1. Payroll

   Payroll is crucial for accounting and HR to intersect and develop a symbiotic relationship. Without HR, there is no one to pay, and without accounting, no one will get paid. The finance team can analyze payroll figures to determine where pay gaps exist and when payment is not keeping up with the cost of living, among other things.

2. Trend Analysis

   Analyzing trends in things like rising healthcare costs are activities that both finance and HR teams should be doing on an ongoing basis. Collaborating on this kind of analysis can benefit both teams by informing their strategic decision-making without needlessly repeating work.

3. Budgeting

   Budgeting is one area that can benefit from trend analysis, but HR should not create their own budgets without including the finance team to get a broader perspective on the company-wide effect of increased spending in particular areas. Furthermore, when HR is considering making changes to company policies regarding things like vacation time, sick days, and work-from-home options, finance should always be included in the discussion to understand the effect on the company’s bottom line.

4. Insurance Applications

   Health insurance plan applications require confidential employee information and an analysis of what kind of benefits are going to be provided. While HR may be eager to seek out the most comprehensive insurance plans available to appeal to prospective and current employees, accounting can take a more measured approach to evaluate plan options by doing a cost-benefit analysis of each potential choice. Your accounting team will help keep premium costs in check without sacrificing coverage and can analyze whether it makes sense to switch plans if charges start to increase.

5. Audits

   A worker’s compensation audit requires payroll and employee records documentation. Accounting can provide the payroll documents and elaborate on anything that may need further explanation, while HR can get the employee-specific information while adhering to the proper confidentiality requirements. Working together, the audit can be handled efficiently and thoroughly to achieve the best outcome.

“Rather than human resources vs. accounting, aspiring HR managers should understand both areas. Successful HR professionals need to be financially intelligent in today's competitive global market,” suggests Trudy Brunot.