Payroll, although being an essential part of a business, it is not necessarily a determining factor when it comes to business growth. Payroll related duties tend to take up a lot of valuable work time, not to mention the numerous resources required during the process that could be better spent elsewhere.

Outsourcing payroll is one way to alleviate some of the stress and pressure that comes with payroll handling. If your company is not financially able to have an in-house team dedicated to managing payroll, it may be the most cost-effective and efficient business approach you can make.

Here are some of the TOP beneficial reasons for outsourcing payroll:

• Saves time

Any company knows that managing payroll is never an easy and clear-cut task that simply requires managing wages. It could involve a whole heap of other things too, such as dealing with new employees, benefit deductions and terminations. And we need to take into consideration that payroll is not a one-time thing. The entire process tends to eat up a lot of working hours month after month that could have been better used.

Outsourcing frees up much valuable time while providing 100% precision when it comes to all matters related to payroll. It removes a lot of headache from companies and enables freedom for administration staff to concentrate on core functions, far more beneficial for business growth.

• Access to a highly skilled team

Outsourcing provides access to a team of highly skilled experts that are always up to date regarding new government regulations. Outsourcing payroll accounting allows you to have an experienced professional team dedicated to working on such matters that will handle everything with the utmost accuracy. Benefits and deductions, which make up part of the payroll system will be managed accordingly alongside matters related to HR support services, compensation and employee concerns, which is an excellent bonus for your company.

• No maintenance costs

In-house payroll with all the paid software and costly upgrades necessary can eat up a lot of business costs. Companies have to ensure that they always have the latest tax codes and tables installed onto their systems at all times. This is laborious as much as it is costly, but it is mandatory.

Outsourcing eliminates the need for any of this, as the only cost involved is the cost of the service. It could be the most cost-effective move you make when you consider all the costs and vast amounts of time spent trying to manage all of this in-house, not to mention the risk of penalty if anything were to be handled incorrectly.

• Direct bank deposit

Outsourcing is one of the most secure methods around. It enables direct bank deposits which most employees prefer. Small companies may not have the means available to do this, and paper check payment methods tend to use a lot of resources and filing which isn’t exactly the most secure way to handle modern payroll. Keeping tabs of the paper trail is always problematic and risky, whereas outsourcing will eliminate all of those concerns and the chances of fraud occurring are drastically reduced.

Many frauds have occurred where in-house payroll management systems have been handled by unauthorised personnel leading to things such as identity theft, embezzlement and document tampering. You can prevent this by assuring that outsourced teams will only store data on the most secure servers with backup and the latest encrypted technology available.

• Human Resource Management

When a company decides to outsource their payroll, they can be assured that they will be equipped with the very best when it comes to HRM, something which is extremely important and essential for any workplace in today’s day and age. Outsourcing payroll speeds things up significantly, information can be processed much faster and far more efficiently, and employment management is undoubtedly managed better.