions that pay more.

Problems brought on by ineffective systems, whether internal or external, are the last thing you need when you are dealing with such a wide range of concerns.

The HR department creates and implements specific strategies to balance the costs of managing a workforce. They research hiring requirements for each position and market trends to make sure they meet industry standards. Compare the obligations and obligations that come with each category. HR plays a crucial role in a number of important areas, including performance enhancement, conflict resolution, training and development, and employee happiness. In the long run, this leads to business growth and improves how well and structurally an organisation operates.

Integration of the two and understanding the overlap

It is unavoidable and essential for the expansion and development of any company that the HR and Finance departments work together in harmony. Despite having a long-standing relationship, the two departments have struggled to collaborate in the previous few decades in order to achieve organisational objectives. Disparities in business philosophies are the fundamental cause of the conflict. While HR perceives the cost of recruiting resources as an investment that does not need to show a return on investment, finance is driven by profit and figures.

Despite their differences, HR and finance both strive for improved employee performance and profitability. Finance and HR both need to take into account the costs and advantages of onboarding new personnel. In a similar vein, HR must develop procedures that will ultimately result in profitability. According to America’s Back Office, a Chief Financial Officer spends 50% of their time on HR-related tasks.

The expenditures associated with hiring, recruiting, and onboarding new personnel are considerable and are among the most expensive expenses a business incurs each year. This makes the integration of HR and finance very clear and practical. Due to the different advantages and incentives that HR teams offer to their employees as well as themselves, labour expenses and benefits are continuing to rise within firms.

Conclusion

Companies with strong collaboration between finance and HR, according to Ernst & Young, benefit from:

  • Faster Growth: EBITDA (earnings before interest, tax, depreciation, and amortization) increased by more than 10% in 41% of cases.
  • Improved HR performance: 44% reported that employee engagement had significantly increased.
  • Increased Workforce Productivity: 43% reported a material increase in workforce productivity.
  • When HR and finance work together, all departments are kept informed, which promotes organisational success and reduces departmental compromises and inconsistencies.

varsha sarkar

February 23, 2023

1:46 pm

Related Articles

Cyber Defense Solutions: Fortifying Your Business Against Digital Threats

July 16, 2024

In today’s digital landscape, cyber threats are more sophisticated and pervasive than...

Read More

Open-TeleVision: VR-Type Control for Remote Robots

July 16, 2024

Revolutionizing Remote Robot Operation A groundbreaking new system called Open-TeleVision is set...

Read More

AWS India and iTNT Join Forces to Accelerate Gen AI for Public Sector

July 16, 2024

A New Era of Public Service with AI AWS India has announced...

Read More