Picture this: your business is growing - now is the perfect time to expand your team. However, with this exciting progression comes the need for stricter organisation and financial management. Doing this in-house will ultimately result in a waste of time, resources and money, so what can you do to keep things by the book but keeps costs low? Consider outsourcing your payroll.
WHAT IS PAYROLL, AND HOW CAN IT IMPACT YOUR BUSINESS?
Your payroll is a list of everyone you employ and pay to work for you. It's one of the most critical responsibilities in any business, affecting everything from employee morale to the company's financial stability. Handling your payroll in-house requires the utmost attention – you have to make sure your employees are paid on time, and financial obligations are met within the letter of the law. Misreporting your payroll can potentially lead to fines; on the other hand, ensuring your payroll is completed accurately will guarantee that your taxes are paid correctly.
PAYROLL KEEPS ADVANCING
Government changes to rules and regulations are always inevitable as they look for ways to make the payroll process as accessible as possible. But with these changes comes the responsibility of keeping up to date with these payroll and financial requirements.
Mistakes are a no-go when it comes to your payroll. Getting this wrong will not impress your employees, nor HM Revenue & Customs. Staying on top of your payroll can be a difficult task - especially if you're focused on other functions within the business. Fortunately, it can be made easier with some external support.
SO HERE ARE 10 REASONS WHY YOU SHOULD OUTSOURCE YOUR PAYROLL:
KEEP COSTS LOW
Keeping costs low is crucial to any business. Multi-million-pound businesses can afford to maintain large payroll departments, but this is an expense that can be avoided for SMEs and smaller companies.
And here's why: payroll costs are a significant expense. Managing payroll incurs expenses not just through salaries for qualified staff but also for software licenses, training costs, payslip distribution, and other essential admin costs. Outsourcing your payroll department usually costs your business a fraction of the price of an in-house team.
SAVES IMPORTANT BUSINESS RESOURCES
Payroll takes time. And in a small business, that time could be used better elsewhere. 17% of small businesses alone commit 6-10 hours per month on payroll, while 11% spend more than 10 hours every month. Completing payroll alongside other responsibilities may lead to mistakes being made, and your staff feeling stretched. By outsourcing your payroll, you allow your team to concentrate on their essential tasks within their speciality, freeing up resources so they can be used where most necessary and important.
TRAINING IS EXPENSIVE AND TIME-CONSUMING
All payroll staff need to keep updated with the latest tax procedures and legislation to ensure they're efficiently completing each payroll cycle. Training that is highly accredited within the industry comes with a hefty price tag and is often time-consuming. To employ someone who already has this training under their belt will cost you an average of £32,500 a year (based on the average UK salary for a payroll manager).
IT PAYS TO HAVE EXPERIENCE
It pays to hire someone who knows the ins and outs; a good payroll service provider will know everything they need to know about tax laws and the latest government legislation. Having a wealth of knowledge or experience on demand is something you're unlikely to have in a small in-house payroll department - unless you pay the high price tag that comes with it.
SPEED
Outsource your payroll to specialists in the industry, and they will process even the most complex of payrolls with consistency and speed. No need to worry about missed payments or delayed employee paydays as deadlines will be met every single time.
RELIABILITY
An in-house payroll department will only be as reliable as life allows them to be. When choosing whether or not to outsource your payroll, remember to consider the effects of annual leave and sick days. There is also the added risk that a member of your payroll team could leave at any given time – and their expertise and training will go with them.
ACCURACY
35% of an average HR team's time is dedicated to payroll and error correction. Payroll mistakes can be harrowing and stressful for your employees – and if errors are made and your legal obligations are broken, a lot can be at stake. By outsourcing your payroll to a reputable provider, mistakes and errors are far less likely.
SECURITY
Consistently supervising your business's payroll for abuses and discrepancies is a time-consuming task. Any reputable payroll bureau will use software and technologies that spot potential fraud and manipulation. Outsourcing your payroll will give you the confidence that you are always working in line with the law and ensure that your data is protected using the latest secure technologies and security updates.
EMPLOYEE SATISFACTION
Paying your employees on time is vital to guarantee employee satisfaction. You can't risk being unreliable when it comes to payday – your employees have commitments to attend to and bills to pay. Outsourcing your payroll safeguards against errors like this and keeps your employees happy.
STRESS-FREE FOR THE BUSINESS OWNER
A perfect payroll cycle will guarantee peace of mind to any business owner or manager. No stress or worries - and you're left to focus on running your business and thriving in your niche, knowing that your payroll has been handled accurately.
HOW CAN WE HELP?
Trusted with over 250,000 payments per month, Finesse Resources are the go-to company for your entire payroll cycle. We make sure your staff get paid correctly and on time, every time.
With over 17 years of experience in payroll services, our highly experienced and CIPP accredited administrators assist companies of all sizes.
Get in touch today and get peace of mind with a professional, fully managed payroll service.