Digital payroll and financial accounting designates the digitally organised execution of Payroll accounting and Financial accounting. Data, evidence, and documents are provided, processed, and comprehensibly documented digitally – from billing or booking to evaluations.
Basics
In practice, „digital“ primarily concerns the way information is captured, transmitted, stored, and processed. This can include the exchange of documents (e.g., receipts or personnel records), processing in software, and the provision of analyses.
The clear organisation of the process is important: which data is made available when, how is it assigned, how are approvals documented, and how are results provided.
Classification and compliance framework
Digital processes must continue to meet the requirements for a Proper bookkeeping achieve. For electronic records and digital processes, classification into the GoBD Relevant.
In the context of payroll, the protection of personal data also plays a central role, particularly in connection with Data Protection in Payroll Accounting. Digital processes should be designed so that access, roles, and storage paths are traceable and controllable.
Classification in the system
- Payroll accounting and External payroll accounting
- Financial accounting and External accounting
- Digital Accounting and Online accounting
- Digital document processing
- DATEV Company Online
- Digital archiving
- Process documentation
Digital payroll and financial accounting often connect several process chains: personnel and payroll processes (Lohn) as well as document, booking, and bank processes (FiBu). Documentation and archiving are also integral components.
Typical processes in practice
Payroll accounting
- Digital provision of billing-relevant data (e.g. changes in master data, time data)
- Digital exchange of documents (e.g. proof, certificates, filing in digital records)
- Billing runs and provision of results (e.g. bills, analyses)
Financial accounting
- Digital document provision and assignment (incoming/outgoing documents)
- Recording business transactions and accounting entries
- Reconciliation Bank transactions and control of the Payments
- Providing evaluations (e.g. BWA, SuSa, OPOS
Documentation and Archive
- Comprehensible filing and findability of receipts and documents
- Clear roles and access concepts
- Documented process description about Process documentation
Typical procedure
- Defining digital workflows (data sources, storage, responsibilities)
- Digital provision of documents and data (receipts, personnel/time data)
- Processing in payroll and accounting systems (settlement/booking)
- Reconciliation and plausibility checks (e.g. bank reconciliation, open item processing, settlement checks)
- Provision of results and analyses as well as archiving
Practical relevance
For smooth digital processes, the completeness and clear assignment of provided information are crucial. In practice, fixed responsibilities, unambiguous storage paths, and recurring routines (e.g., monthly processes, approvals, reconciliation of bank transactions) prove effective.
Typical sources of error
- Incomplete or late provision of receipts or accounting data
- Inconsistent filing, missing version control, or unclear responsibilities
- Missing reconciliation between receipts/bookings/bank movements or between database and statement
- Unclear access rights or lack of process documentation
FAQ
Is „digital“ synonymous with „online“?
Not necessarily. „Online“ primarily describes internet-based systems. „Digital“ generally describes processes that are organised and processed electronically.
Which glossary terms are closely related?
Typically are digital document processing, Online accounting, digital archiving, GoBD and in the context of wages Data Protection in Payroll Accounting.
Conclusion
Digital payroll and financial accounting describes digitally organised processes in payroll and financial accounting – with digital data exchange, system-supported processing, comprehensible documentation and digital analyses.
Brasser Accounting Solutions GmbH is a specialised accounting service provider and part of a corporate group with Quint GmbH (tax consultancy/auditing) and Service Place Årjäng AB (Swedish tax office). BAS exclusively performs services according to § 6 No. 3 and 4 StBerG and does not provide tax or legal advice.
