Businesses are forever changing, whether it is through advances in technology or branching into new markets. However, one thing in business that will never change is the importance of paying your employees.
While many businesses still choose to manage their payroll internally through manual bookkeeping or payroll software, more and more companies are seeing the benefits of hiring professional payroll providers to ensure their employees are paid on time, which leaves businesses time to focus on what they do best.
Here are the top five reasons why you should consider outsourcing your payroll:
1. Increased Productivity
Regardless of the number of employees your company has, payroll consumes a lot of time in order for it to be done accurately. Outsourcing payroll will automatically free up time which can be devoted to more important business activities that contribute towards the success of your business.
When payroll is performed internally, there is always the worry that due to things such as illness and holidays, someone might not be there to perform their role, resulting in staff not being paid. Outsourcing takes this concern away. There will always be someone on hand to ensure payroll is completed accurately and on time.
2. Guaranteed Legal Compliance
When carrying out payroll in-house, it’s hard to find the time to keep up with ever-changing legislation and tax obligations. It’s part of a payroll provider’s job to keep up to date with this legislation and make changes when necessary. This will ensure filing deadlines are met and deposits are made on time and accurately.
It’s even harder for companies with offices in more than one country to manage payroll in-house as legislation and legal obligations change from country to country. However, external payroll providers are trained to know about country-specific legislation.
3. Reduced Costs
Hiring new staff to carry out in-house payroll or spending money on training existing staff can be very costly. It’s not only the cost of hiring or training staff you have to take into account. If they aren’t up to speed on all the ins and outs of government legislation and laws, mistakes can result in costly fines and penalties.
Leaving it to a payroll service will give you peace of mind and ensure that you aren’t making any expensive mistakes.
4. Improved Security Measures
Chances are that you don’t have the time and energy to constantly be supervising your business’ payroll for any unusual activity. The number of computer hackers is forever rising and this means that cyber-security is vital for payroll departments.
Having the right systems in place will lower your chances of being targeted and avoid any damage to your company’s reputation. Companies specializing in payroll have specialist technology that can detect and alert customers to any payroll fraud that may be taking place.
5. Consistency is Key
For companies operating in more than one country, utilizing one payroll provider to run the payroll across all regions ensures uniformity. It cuts out multiple providers and processes, making things as simple and stress free as possible.
About the Author
Alison Sellar is CEO of activpayroll, which she launched in 2001 in Aberdeen, North East Scotland. The company is now in its 14th year of successful business, servicing more than 1,000 customers and operating in over 120 countries around the globe.
Great article Alison