There are many aspects of running a business that can be complicated, time-consuming and distracting. Often these types of tasks are financial or managerial, one of the main ones being the processing of payroll. It can be easy to assume that payroll is a relatively straightforward process, however it can involve many different tasks. As a business, paying your staff properly and on time is one of the most important jobs you have. However, payroll will also involve pension contributions, taxation and a variety of legislation which must be met. This can be difficult enough with a handful of employees but many companies deal with hundreds of staff and you suddenly realise how the work can pile up.
Payroll processing is often carried out by dedicated members of staff, who also must be paid. Therefore, businesses can find themselves investing valuable time, money and energy into this process. With this in mind, many business owners are choosing to outsource their payroll. Outsourcing has become extremely popular in many aspects of business and payroll is no exception. Why are so many companies choosing to outsource payroll and what are the potential advantages?
What is Outsourcing
Outsourcing is a trend that is becoming more and more popular in modern business. Rather than completing a task in-house, a company may choose to employ the services of a third-party vendor. Obviously, choosing to outsource a task will incur a cost but many businesses choose this route because it can actually costs less than paying in-house staff. When it comes to outsourcing payroll, there are many options available, with businesses providing expert services, at an affordable price. So, what are the main benefits to outsourcing your payroll?
Cost
The cost of outsourcing may be too expensive for some businesses, particularly smaller companies. However, for many businesses, outsourcing the payroll process can help to save money. This makes sense when you consider that in-house employees will require a salary, benefits, pension etc. This is one of the main benefits of outsourcing in general as businesses pay for a specific service, instead of paying for an employee to complete that service. By cutting out the middleman, the company reduce costs.
Time
Completing payroll in-house will cost time, as well as money. This is particularly problematic for smaller businesses, who don’t have a dedicated employee for payroll. In these instances, it’s often the business owner or another member of staff who invests valuable time into this task. Fortunately, there are dedicated software packages which can make the process of payroll much easier and faster. However, it’s still going to require a substantial investment of time, especially when you consider how vast the process of payroll actually is. It’s not just salary, it’s also benefit schemes, pensions, bonuses, redundancy, expenses, just to name a few. Therefore, delegating payroll to a third-party can free up valuable time that can be invested in other aspects of the business.
Expertise
As we have established, payroll involves many different financial considerations and it can be a daunting task for those who are new to the process. There are also specific legal guidelines to adhere to, many of which involve tax. When a business is dealing with multiple employees, it can be easy to make a mistake with payroll but this can have serious consequences. One of the benefits of outsourcing is that you have peace of mind that the task is in safe hands. Companies that provide outsourced services are often specialists in their field, with many years of experience and expertise. Therefore, you can be rest assured that your payroll will be completed correctly, on time and in accordance with all current laws.
Outsourcing isn’t suited to every business but for many, it can be transformative. The experts at U-Deliver have a wealth of experience in providing comprehensive payroll services. If you’re looking to move your financial processes out of house, U-Deliver is the ideal solution.
