While some businesses opt to handle running payroll functions in-house through manual bookkeeping or do-it-yourself payroll apps, small business owners have increasingly come to prefer the expertise of professional payroll providers.
Outsourcing can be a scary word. However before you scare off or judge the concept, it’s important that you know the benefits of payroll outsourcing. Here we take a closer look at a few of these and why they are important for businesses today.
FOCUS ON YOUR CORE BUSINESS
One of the common reasons companies look to outsource their payroll is to save time. When companies outsource other areas of HR, choosing this approach with payroll can be a major boost to productivity and efficiency because less time is spent working on payroll making sure compliance is met means more time boosting business growth.
ACCESS TO BETTER TECHNOLOGY
One of the most overlooked benefits of payroll outsourcing is gaining access to better technology. As technology is constantly evolving there are businesses that cannot afford to keep up with the times. Since payroll companies depend on technology to provide their services, they will no doubt make investments that your business cannot which means that you will always have access to the latest technology in the industry, and you won’t have to go through the painful process of upgrading yourself.
REDUCE COMPLIANCE RISKS
Every business carries a certain amount of risk. Markets, competition and government regulations all change very quickly. Outsourcing providers assume and manage this risk for your business and their expertise offers a much better idea at deciding how to avoid risk in their areas of expertise. Failure to comply with the various rules and regulations can lead to a large number of penalties not to mention the legal hassles involved.
AVOID FRAUD
Fraud by staff is a prevalent issue within many companies. By outsourcing, the entire process of handling payroll and accounting, accuracy and quality is ensured as service providers will be held accountable for any anomalies in the transactions.
SECURE DATA
Handling payrolls is a risky business and can be potentially dangerous if it land in the wrong hands which could lead to identity theft, embezzlement or tempering with personal records. It can be difficult to ensure the reliability of the safety and security of your payroll data on the company’s server or network always. Payroll outsourcing offers a safe and secure location for your confidential payroll data.
Saving time and money with a much more secured payroll process are the benefits are some compelling reasons anyone would want in their business. An outsourced solution will deliver peace of mind and free up time in your company, ultimately saving you money and reducing compliance risk—and helping you deliver the payroll experience your employees deserve
At Propay Partners we would be happy to look at your current payroll solutions, and help you determine whether outsourcing your payroll saves you time and money. We are on-hand to talk through all your payroll outsourcing questions.
