Summary
- Payroll is more about calculations of employee salaries, taxes, and record keeping.
- Accounting is complex and includes the functions of financial analysis, auditing, budgeting, forecasting, etc.
- An accounting and payroll diploma prepares students to enter the field and start their careers in a short time.
- Enrol today in Edison College’s Accounting and Payroll Administration Diploma and start your career in just 55 weeks.
What is Payroll?
The role of payroll is critical for the functioning of every organization. In short, no organization can sustain itself without an effective payroll system.
Some believe payroll is only about distribution of salaries. But this is not the true representation of this role.
Payroll takes care of hourly or weekly accounts, which also include calculating bonuses, overtime payments, statutory holidays, etc.
Canada is a big country, and its provinces and territories have different kinds and rates of taxes. This means payroll administrators need to comply with regional specifications in their roles.
Payroll people also take care of the Canada Pension Plan (CPP) and Employment Insurance (EI) and keep employee records up to date for the Canada Revenue Agency (CRA).
Payroll administrators make sure that all employees have accurate tax deductions and earnings. They also do year-end arrangements for taxes and audits and prepare T4 slips so that no employee faces difficulty in filing tax returns.
In short, payroll plays a central role in the day-to-day financial activities of the companies.
What is Accounting?
Accounting is a way more complex animal, and it is different than basic accounting in payroll.
Accountants perform multifaceted financial operations in the companies, such as analyzing financial transactions, annual budgeting, etc. In essence, they look after everything about the financial health of the company.
If payroll knows the cabin buttons and functions of the car, accounting people know the nitty-gritty of the engine and transmission of the car.
Accountants do budgeting as well. Let’s say a company wants to expand next year and it needs to hire new staff. It will be the responsibility of the accountants to prepare the ground for any such financial activity for the company.
Some of the functions of accounting and payroll also overlap with each other. But for that, accounting and payroll work together in all those areas.
For instance, both accounting and payroll collaborate with each other when it comes to financial record keeping and tax preparations.
Accounting people also advise top management of the company. They provide insights about risks to businesses, core operations, tax regulations, accounting procedures, auditing issues, etc.
It is because of this expertise that companies require top-notch accountants to protect the financial interests of the businesses.
What is an Accounting and Payroll Diploma?
A diploma in accounting and payroll helps students to start their jobs quickly. It is an ideal option for those who want to start earning with less investment of time and money.
You can complete an accounting and payroll diploma in a year or so. This is a significantly shorter time compared to a bachelor’s degree in accounting.
Moreover, there are several other options that you can choose after having some experience as an accounting and payroll administrator.
For instance, you can become a Chartered Professional Accountant (CPA), Certified Management Accountant (CMA), Certified General Accountant (CGA), Certified Payroll Manager (CPM)/Payroll Compliance Practitioner (PCP), etc.
If somebody wants to enroll in a degree program after getting a diploma, he can still take admission in any accounting and finance degree.
Conclusion
As you can see, there are some significant differences between accounting and payroll. But at the same time there are some similarities where these two fields converge. It is important to understand these differences before you take admission in any accounting and payroll diploma or degree program.
Enroll in Edison College’s Accounting and Payroll Administration Diploma
If this has you thinking about accounting as a career, Edison College’s Accounting and Payroll Administration Diploma is a 55-week path into bookkeeping, payroll, and financial administration roles — online across Canada or in-class in Victoria, BC.
This flexible Accounting and Payroll Administration Program lets you learn at your own pace with experienced instructors, regardless of your background—new graduate, career changer, or working professional looking to advance your credentials.
Enroll now to develop the skills and confidence needed to succeed in payroll and accounting, regardless of where you live in Canada!
Contact us today for more information on this program.
Read more industry-related blogs here.
Pictures by Freepik
