What is included in personnel accounting
Personnel accounting is the recording of labor relations between the enterprise and employees. It includes: hiring and firing employees, maintaining personal files, timekeeping, accounting for vacations and sick leave, processing personnel changes (transfers, changes in position), generating personnel reports, and the document flow of personnel documents (orders, applications, agreements).
All of this is regulated by the Labor Code of Ukraine, resolutions of the Cabinet of Ministers, and instructions. Errors in personnel accounting can lead to fines during inspections.
Why personnel accounting cannot be done "haphazardly"
Labor Inspection Checks. In the case of an inspection, the absence of orders for hiring or their incorrect оформлення — fines starting from 30,000 UAH and above.
Labor disputes. If a terminated employee goes to court, the company must provide all personnel documents. If they are missing or contain errors, the court often sides with the employee.
Tax audits. Personnel documents are involved in the formation of payroll, so improper management also affects tax accounting.
Internal order. Without clear personnel accounting, employee turnover increases, and conflicts arise over unpaid vacations, days off, etc.
Priority processes for automation
If you have a limited budget for automation, start with these 4 areas. They address 80% of the pain.
Priority 1: Employee Accounting and Their Personal Data
A single database of all employees: full name, positions, rates, dates of hiring, contacts, passport details, tax identification number, payment details, and other information. Without this database, all other processes are impossible.
Quality automation allows filtering employees by various parameters (department, tenure, contract type), and viewing the change history for each one (when they were hired, transferred, received a promotion).
Priority 2: Acceptance and Release
Automation of the processing of orders for hiring and termination. Document templates, automatic filling of data from the employee's card, printing the order with one click.
A separate block - calculation upon termination. The system should automatically calculate compensation for unused vacation, final settlement, and generate all necessary documents.
This is the most common operation in personnel accounting — its automation saves hours each week.
Priority 3: Accounting for Working Hours and Vacations
Time tracking is the basis for calculating salaries. The accounting system should allow for the entry of time sheets by days and hours, taking into account different types of schedules (8-hour, reduced, overtime), and automatic generation of summaries.
Leave accounting: annual, additional, and educational. The system automatically calculates vacation days and reminds about mandatory annual leave (minimum of 24 days).
Accounting for sick leave: recording days of incapacity for work, calculation of payments (the first 5 days are covered by the employer, thereafter by the Social Insurance Fund).
Priority 4: Personnel Reporting
Standard reporting forms: report on average headcount, statistical reporting (1-PV, 4-PV), reports to the Pension Fund.
Quality automation generates these reports automatically — the HR specialist only checks and sends them through electronic services.
What can be automated later
The second circle of automation includes functions that are nice to have but can be done without at the start: employee evaluation and KPI management, training and development (LMS), management of bonuses and incentive programs, a self-service portal for employees, integration with recruiting, and complex analytics on HR metrics.
These modules make sense for companies with a staff of 50 or more people and an established foundation. They are usually not needed by small and medium-sized businesses.
How to choose a system for personnel accounting
Pay attention to: integration with payroll calculation in a unified database (otherwise, personnel data will have to be duplicated), compliance with Ukrainian legislation (forms, reports, nuances), availability of templates for all key documents, the possibility of flexible customization to the company's specifics, integration with electronic services for submitting reports.
In most cases, a separate "HR program" is not needed — personnel accounting is part of a comprehensive accounting system. It is both cheaper and more convenient.
Are you setting up personnel accounting at the enterprise?
SPOC offers comprehensive solutions for automating personnel accounting and payroll calculation. Leave a request — we will select the optimal package for you.