Should You Outsource Payroll?
Having an efficient payroll system is a must for any business. Whether you’re running a neighbourhood cafe or a vast multinational, you need to be able to rely on your employees being paid properly. A lot of companies have in-house payroll services, but in recent years, outsourcing has become increasingly popular.
But is it the right option for you? There are certainly advantages to outsourcing payroll, but there are drawbacks too. Here at Business Quotes, we know what to look for and we’ve put together this short guide. If you’re thinking about hiring an external accountant, bookkeeper or specialist payroll company to handle things, here’s everything you need to know.
The Benefits Of Outsourcing
Arguably, the main reason to outsource is to save yourself time. Managing a payroll system can be time-consuming and awkward, especially when you first start out and have to navigate all the teething problems. As an employer, you have to stay compliant with the relevant tax obligations and PAYE responsibilities and tax laws can be very confusing for newcomers. If you’ve finally got your dream business off the ground, it can be demoralising to spend more time navigating tax laws than actually doing what you love.
Outsourcing your payroll takes the pressure off. You’ll be able to devote your energy towards customer service and maintaining your products. A professional accountant will have a better grasp of the tax codes and you’ll get better peace of mind. It’s important to have an optimistic outlook in the early days of a business, and you’ll sleep better knowing that your payroll is in reliable hands. Additionally, it can be more cost-effective. You won’t need to buy a payroll system and you’ll save money on long-term maintenance issues.
With all this in mind, outsourcing a payroll looks very appealing. There’s less risk of errors or late filings, less legislation to keep up to date with, and it can be the cheaper option. Sounds too good to be true, doesn’t it? Well, don’t rush to make a decision just yet. There are drawbacks as well.
In-house Payroll Services
If you outsource your payroll, you’re effectively handing control of a key part of your business to someone else. This can be off-putting, especially to more ‘hands-on’ people. It means handing over confidential data, and you might find yourself locked into an unfavourable contract if your circumstances change.
There is also the risk of miscommunication between companies. When dealing with taxes and pay data, you’ll need to make sure everything is communicated accurately and a simple typo can have unintended consequences. You also might not have instant access to an outsourced payroll and it could be harder to fix problems.
If you do opt to outsource your payroll, we recommend doing as much research as possible. Before you choose a company, check its reputation, pricing, services and which technologies they use. Measure it up against your budget and make sure you know what you’re getting into.
With all these factors in mind, you’ll be well on your way to making the right decision. External payroll services can be hugely beneficial and if you choose the correct one, you can depend on them to be accurate and legally compliant. It’ll enable you to focus more on the nature of your business and let’s face it, you didn’t start your own company from scratch for the sake of filling in tax forms, did you?
If you want some assistance in finding the right payroll service, you’ve come to the right place. Click on the option below and within minutes, we’ll assess all your needs and find a suitable match.