According to a survey, over 58% of SMEs admitted their inability to stay updated with HMRC’s ever-changing tax legislation and other tax laws. Moreover, more than 18% of firms planned to reduce the time taken over payroll processing through outsourcing it.
Are you contemplating outsourcing your payroll operations to focus on other growth-oriented tasks of your company? If so, here are the top seven benefits of outsourcing payroll in 2021. So, let’s dive straight into these top seven benefits that would greatly support your business in the years to come.
Outsourcing saves time
Payroll processing is a tedious and time-consuming task that doesn’t depend on your employee strength. This makes outsourcing a good resort whether you’re just starting up or are a well-established firm. Furthermore, it will leave you with ample time to focus on your other core competencies.
More time for accounting
If you are wondering about the relationship between accounting and payroll here, let me explain. A range of information is necessary for accounting purposes after each payroll period for the future. This information includes the salary credited to the employees, deductions and tax amounts.
By outsourcing, you can get all this done from a third party that will ultimately leave more time for accounting.
It’s a no-brainer that payroll processing is a complex and potentially risky business operation that should be taken care of by experts. Even with long time trusted employees, there is always a risk of identity theft, embezzlement of funds, or tampering with company files for self gains. Furthermore, there is also an evident risk when using in-house payroll software i.e., how safe and secure is payroll data on the company’s server or network?
This very real question can eat up any business owner’s energy and attention as well. Do you have the time and energy to closely govern your business’s payroll for time and rate abuses and other unethical activities?
That’s where outsourcing comes into the picture, that too with guaranteed data security.
Access to latest software and other technologies
Do you know that the majority of the payroll outsourcing firms utilize cloud-based platforms to manage your business data and gain better visibility and transparency in payroll processing along with robust data integrity? When you use outsourced payroll services, you get absolutely free access to these platforms, software and other technologies which you wouldn’t have imagined to have in-house.
Access to a team of experts
Most business owners and payroll related staff don’t have time to research and study constantly changing regulations, withholding rates, and government forms. By outsourcing payroll, a small business can take advantage of the expertise that was previously available only to big companies.
Avoid mistakes and tax penalties
HMRC states that 40% of small businesses pay an average penalty of £645 annually for reasons such as late or incorrect filings and payments. As the business grows, so does these penalties. Although payroll mistakes are inevitable, they’re painful and demotivating. Not reporting timely or accurately to the government post red flags to the tax authorities. Since you aren’t an expert in the challenging world of government tax regulations, let professionals look after your payroll operations.
Outsourcing is cost-effective
If your company has fewer than 30 employees, there’s a very good chance that you can save money by outsourcing your payroll operations. Figure out how many labour hours your employees are putting into payroll-related activities and calculate how much you’re spending and compare the amount to the plans offered by several payroll outsourcing services providers. You will be amazed!
When you consider the cost of an employee’s wages, then add in benefits, that can add up quickly. On the other hand, by outsourcing payroll, you won’t have to bear any such costs. This makes outsourcing a much cheaper option over in-house payroll processing.
These are the key benefits of outsourcing payroll services to more capable hands. To sum up, if you’re encountering less productivity and hindered profitability centered around time and costs, then outsourcing is for you!
If you’re looking for fertile payroll outsourcing services and have a range of questions regarding the same, let Outbooks answer them.
Let’s connect on +44 (0) 330 057 8597 Or [email protected]