With the right systems and processes in place, payroll can move from being an organisational cost centre to a strategic asset for the business.

This is according to HR and payroll solution experts Nicky Myburgh, Executive: HR & Payroll Solutions at BCX and Heman Kassan, HR & Payroll Solutions lead at BCX.

Kassan says: “From the CFO’s perspective, payroll need not be just another line item. With modern cloud-based payroll systems and strategic management, payroll can become a powerful asset.”

Myburgh says that while payroll is often the single largest expense in most organisations, it is also a potential goldmine of data. “When CFOs link payroll insights to workforce planning, cash-flow optimisation and compliance, payroll can shift from a back-office cost to a strategic advantage,” she says.

Myburgh notes that payroll data shows an organisation not just whom it employs, but also the real cost of the workforce, salaries, overtime, benefits, leave and other data. 

“This data, when analysed properly, can help CFOs and HR plan headcounts, forecast costs, and align workforce spend with the organisation’s growth strategy. It’s about turning raw numbers into foresight and making use of that data, and then making the right decisions for the organisation,” she says.

Myburgh and Kassan comment that using valuable payroll data strategically to better plan payroll runs and benefit disbursements, allowances and other expenses, enables CFOs to smooth out cash-flow cycles. 

“For example, they might stagger bonus payments or align benefit payouts with revenue inflows,” says Myburgh. “Cloud-based payroll systems offer the advantage of real-time visibility into payroll liabilities, so you can forecast accurately and avoid liquidity crunches.”

She adds that advanced payroll automation removes manual and repetitive tasks like reconciliations, tax calculations and compliance updates. For CFOs, that means reduced error rates, faster closes and more accurate reporting. More importantly, it lowers operating costs and frees finance teams to focus on higher-value analysis and financial impacts within the business.

“We have a number of case studies in which customers have achieved significant savings through payroll automation,” Myburgh says. “For example, a retail client reduced their payroll admin by around 70% after moving to a cloud-based payroll solution, and bringing in automation and processes to assist them in streamlining their business. That translated into measurable cost savings, but also gave their CFO near real-time labour cost reporting, allowing faster, data-driven workforce decisions.”

Another client avoided compliance penalties during a SARS update because the system automatically updated the legislation, saving them millions in potential fines, Myburgh adds. “It gives a company peace of mind knowing that legislative changes are automatically updated and they don’t have the headache of worrying about compliance or updating the legislation automatically.”

Myburgh and Kassan say CFOs should see payroll not just as a back-office function but as a strategic lever. “With the right systems, payroll delivers insights, cost savings and financial agility because you’d know exactly what your costs are. It’s a shift from compliance-driven to value-driven finance,” Myburgh says.

“Payroll isn’t just about paying people correctly, it’s about unlocking data, optimising cash flow and driving efficiencies that support the whole business,” Kassan concludes.

Nicky Myburgh and Heman Kassan discussed turning HR and payroll systems into a strategic asset in a recent BCX Connects podcast. To listen to the full podcast, go to https://www.bcx.co.za/bcx-connects.