Running a small business or medium business is never an easy task and making sure you are constantly on top of your finances is one of the more difficult challenges. Payroll outsourcing is one of the ways you can go about it.
Business Accounting and finance is a specialised skill set that not everyone has. Unfortunately, when it comes to payroll, getting it right is vital to keeping your business moving forward.
The last thing you want is to destroy the morale of your employees by not paying them on time or run into compliance issues by not accurately calculating your taxes.
Thankfully, there is a way to overcome both the burden of doing your own payroll and the cost of hiring in-house payroll staff. In this article, we’ll be giving you 9 tried and tested reasons why you should be outsourcing your payroll.
What is a Payroll?
Before we get into why payroll outsourcing might be the solution you are looking for, we should define our terms, especially as the term payroll can relate to a number of different things.
At its most basic definition, your payroll is simply a list of your company’s paid employees. However, it can also refer to:
- The total amount of money which you pay your employees, including their full salary or wages and any applicable bonuses.
- A list of all your current employees’ salaries or hourly wage amounts, the hours which they work and any additional payments.
- The department which organises the payment of your employees and calculates their associated taxes.
As you can see, even the term payroll is slightly complicated, and that’s before we get into the mechanics of how you actually pay your employees.
What Impact Does Payroll Have?
An accurate payroll can have a huge impact on your business. Firstly, getting your staff paid accurately based on output and in a timely manner is vital to keeping their faith in your business and keeping morale high. Nothing dents staff confidence than getting paid late or the wrong amount.
Secondly, since payroll is linked to accurately reporting taxes, there are compliance issues to take into account.
Thirdly, since cash flow is the bloodline of most smaller businesses, being able to accurately predict your wage amount is vital to your financial planning process.
9 Reasons You Should Outsource Your Payroll
Now that you have a better understanding of what payroll is and the impact it can have on your business, let’s look at how leaving these tasks to a company that specializes in payroll and compliance solutions for small and medium-sized businesses in Africa could be the ideal solution for you.
1. Reduced Staffing Costs
Not every business or start-up is in the position to have a dedicated payroll department, and the cost of having an accountant – 90% of the time is equal to simply outsourcing the solution. Having staff dedicated to payroll is expensive. You also have to take into account the cost of training, payslip, and P9 form generation, together with the distribution of these key payroll-related items.
Outsourcing your payroll to a professional team gives you all the benefits of an in-house payroll department at a fraction of the cost.
2. Increased Resources
Since smaller businesses often lack a dedicated payroll department, the burden of calculating payroll often falls on the business owner or staff with other responsibilities, therefore cutting into your resources and time.
By outsourcing payroll, you can recoup that lost time by focusing on growing your business.
3. No Training Costs
Smaller companies often have to train a staff member to take over the complicated process of processing payroll. By outsourcing your payroll, you can be assured that you have highly trained professionals, who are up to date with the latest tax updates and legislation.
4. Increased Speed
Such teams are all competent with many years of experience which means they are able to turn around even the most complex payrolls in a timely fashion. Regardless of the number of employees within a particular organization.
5. Greater Accuracy
Payroll errors can affect the time employees receive their salaries as well as cause tax compliance issues, accuracy is greatly important. Having an experienced outsourced team working on your payroll means a distinct reduction in errors.
6. Better Reliability
Outsourcing your payroll means it isn’t impacted by holidays or unfortunate events that might slow down the process such as sickness.
7. Greater Flexibility
Upgrading to other value added solutions is much easier since our wide variety of product offerings ensure you have everything your business needs as far as employee management is concerned.
This means that on top of having your payroll on autopilot, you can easily upgrade to include Time and Attendance to ensure real-time data is relayed to your payroll. Ensuring a seamless process of time tracking lateness, payroll processing, and finally salary disbursement.
8. Increased Security
Checking your payroll for common types of fraud, such as payment manipulation or ghost workers is time-consuming and expensive. Outsourcing your payroll means you can rely on security systems trusted by over 300 businesses.
9. Peace of Mind
By outsourcing your payroll to a team of highly skilled and experienced professionals, you gain the benefits mentioned above and guaranteed peace of mind by knowing your payroll will be actioned accurately and on time each and every month!
You can get started on payroll outsourcing for free.