Traditionally, company payroll processing has been a non-core company function handled by internal accounting teams through manual bookkeeping or dedicated payroll software, however, we have seen a sharp rise in businesses opting to outsource payroll for several reasons. In this article, we will look into how businesses can benefit from outsourcing company payroll to professionals, such as MBS, equipped with the skills to alleviate the necessity of investing internal employees in this function.
With profit being a core, albeit not the only, driver of company success, it is no surprise to see businesses incorporate strategies that would save them money in all areas of business operation. Company payroll is no exception to this consideration, and one of the primary benefits of outsourcing payroll is the reduction in costs it can bring to the organisation. The labour time needed to process payroll for small to medium companies and as well as meeting the financial and benefit demands of employees tasked with handling internal payroll are going to chip away at a company’s budget and, as a result, companies can leverage an affordable alternative in the form of outsourced payroll professionals.
The satisfaction of employees directly impacts the success of a business and there is a myriad of business operations set to trigger employees within a company. One such consideration is financial privacy, specifically, the minimisation of how many people working in the company are able to see who is earning how much money. Outsourcing payroll can nullify this potential trigger in several ways, notably the inability from anyone in the company knowing from payslips how much another is earning as well as the inclusion of a Password Protected Electronic Payslip, further securing payroll privacy for a company’s employees.
The benefits of this type of payslip works hand in hand with the protection of a company’s employees, ensuring that businesses minimise the potential for identity theft, embezzlement of funds, or tampering with company files by disgruntled members. Outsourced payrolls are confidential, with multiple servers and data protection systems ensuring that your business is protected.
Payroll requires meticulous attention to detail and heavy time investment on the part of a company’s dedicated in-house accounting team. Such a task can be incredibly taxing and time-consuming, having a negative impact on other areas of the business. Companies would benefit from outsourcing payroll as the time pressures of this job are completely alleviated to allow for HR Departments and Accounting teams to focus on their core tasks.
The smallest mistakes in payroll can result in large SARS penalties, especially if these accrue over several times. By outsourcing company payroll to professionals utilizing trusted software, a business may reduce the risk of racking up these SARS penalties resulting from employee mistakes. Government tax regulations and business UIF submissions are daunting for small businesses, but this pressure can be completely removed with the assistance of experts trained in tackling these tasks. From completing EMP201 returns to adjusting protocols to align with changes that could affect payroll, an outsourced team is guaranteed to aid in your operational efforts.
Another tremendous benefit of outsourcing payroll is that companies will not be required to invest in infrastructure or the maintenance of said infrastructure. Payroll providers are equipped with the necessary software and skills to successfully complete their jobs while utilizing programmes that will minimise risk and work more effectively than an in-house team.
While payroll providers are incredibly beneficial, expert bookkeepers are still highly sought-after and by hiring one, a company runs the risk of eventually losing this employee. The cost and effort of securing a new employee are not worth the risk when one could have their payroll effectively handled by an external expert readily available to assist with all your payroll needs.
From the reduction in company costs to its time-saving potential, outsourcing company payroll can be extremely beneficial for businesses big and small. One cannot deny the positive impact partnering with external professionals to aid in the completion of this non-core function can have, and the ways in which any business may seek to dramatically improve their operations in other areas.