Outsourcing the payroll functions of a company has always been a proven way to save time and money. However, the recent announcement of real-time pay-as-you-earn (PAYE) responsibilities and with auto enrolment seemingly close at-hand, the benefits of third-party payroll services are now even more pronounced. So, it proves wise to take a look at ten advantages that outsourcing this task will provide a growing company.
A Cost-Effective Solution
It is indeed true that multinational corporations have the revenue to successfully complete payroll requirements. However, small- to medium-sized businesses rarely have the in-house budgets to allocate to such a task. Some of these costs can directly compromise any realised profits and can entail:
- Employee hours (and possibly overtime)
- Logistics (printing, sending documents, etc)
Third-party providers can all but eliminate many of these and other such financial burdens.
Time and Effort
Let us never forget that one of the keys to success for any business is a continued focus on its core operations. Such responsibilities as product development, marketing and client engagement cannot be overlooked. This may occur should the complicated world of payroll be integrated into back-office operations. Outsourcing this metric to a third party will allow valuable time to be freed up; thus enabling a company to return its focus to internal development.
Initial and Ongoing Training Packages
Training a payroll staff can take a great deal of time. Furthermore, the money involved (software packages, updates, etc) will present a further financial burden. It should also be noted that there are many businesses that simply may not warrant a full-time payroll staff. Third-party providers offer a bespoke knowledge of all of the latest updates (obviously important for the recent real-time PAYE update) and their training is ongoing.
The switch to real-time reporting has left many businesses with more questions than answers. The world of payroll can be quite complicated. Outsourced payroll solutions offer a level of expertise that will all but eliminate any confusion. As this is their sole practice, their clients can rest assured that quality and precision are guaranteed.
Of particular importance of real-time PAYE is the fact that the time it takes to process a company’s payroll is now more critical than even before. Due to a bespoke and professional knowledge of even the most complicated of payroll platforms, outsourced solutions will enable all paperwork to completed on time and whenever necessary.
As the men and women who provide third-party services are truly experts in their field, a second-to-none accuracy can be enjoyed. This is often times not the case with traditional in-house services. The result of less-than-accurate solutions will lead to time lost in their rectification and perhaps even worse, financial penalties.
With outsourced services that specialise in the discrete field of payroll, companies can be assured that all tasks will be carried out in compliance with their wishes. There will be no “sick days” that will cause a delay (as is common in in-house operations) and more importantly, payroll providers will guarantee a timely completion of all paperwork that removes the burden from the company itself during busy times of the year.
Most third-party providers will work hand-in-hand with the company to offer the best package that suits their needs. This flexibility will not only guarantee a more efficient and targeted approach, but less money will be spent overall, as a customer can choose functionalities that directly reflect the unique requirements of the company itself. Should any changes be required or the system need to be enhanced, this can be accomplished quickly and easily.
With in-house operations, there is always the risk of theft, fire, information loss or data corruption. Another benefit that third-party solutions offer is an unheard-of level of security and redundancy. There are built-in templates that can detect fraud, tampering and any other form of manipulation. These amenities are often not enjoyed by traditional solutions found within an organisation.
Peace of Mind
Finally, these bespoke services will provide a company and its employees with a peace of mind in knowing that their financial interests are always the top priority. Once again, this will allow small- to medium-sized enterprises to refocus their efforts back into core operations. In this highly competitive marketplace, such solutions can make all of the difference in the world between success and failure.