8 Benefits Of Outsourcing Your Payroll Services
Are you working harder or smarter?
Thanks to technology and the ever-evolving business environment, it is easier than ever to outsource business functions for better service delivery at optimal output.
Many companies today outsource their payroll services to freelance companies, which allows them to focus on the crucial bits of running the business.
Among other reasons, outsourcing payroll services gives you more time to focus even more, as well as improve your business.
Here are some of the reasons and the benefits of outsourcing your organisation’s payroll services.
#1 - It saves you time
Companies spend dozens of hours training their staff on how to use internal payroll systems among related services.
Data entry also takes a considerable chunk of the employee’s time, as well. Outsourcing payroll services, however eliminates the time and effort required to enter data, as well as train staff and worrying about regulations and compliance.
Cladding installer Daniel Cerminara agrees and explains “anything that takes away from your core service as a business is hurting your productivity and your ability to generate revenue. Through using outsourced payroll systems you can create more time and remove the risk of something going wrong through your inexperience. It’s a win-win!”
In addition to this, the HR won’t have to spend lots of time updating benefits, leave, and other entitlements. Much of the time that would have otherwise been spent entering and updating payroll and HR systems can be utilised elsewhere, hence improved productivity. You also get to have a professional look into your books.
#2 - It saves you money
It costs money to hire full-time in-house employees for accounting and payroll services alone. The organisation also has to stock up the required infrastructure, programs, and other costly IT infrastructure for the employees.
Most of the organisations with thousands of employees are switching from customised software solutions to cloud-based services. These companies do this to help bring down the cost of hiring and retaining staff specialised to handle such services and softwares.
Payroll service providers, however, help maintain, manage and improve the platforms they have in place to ensure all their customers get the best service.
In addition to this, these systems are monitored by teams of specialised process managers and engineers who work hard to ensure you get the best service possible. Your company will be saving money from outsourcing these services.
#3 - Ability to focus on core business processes
Almost every business today has outsourced at least one critical function. Some of the most commonly outsourced services include:
- email services
- website hosting
- sales and inventory management
- accounting software
Outsourcing some of the critical functions in the business, and especially payroll services allows you to focus on the most crucial part of running the business.
Hypnotherapy certifier’s AOTH explain that “often times, we hold onto responsibility thinking no one could understand the way we process information and act. This often occurs in the subconscious. However, refusing to release some form of control can hurt your business. When you outsource aspects like payroll, this means increased production and revenue generation, which drives growth and productivity.”
#4 - Compliance
Every payroll provider has the responsibility of ensuring the minimum standards are adhered to, and that the HR departments of individual companies are aware of the same.
This helps protect the clients (your company) from risks such as compliance issues and especially when it comes to taxes. Some of the errors that wouldn’t be foreseen or detected by an in-house accountant are eliminated when you outsource the service.
This is because the payroll service provider has to comply with the Australian government’s National Employee Standards according to the minimum compliance rules.
#5 - Improved security
Malicious people and hackers target company payroll systems, and for a reason. These systems are rich in identity information and other crucial information that they can use in various ways for fraudulent purposes. With banks and other financial institutions becoming virtually impenetrable, criminals have devised other ways to target unsuspecting individuals through payroll services.
Payroll service providers, on the other hand, take data safety seriously and employ complex security systems and specialised staff to ensure their systems are safe and secure. This keeps hackers at bay and your business protected.
#6 - Lower risk of losing payroll expertise
Transferring information between new and former employees can be a costly affair for your payroll department. Outsourcing these services, however, eliminates such costs and hustles simply because the payroll service provider handles it all.
All you need to do is contact the service provider to have the data transferred fast and securely. These companies have a better payroll management approach when compared to in-house payroll systems.
#7 - Makes reporting easy
Outsourcing these services makes access to accurate information about your company relatively easy, hence no need for verifications. The easy access to transparent reporting means the company can plan for growth and even predict its staffing needs and changes.
#8 - Eliminates redundancy
As mentioned earlier, payroll service providers hire some of the best and experienced staff you can find. Their teams are well-versed with these systems, which reduces error-rate significantly.
Are you looking to improve the efficiency of your business? Claim a FREE consultation with the experts at JPLFM today.