10 reasons to outsource your payroll.
Outsourcing payroll services
There are a number of reasons why outsourcing your payroll can be a cost effective option for you by optimising a payroll services company.
Firstly, it affords the opportunity to drive down operational costs and remove inefficiences within the payroll department. A decision to outsource any business function is a result of various internal and organisational pressures such as the lack of skilled personnel suitable to handle the task and to keep control of costs.
In the current economic climate companies face increasing pressure to keep up to date with new technologies, legislation and organisational change at the same time having to streamline some of their internal business functions and processes.
Why use an outsourcing payroll service?
- Cost – even before you consider outsourcing your payroll function you need to know what it is costing you to process in-house. How many hours are spent engaged in payroll activities? This must include the cost of labour, technology, office space, stationery, printing and postage. The more manual the process the more people that are required to maintain and administer the function.
- Productivity – payroll management is a time consuming activity by outsourcing this function employees can focus on productive activities focussed on the business. The more you automate the process the less people involved in the pay roll cycle.
- Accuracy – Payroll mistakes can result in angry and worried employees. A good payroll bureau is far less likely to make errors because it is their job to provide accurate payslips.
- Reliable service – Outsourcing to a bureau won’t be impacted by staff illness and holidays therefore the output speed and quality will be constant. Neither will you have to spend time helping new employees learn your payroll system.
- Speed – payroll bureau are designed to speed up the process of payroll printing and distribution as specialists they have technical resources enabling them to process payroll quickly and cope with on going changes within an organisation such as seasonal or temporary workers without having to upgrade systems.
- Expertise – a payroll bureau will have the expertise to provide the services you need irrespective of industry sector.
- Accountability – it becomes the payroll service providers responsibility to ensure your payslips are accurate, comply with HMRC and tax regulations and are distributed on time.
- Technology – a payroll provider will keep up to date with new technologies and software ensuring that you don’t need to make additional investment in-house as they invest so you benefit from increased efficiencies.
- Flexibility – by being able to meet your needs overtime as requirements change and your business expands.
- Security – working with a carefully selected payroll provider frees you from worry associated with possible abuse of the payroll function by employees and if it’s on time and accurate!
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How to manage the process of outsourcing your payroll function?
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