If people are the heart of every business then it could be said that payroll is the blood. Everyone likes getting paid and in this economic climate, it is more important than ever that payroll is carried out on time and with the utmost accuracy.
It’s natural for business owners to want to be in control of their payroll but as an operational task, it can be extremely time-consuming. Nevertheless hiring a payroll manager can also be a costly affair as you will want to ensure that the person you take on is fully qualified for the role. Here are 4 reasons your business could benefit from outsourcing your payroll to the experts:
Payroll software systems can be costly and you will need to factor in the cost of employing someone to take care of payroll responsibilities. Labour costs of in-house payroll are not the only factor to consider; the price of postage, office space, stationery, printing and other costs may not seem like great expenses but can add up rapidly.
Running a cost/benefit analysis to estimate the overall costs incurred by your payroll each period compared to the fees charged by an outsourced payroll firm for a full payroll management service will help determine whether this is cost effective for your business.
2. Outsourcing Payroll could help to improve the accuracy of your payroll.
Payroll mistakes can be costly and laborious to correct. The simple fact is that if you are unfamiliar with payroll administration, mistakes may be more likely to occur. And keeping up with new regulations and legislation can be expensive and time consuming.
Outsourcing payroll to experts in the field who are experienced in dealing with all aspects of payroll management can help to ensure that mistakes are avoided. Moreover if any mistakes do occur, you can look to seek financial returns from the company, which you could not from your own payroll staff.
3. Outsourcing Payroll could help to boost the speed of your payroll processing.
No one likes a late payment. Many people rely on knowing exactly when their payday is to help them manage their budgets and outgoings and structure deadlines for mortgage, rent and other bills. Wages being paid late can cause distress for many employees, and upset employees can be counterproductive.
Finding an outside provider experienced in payroll requirements of all complexities can make sure payroll responsibilities are delivered in a timely fashion. Once again, should any late payments occur you may be able receive financial reimbursement.
4. Outsourcing payroll could offer you flexibility.
The payroll solutions which suit a large 100+ employee organisation may not be suitable for small-to-medium sized businesses. A good payroll service provider will be able to offer you a package to suit your needs and a cost to reflect this. Employing someone as part of your team comes with a great degree of responsibility, outsourcing payroll could offer much more flexibility than employing a member of staff to deal with payroll tasks.
You provider should be able to discuss exactly what you are looking for and offer you a package at a fixed fee so you know exactly how much you are going to be paying for the service each month and can budget accordingly. Accountancy firms may be able to take control of your payroll management too so all your finances are managed in one place – to ensure that the company you are dealing with are highly qualified you may wish to choose an organisation registered with the Institute of Chartered Accountants.
Outsourcing payroll may not be right for every business, but many small businesses or start-ups could benefit from the flexibility of such an option.
About the Author:
This post was written by John Hughes who writes for Juniper Accountancy, a professional Bristol Accounting firm. As chartered Bristol Accountants we can provide your business with a complete end to end service to take care of all your accounting and tax needs.
Photo Credit: By AshTR
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