Managing your payroll can be a significant and painstaking burden. Conducted every month, correct calculations take time and mistakes can result in tangible and reputational costs not to mention the emotive issues, a delayed payroll can bring across to your workforce.
So, what does outsourcing your payroll involve and how can it potentially bring benefits to your business?
What is payroll outsourcing?
Simply put, outsourcing involves taking an element of your business that you would otherwise handle in-house and allocating it to a reliable external provider.
This allows you a range of options when it comes to resolving long-standing issues for your business or undertaking key tasks that you may not have the time or experience to resolve.
While this may have proved risky in the past, recent advancements in team and networking technology make managing your outsourced projects quick and simple.
For many businesses, this enables them to cut back on staffing needs or allow their internal teams to work on other projects while also massively cutting back on internal workloads.
This makes outsourcing an attractive proposition for companies looking to make their payroll actions fault free, fully compliant and opens novel ways for their businesses to compete in an increasingly crowded market.
Why should I consider outsourcing my payroll?
Selecting an outsourced payroll provider can result in several significant benefits that carry a range of long-term rewards. These include, but are not limited to-
1. Maximum Accuracy:
Choosing a trained and validated payroll provider can ensure that your work is completed to the highest possible standard and that errors are eliminated.
The calculation of payroll is an exacting business, even for members of your team with a professional pedigree and a stellar background.
However, we are all human and dealing with mistakes can be very time-consuming and highly stressful for the individuals tasked with handling the process and for key members of the company at large.
A quality payroll provider will work to reduce errors and minimise issues. And, when problems do occur, they will be able to step-in and tackle problems. This will enable you to undertake filings with greater accuracy and massively reduce your risk profile for internal audits.
This also allows for reliable output, preventing issues around compliance and avoiding some of the significant fines that can accompany breaches or leaks.
2. An Optimised Approach
Choosing a seasoned provider enables you to not only secure the support you need but allows your payroll actions to be completed at a faster rate than your internal teams would be able to achieve.
All providers will also be aware of the importance of data security and work in full compliance with GDPR, legal, and other sector-specific requirements.
This allows you to enjoy peace of mind knowing that your provider is fully trained and able to take care of your payroll actions.
And if there is a need to capture additional information or insight, your provider will be able to accommodate your reporting needs – letting you stay abreast of key metrics and stats for your own internal planning.
3. High Efficiency
Outsourced payroll companies are experts in their field and will allow for quick monthly filings with speed without ever compromising on accuracy.
This allows you to offload even the most complex of filings without having to worry about their workload – ensuring that your company gets value for money every month.
Removing this responsibility can prove to be particularly helpful for smaller businesses who would otherwise struggle with internal training or the risk of staff turnover.
Finding an affordable, reliable provider allows you to counteract the threat of embodied knowledge loss and help reorganise your business to be more internally efficient.
4. Minimised Resource Expenditure
Completing your monthly payroll allocations takes time, effort, and energy.
Letting an external agency to carry out your payroll tasks allows your in-house teams to refocus their time on internal tasks that may otherwise go unfinished or be sub-par in order to get them across the line in time.
Fault reduction also means that, in the unlikely event of an issue, your teams will not have to be pulled away from other projects to course correct and address the issues.
This helps insulate your business and helps future proof it against problems that could otherwise be costly to resolve. The time and effort can then be internally reallocated – helping you refine your own daily practice.
5. Cost Effectiveness
One of the most essential reasons for outsourcing, maintaining a large payroll department can be expensive for any business.
As your company grows larger, so too does the complexity of managing your departments. This can also prove to be extremely costly for smaller businesses that are attempting to scale.
An external team also acts as a valuable source of insight or guidance when it comes to preparing for future legal or administrative changes.
Building a working relationship with your provider means that, once they have proven their value, they can potentially be used in other areas in your business.
This can help allow you to scale, tackle long-standing issues, or even open your work up to opportunities you may otherwise have been unaware of.
If you want to learn more about the role that outsourced payroll action can play in your business, our team at One Click Group is here to help. With many years’ experience dealing with clients from a range of backgrounds, we understand the importance of providing a service that fits how you work.
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Along with over 13 years experience in the contractor payroll industry, and after spending most of his working life as a financial advisor in the regulated financial services industry, Mike has garnered an extensive network of contacts in the recruitment industry, many of whom trust both him and the One Click Group to handle their accounting. Mike has also been a member of various industry bodies throughout the years, such as the British Institute of Recruiters, in order to champion best practices across the contractor payroll industry.