When is Outsourcing Payroll Right for your Business?
It’s not uncommon for businesses to enlist the assistance of a payroll solution company to outsource their payroll operations to, but there are still a lot of new start-ups and SMEs who do this in-house and manage their own.
This is especially true in the infancy of a business, when owners are trying to keep their costs down while they try to grow the company. There can also be concerns about security and giving another organisation the responsibility of a payroll can feel daunting. But for some business owners, they might not be aware that you can outsource your payroll at all, so it’s not considered as an option.
As a business owner, how can you know when the right time is in your company to outsource your payroll?
It might make sense for you to keep your payroll in-house when it’s only yourself and a couple of employees that make up your company and use manual bookkeeping or payroll apps to help process your payroll. However, when your business is starting to expand and move to the next level, this often means more employees/contractors that you need to integrate into your business operation.
This is when things can start to get more complicated, with more variation in types of contracts and payments. The time and resource that it takes to process the payroll and ensure that it is accurate and compliant can start to increase, which can lead to a higher likelihood that things could go wrong. Making sure that your business is complying with tax laws and regulations is of upmost importance – outsourcing your payroll to a professional payroll solutions company can reduce this burden of responsibility, as your business grows.
Focus on Business
One of the biggest struggles for business owners who have launched a start-up is the balance between your product/trade and being a good business owner. You might be incredibly skilled at the product you’re offering to a customer, but not so experienced at running a business. Outsourcing allows you more time to actually focus on delivering good customer service and products to your base, but not at the cost of failing your duty to employees by not processing the payroll adequately.
Outsourcing frees up time and resources for you to focus on other pressing business priorities, especially when you’re new to running a business or financial matters. It’s difficult to be a complete all-rounder in any aspect of life – outsourcing helps to take care of a fiddly, tricky aspect of running a business that you need to ensure you get right.
When you’re processing your payroll, you might not have the checks and balances in place to ensure that you’re doing this in the most secure way possible. Outsourcing your payroll to a professional payroll solutions company can automatically enhance security, because they have the processes in place and use software securely to manage payrolls. Handling data and using secure software and servers gives a payroll the protection it requires.
For more information and advice about outsourcing your payroll, contact our team at APS Global today.