When you run a business, you take on many responsibilities — if you’ve been running yours for any length of time, you probably already know this.
With so much on your plate at once, taking stock of what you do best and where you can re-prioritise goes a long way.
One job that always takes longer than you want it to? Payroll. Is it worth outsourcing something so vital to your business when it would save you so much time?
What is payroll outsourcing?
Quite simply, payroll outsourcing is giving your monthly payroll work to a dedicated team outside of your organisation.
Prices can vary depending on the level of service you receive. Whether you just want the basics — pay calculations, payslips etc. — or the full package, including pension administration and auto-enrolment, is up to you.
Whilst traditionally, this would have been handled by a bureau or outsourced facility, using an accountant or bookkeeper is now just as common.
What are the benefits of outsourcing payroll?
There are a variety of benefits to outsourcing your payroll obligations.
With time at a premium in modern business, outsourcing gives you more space to focus on what matters most. Whether that’s business-critical tasks or more time with the kids, hiring a specialist gives you back the hours you’d have spent yourself. You’ll save money on hiring someone internally, too.
A payroll specialist, like any business leader, is just that. They know what they’re doing — they’ll help you get the best results and deliver them effectively, every time.
They will also use state-of-the-art technology to ensure that they can easily share your staffing costs with you while keeping your data completely confidential.
Hiring a specialist will cost you, of course. But compared to what it would cost to hire someone internally? Small change. Especially when there is no guarantee the new person will be able to fill the void adequately.
The same logic can be applied to your systems, too — outsource to a new provider rather than buy a whole new platform.
What are the drawbacks to outsourcing payroll?
Like anything in life or business, there are drawbacks to outsourcing your payroll. By understanding these issues, you can understand them better and factor them into your decision-making.
A key concern from the businesses we’ve spoken to is fear of losing control. When you give a task to someone outside of your business, you will always relinquish an element of control.
And as communication becomes more strained, you might be concerned about less access to your payroll data.
This is where hiring the right provider is what’s important — maintaining the relationship is vitally important, so if a provider doesn’t offer this, don’t work with them. It’s your business, and you should be allowed to be as involved as you want.
The best providers will work with you to find an approach that works for all parties. They’ll talk to you about what you need from them and how they can work with you to achieve that aim.
If you’re on the fence about payroll outsourcing and what it might mean for your business, then now is the time to speak to a professional.
As a firm, we’ve helped countless businesses outsource their payroll and give them back hours to do more of the things they want/need. We’re committed to creating a proper working environment where you can be as involved or as distant as you want.
Get in touch with us today, and we’ll talk to you about outsourcing your payroll.