If you’ve been running your payroll in-house for some time, do you find all is running smoothly or is it a source of continual headaches? There are some very good arguments for outsourcing payroll, whatever the size of the business. Here are some of the top reasons:
The cost of an in-house payroll team doesn’t simply include the wages of the staff who run it. There are multiple additional costs that include software licenses, printing and distribution, reporting and the possibility of non-compliance fines. When payroll is outsourced, these costs are significantly reduced as you won’t need to pay out for so many overheads. For more information about Swindon Bookkeepers, go to https://chippendaleandclark.com/services/accountants-swindon
Often an in-house team that deals with payroll is part of HR and as such, are spinning lots of plates at the same time. This can mean payroll is slow or inefficient as a result of staff doing a multitude of tasks. When payroll is dealt with by a third party, it will be actioned by specialist workers who are just focusing on your payroll which can mean a boost in efficiency and productivity for your business.
Data protection and the way companies store and use information is very tightly regulated and becoming more complex all the time. With in-house payroll, this huge responsibility falls on your head. It can be a drain on resources to purchase the right technology and train staff to stay on top of regulations but a professional outsourced bookkeeping service will have these resources at their fingertips, saving you time, hassle and money, as well as keeping you compliant.
In-house payroll often involves one or two people who have all the know-how. Should these employees fall ill, be on holiday or quit – where does that leave your business? With a serious skill gap and a payroll problem! With outsourcing, there will never be a problem with business continuity as you can rely on an account manager and a team of staff who will be available.
Access to a team with specific expertise is more cost effective than training up internal staff to the same level of knowledge. Whatever the size of the business and whatever the query, there will be someone available with the answers so your staff don’t have to spend valuable time trying to find out the answer.
HMRC has a million and one ways to penalise companies who are late paying or make mistakes with their tax arrangements. For those looking to eliminate this risk, outsourcing makes good sense. As already mentioned, in-house payroll teams are also often responsible for other aspects of the business as well which leaves a wider margin for error when rushing payroll through. A third party who deals specifically with your payroll has more time to make sure that everything is as it should be so you don’t get fined.