In any business, no matter what industry they work in or product they manufacture, the aim is to always move as efficiently as possible. To be able to stay productive with less time is an invaluable skill that enables a business to move head and shoulder above their competition.
Often, outsourcing certain services allow a business to concentrate their time and resources on more important things like closing client deals or focusing on employee engagement. Payroll is one function that is often outsourced as it is considered to be a non-core function or a service that is essential but doesn’t necessarily differentiate a business from its competitors.
Below are a few reasons why outsourcing payroll processing is the way to go.
Potential time saved
No matter how many people a company employs, there’s no getting around the fact that payroll requires massive attention to detail. It isn’t something that can be done in tandem with another task or squeezed in throughout the workday.
Reputable payroll providers will handle everything from benefits administration to tracking attendance. If there aren’t any discrepancies or major problems, these providers will only reach out every pay period to notify business owners that everything has gone smoothly.
Easy collation of data for in-house and accountant use
For future accounting purposes, it’s vital to store information on how much employees earn, what benefits employees receive, how much tax employees contribute, etc. These figures are necessary for tax purposes, both for business year-end income tax filing and for quarterly and annual payroll tax reporting. Keeping this data easily accessible and organized is necessary when supplying accountants with the information they need to do their job.
Luckily, payroll solution providers such as Workstem and Workstem’s partners are capable of taking the guesswork out of this process. For example, employees with leave entitlements and other compensation and benefits can be easily tracked and inputted into Workstem’s software. From here, any calculation will be automated and the need for endless Excel spreadsheets and paper confirmations can be eliminated.
Furthermore, Workstem’s software can easily calculate the correct payroll amount of every employee regardless of their status. From full-time employees to hourly part-timers, Workstem takes into account attendance records and other pay items to ensure employees are compensated fairly and on-time.
Enhance data security
Even with trusted security partners, company payroll data’s value means it will always be a target for cyberattacks.
Outsourcing payroll can provide an additional layer of data protection. For instance, a payroll provider helps store a business’ data on the cloud. What this means is that rather than sensitive employee data being stored on a singular computer or device—which can be easily corrupted or be subject to a single hacking—data is instead stored on secure cloud servers away from the office. These cloud servers that are also trusted by the biggest financial institutions become the equivalent of a safe haven for important company information.
In an ideal situation, outsourcing payroll gives any business—whether it’s a large multinational or a budding SME—multiple benefits. It frees up time and allows for a greater focus on the core business, as well as providing access to greater technology and professional expertise. With this in mind, it’s obvious now that outsourcing payroll is less an additional cost and more of a long-term investment.