The Art of Payroll
There’s more to payroll than meets the eye. In addition to getting your employees paid on time, payroll is used to calculate tax deductions, paid and unpaid leave, employee benefits, bonuses, and much more. Tax may vary between employees too, so it’s not a linear process of totting up simple numbers.
There’s a reason why payroll managers are highly-trained individuals with years of experience - it’s because the job isn’t easy! Instead of learning the art of payroll yourself or hiring internally, outsourcing payroll is a great option for start-ups, small businesses, and medium-sized businesses alike.
Spare yourself the pain and suffering of digging through endless employee rotas, spending nights in spreadsheets and staring at numbers until they become squiggly lines by outsourcing payroll today.
Outsourcing isn’t a new concept. At its core, outsourcing enables business tasks to be dealt with by trained professionals external to the business itself. Outsourcing is both a time and money-saving exercise. It saves time by outsourcing tasks to those with dedicated, specialist knowledge and it saves money as this is often cheaper and more flexible than hiring internally.
The Benefits of Outsourcing Payroll
1. Save time & money
We’ll spare you the time is money cliche but as the old adage suggests, saving time when running a business can cut costs across the board. This is especially true in startups and small businesses where one individual or a handful of individuals have to manage every business process ranging from bookkeeping to payroll. Even in medium-sized businesses, outsourcing is an excellent time and money-saving option that allows a business to remain streamlined to its key goals.
Outsourced payroll also means outsourcing the time that you’d otherwise need to dedicate to proper payroll management. This allows you to spend more time on growing your business.
Not only that, but the cost of outsourcing is often much lower than hiring internally. It’s also much more flexible and allows you to scale payroll easily when you add or remove employees.
2. Ensure compliance
Compliance is the stuff of nightmares for most but payroll managers eat that stuff for breakfast.
Payroll, tax, and bookkeeping requirements change all the time, as do the government regulations for their procedures. One example is Making Tax Digital, due to roll out fully in 2023, which will require all businesses to keep digital records of tax returns. Expert payroll managers will always have their finger on the switch when it comes to new legislation and will ensure that you don’t need to worry about whether or not you’re doing the right thing.
Professional payroll managers also ensure that records are accurate and HMRC-compliant. This vastly reduces the chance of making any sort of mistake when calculating payroll for employees. Outsourcing provides peace of mind as you’ll know that payroll is being handled by qualified, highly-trained professionals that are using HMRC-compliant software.
3. Employee satisfaction
Mistakes in paychecks can cost you your employees. It’s as simple as that. Paying employees for their time and effort is a huge responsibility. They’ll be trusting you to get this right and they shouldn’t have to do their own calculations to verify their pay and deductions. A recent study of European employees found that some 44% of employees had been paid late by their employers and that this often leads them to become ‘actively disengaged’ with the business and their role.
Employee-employer relationships are symbiotic and nailing payroll every time is fundamental to maintaining the relationship. Outsourcing means that payment is made on time, every time, and with the correct deductions made and bonuses calculated. Payroll managers will be aware of bank holidays and other public holidays too and won’t forget to release payment early in these situations.
4. Get the latest in payroll software
In addition to basic payroll tools, advanced payroll software can sync with your HR software or you’ll be able to sign into a platform and assess all of your payroll data in one place. It’s transparent and flexible, and you’ll always retain the chance to check through records yourself.
Cloud payroll services are also very secure and store sensitive employee and business data on encrypted servers.
Learn More With Accountancy Cloud
At Accountancy Cloud, we provide outsourced payroll and a suite of expert financial services ranging from bookkeeping to payroll and tax. We’ll work with you to set your records straight and move your business finances into the 21st century where they belong! Get in touch today.