HR administration is an essential part of any company, ensuring the legal clarity of employment relations and structured interactions between the employer and employees. However, in practice, the question often arises: who exactly should handle HR documentation? This issue is especially common in small and medium-sized businesses, where limited resources force role-combining, and HR responsibilities often fall into the accountant’s hands. In reality, this overlap creates many challenges.
The accountant’s area of responsibility
Many employers mistakenly believe that an accountant can simply “take over” HR tasks since they already work with salaries, taxes, and calculations. In fact, the accountant's role is limited to financial matters: calculating wages, paid leave, compensation, and other payments. All of these calculations depend on HR documentation.
If orders, applications, or timesheets contain errors, the accountant will not be able to perform their duties accurately. Therefore, the accountant relies on the quality of information provided by the HR department but is not responsible for preparing it.
If orders, applications, or timesheets contain errors, the accountant will not be able to perform their duties accurately. Therefore, the accountant relies on the quality of information provided by the HR department but is not responsible for preparing it.
The HR specialist’s area of responsibility
The HR specialist is responsible for preparing hiring, transfer, and termination documents, managing employee personnel files, monitoring contract and leave periods, and ensuring that all documents comply with labor legislation.
This is the person who sets up the HR structure, keeps up with legal changes, and communicates with employees regarding employment-related matters. While the accountant may assist with calculations, they should not handle HR administration.
This is the person who sets up the HR structure, keeps up with legal changes, and communicates with employees regarding employment-related matters. While the accountant may assist with calculations, they should not handle HR administration.
Why combining roles is not a good idea
If responsibilities are not clearly defined, the company risks facing various issues: from delayed HR orders and incorrect payroll calculations to audits and sanctions from regulatory authorities.
Additionally, employees who juggle multiple roles become overloaded, lose focus, and the quality of their core work declines.
As a result, it’s not only the documentation that suffers – but the entire personnel management process.
Additionally, employees who juggle multiple roles become overloaded, lose focus, and the quality of their core work declines.
As a result, it’s not only the documentation that suffers – but the entire personnel management process.
How to establish an effective system
Clearly dividing duties between HR and accounting is a step toward operational stability. Each person should handle responsibilities within their area of expertise.
This requires well-established communication between departments, the implementation of standardized templates, and well-defined procedures.
If needed, an external consultant can be brought in to help build the system and conduct an audit of current processes.
This requires well-established communication between departments, the implementation of standardized templates, and well-defined procedures.
If needed, an external consultant can be brought in to help build the system and conduct an audit of current processes.
How we can help
FlagMAN-D provides professional support in organizing HR administration. We help companies set up a clear interaction structure between accounting and HR, minimize risks, and ensure full compliance with labor law.
If you want your company’s processes to be transparent and manageable – contact us, and we’ll find a solution tailored to your business.