Top 10 Reasons Why You Need to Outsource Payroll

Top 10 Reasons Why You Need to Outsource Payroll

“I should focus on doing the revenue generating tasks!”

That’s the mindset of every entrepreneur these days. Well, that’s totally comprehensible, though. But I have a principle that I honestly believe that applies in every aspect of our lives, and it’s this:

“It’s the little things that we do that make a big difference in our day to day lives.”

Yes! That’s the principle that I live with and the principle that I bring both in my personal and professional life, and you should ruminate about that as well. In our life, it’s easy to get caught up with all the big things, we want to achieve big goals, but we forget to start small because it is only through being patient with doing the small tasks that we can be closer to achieving the big goals that we have.

Your business runs with many operations, and that incorporates marketing, branding, financial planning, workforce monitoring, etc., but how about the non-core tasks? Do you give importance to it? How about Payroll? Who does your payroll? Do you have an in-house payroll specialist who does that for you? What’s that?

No one?
Oh dear!
You’re in mighty trouble, mate!

Do you know that if you fail to deliver this process properly, your employees would be leaving your company in no time? Your employees go to work because of their salary, and that’s the brutal truth for that. So, if you don’t pay attention to this, you would have no employees working for you, and the result would be: no manpower doing the business functions in every department. Do you see the effect of that?

That is why I’m giving you the top ten reasons why you should outsource your payroll process today:

 

1. The minds of your people are way out of your control.

 

In our world today, it’s rare to find a loyal employee who would stay long enough at your company. I’m sure as a business owner, you already saw previous employees walk out of your door, resigning out of the blue, leaving after incurring a confrontational fight with his/her superior. Now, why am I even tackling this? It’s because it’s correlated to your payroll process. You see, you can’t control the minds of your people, and that includes your in-house payroll employees as well!

Let’s say you decided to hire an in-house payroll specialist to do the payroll process for your employees, but eight months down the road, he/she finally decides to resign. The question is: Who would do the payroll process now? It’s can’t be you, though! You can’t afford to do payroll tasks forever; it’ll take time away from core business tasks that generates revenue.

Business is all about competition, and competition not only happens with regards to competing with product prices, it also incorporates competing with getting the very best and competent people to work for your company.

So, what if this payroll specialist of yours knows the ins and outs of your payroll process, and finally decides to take on a new career opportunity? The result of that would be: he/she would walk away with the utter knowledge of your payroll process. It’s difficult to hire and train new people nowadays, as what I’ve mentioned earlier; business in its very nature is competitive!

How would you avoid this, then?

Of course, it’s through outsourcing your payroll process completely to a payroll outsourcing provider! Doing this eliminates these kinds of instances, never worry about an employee resigning at your company anymore. It evades the need to train and hire a new payroll specialist to do your in-house payroll.

Have you already found the best payroll outsourcing provider today?
I’ll give you a hint, the company’s name starts with the letter “C.”

 

2. Dodge shady payroll in-house employees.

 

Don’t we just hate shady employees?

What if these shady employees are found at your payroll department? You found out that the one who does the computation is an unscrupulous person. Instances like this can happen, though. It’s better to prevent it than to solve it once it already happens. So, it’s better to outsource your payroll process to avoid instances like this.

Remember: you can’t control the minds of your employees; you never know who possesses an evil mind or malicious tendencies.

 

3. It’s cost-effective.

 

Payroll’s being done once a month, it’s not like bookkeeping where it’s being done everyday. It’s not an everyday task, so it’s wise to outsource this process to a payroll outsourcing provider to than hire an in-house payroll specialist to do your payroll process. It’s cost-effective as it saves overhead costs, issuing benefits, providing a monthly salary, etc.

 

4. It saves time.

 

The payroll process is redundant and time-consuming. It involves getting the daily time records of the employees, calculating their salaries based on the hours that they’ve worked, validating the hours that they’ve worked that’s indicated on their DTRs, and more. And you’re going to do this over and over again until each employee has been processed! A business owner’s time is very precious, so that is the goal of a payroll outsourcing provider, and that’s to help you save time. And it’s not only you that would benefit from this, that incorporates your in-house employees as well, they’re doing tasks that impacts the flow of your business, and this helps them concentrate on what they do best.

 

5. Access to new payroll technologies.

 

Your payroll outsourcing provider keeps themselves updated with the new payroll software out there; they use a cloud system for you to gain access with your employees’ payroll any day and anytime. Besides, using software technologies eliminates mistakes. It’s the employees of the payroll outsourcing provider that encodes the data within their software, and the software does its part when it comes to computing the right pay for the month. It’s basically a combination of human effort and technology. In addition, it aids in providing a paperless payroll process. I mean, how cool could that be? If I were you, I would start hunting for my payroll outsourcing provider right now. Hurry! They’re waiting for you.

 

6. Skip the math, mate!

 

Let’s face it, not everyone’s gifted with doing the figures. If you’re not comfortable working with numbers, and you take on doing the payroll task, then you are setting yourself up for loads of calculation errors. I promise you this: your employees would go crazy mad at you if you hand them the wrong salary. The result would be either of the two: you overpay them or you underpay them, but mostly, it’s the latter. Instead of doing this, you can just outsource this task to your payroll outsourcing provider, and skip the need to do the computation. If math is not your thing, then the payroll outsourcing provider would do the math for you.

 

7. Never worry about paying payroll tax penalties anymore!

 

Tax law regulations are always changing. So, if you’re not the type of business owner who would constantly keep up with the ever changing tax rules, then that is one sign that you need to outsource your payroll process to your payroll outsourcing provider.

Besides, you need to pay payroll taxes, and you want to pay the exact figures to the government. Outsourcing this task helps in avoiding unnecessary tax penalties, and it evades the possibility of overpaying your payroll taxes. In addition, if the outsourcing payroll provider committed a mistake of failing to pay the payroll tax, they would be responsible for that, not you, eliminating the burden of this problem within your hands.

How cool is that?
Very, mate!

 

8. It allows your HR personnel to do their core tasks.

 

Your HR personnel does loads of things already, including compensation & benefits, training & development, recruiting, filing of employees’ documents, etc. If you hand them the extra work of doing payroll process every month, that’s eliminating hours away doing their core tasks. Delegating the task to an overworked manager or employee sets a high risk of committing calculation errors leading to an inefficient payroll process.

Outsourcing helps in eliminating the tasks of your HR personnel thus leading to an efficient work process from them. The outsourcing company would take on the whole payroll process completely.

 

9. It gives you security.

 

Payroll outsourcing companies does their payroll process in a confidential manner. Information such as these should be kept confidential at all times. With the outsourcing company doing the payroll, your in-house employees won’t know the salary of the other one thus eliminating workplace tension. Aside from that, you will have the confidence and the security that you’re delegating the task to an expert, an expert who’s not only good with the figures, but a seasoned professional who does this process with high amount of experience. Leave it to the experts, shall we?

 

10. Direct deposit advantage.

 

If you have at least one employee working for you, you should consider outsourcing your payroll process. But what if your company has more than that? What if your company exceeds more than one hundred employees? Can you do direct deposits for each and every one of them?

If the answer is a straight “no” then outsourcing this to a payroll outsourcing provider helps with doing this task efficiently. It’s difficult to go in the bank and deposit your employees’ salary, especially in the Philippines! Here in the Philippines, before you can actually accomplish the task of depositing money inside the bank, you need to wait for long hours for your number to be called by the bank teller.

Outsourcing providers employ loads of employees for this particular task, so their clients would never have to worry about doing direct deposits for their employees. Besides, employees nowadays prefer receiving their salaries through direct deposits, than manually getting them from their employer. This is very ideal if you have remote workers working for you; the work at home type of employees, these people are not constantly inside the office grounds, so it’s not easy to access their salary when it’s already payday. You would make them very happy receiving their salaries on time if you delegate the payroll task to your payroll outsourcing provider; it eradicates the need for them to wait for you to meet in person just to get their salary. In addition, you’re building trust with your employees; they’ll have the confidence with regards to the salary aspect that it would be delivered on time monthly.

 

Final Words

 

Payroll outsourcing providers are there to help you, they’re not there to get money out from your pocket and not do a valuable thing in return. They’re like your business partner focusing on the non-core tasks, because irrelevant (payroll tasks) might it sound, it pays a huge process in running your business.

Have you already talked to your payroll outsourcing provider now?
Wait, have you already found one? If not, then I recommend you to check out our services on this one.

CollarFinder’s Accounting Services

Check out the link above to know more about our services.

Let’s talk payroll today!