Principal: Sarah Meek MCIPPdip, AICB PM.dip
Licensed and regulated by the Institute of Certified Bookkeepers (ICB)
Practice Licence Number: 17284
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The Benefits of Outsourcing your Payroll
Are you happy with your current payroll processes, or are you a new business who is looking for a payroll provider?
There are substantial benefits to outsourcing your payroll and now is the perfect time to consider a change. The benefits include:
1. Cost Savings
For new business start-ups, the savings can be made instantly due to the fact that no payroll or auto-enrolment software has been purchased and no staff training or recruitment has taken place.
For SMEs who already have an in-house payroll service, the savings are still vast. If you calculate the hours your employees spend on payroll-related activities, payroll software, staff training, payslips and payroll software updates, it becomes clear that most SMEs will be
able to save by outsourcing. In addition to this, there is now the added burden of auto-enrolment which requires further training and time.
Whilst cutting costs is a primary factor in outsourcing payroll administration, many businesses also benefit from the time and resources spent on the payroll function. Outsourcing allows SMEs to refocus the attention of key individuals onto more strategic areas of the business that directly affect profitability, such as performance, client retention and expansion.
3. Compliance and accuracy
Due to the constant stream of new legislation and regulations, it is becoming increasingly difficult to find qualified and experienced payroll administrators. Payroll is an area which requires expertise, up to date knowledge and qualifications. Outsourcing your payroll to a trusted provider ensures full compliance with HMRC and The Pensions Regulator.
4. Reliability and efficiency
Payroll is a fundamental aspect of the business operation but does not provide any value to the business. In SMEs particularly, it is likely that a single member of staff will be responsible for the payroll function, creating vulnerability if that employee goes off sick or leaves unexpectedly. Outsourcing to a trusted provider allows owners the peace of mind that their payroll obligations are being dealt with accurately, timely and lawfully.
The benefits for SMEs of outsourcing payroll go far beyond simply reducing expenditure. A fully outsourced payroll will allow you to free up valuable resources that can be redirected to other areas of the business. So if you’re a start-up or a business looking to grow, then it may be time to explore the option of outsourcing your payroll.
MCIPPdip, MICB PM.dip