5 Benefits of Outsourcing your Payroll
Outsourcing, especially when it comes to accounting functions, is by no means a new practice. Many companies, both small and large have been outsourcing their payroll for years. More and more businesses are looking for opportunities to save money and reduce operational costs without compromising the efficiency of the business.
If you are considering whether or not outsourcing your businesses payroll is the right decision, we discuss the various benefits associated with making use of an outsourced payroll partner like Open Books:
1. Cost, Time Savings
Processing your businesses payroll in-house can often be a time-consuming and costly process. By outsourcing your payroll function, you will be able to reduce your businesses operational costs in the sense that you won’t have to pay an in-house employee their salary and benefits. You also won’t incur any of the costs associated with the software, hardware, training and security that comes with managing payroll. Furthermore, by choosing to outsource your payroll to an outsourced payroll partner like Open Books, you will have more time and money to focus on your core business activities.
2. Mitigated Risk
If the Covid-19 pandemic taught us anything, it would be that we should be prepared for anything. Having a dedicated employee looking after your businesses payroll may not be the best decision as this will create dependency. People often fall ill, resign or in unfortunate circumstances, like during the pandemic, many businesses were forced to reduce costs by downscaling the size of their teams. This is where outsourced payroll can be extremely beneficial, your business can save money and not be dependent on one individual. Outsourcing your payroll will give you peace of mind that your payroll will always run on time.
Legislative compliance can also be something to consider. Legislation can often be complex and it is extremely important to stay up to date with all of the relevant changes, this can often be quite challenging and the last thing your business needs is a fine or penalty because you are not compliant with the relevant legislation. By making use of a trusted payroll partner like Open Books, you will have peace of mind knowing that your payroll is compliant with all of the relevant legislation.
3. Access to The Latest Technology
Technological limitations are among some of the top reasons why companies are choosing to outsource. Outsourced payroll partners like Open Books use robust technology and cloud-based solutions which enable employees to access their information with ease. An added benefit of using an outsourced partner is that you will not personally bear the cost of the software that is used for payroll, these can often be extremely expensive and are completely covered by your partner.
4. Enhanced Security
The payroll process can be quite complicated and the possibility of a data breach is not uncommon. There are plenty of hackers and scammers who threaten your business and employees’ security. Preventing employee data from being compromised is always a top priority. Most outsourced payroll providers use cloud-based systems that are more secure and offer benefits like monthly scans, antivirus protection and encrypted data. Your outsourced payroll partner will ensure that all of your data is securely stored, as this is crucial to the success of their business.
5. Access to Payroll Expertise
Payroll can often be quite challenging for most businesses, by outsourcing this function to a trusted outsourced partner like Open Books, you will gain access to payroll experts who have extensive knowledge in payroll and payroll software. These payroll experts are extremely skilled in what they do, by utilising an outsourced payroll partner, your payroll will be seamless. Furthermore, your payroll partner is far less likely to make a serious error than your in-house staff. Some outsourced partners will bear the cost of penalties due to incorrect calculations or late payments, provided that you have given them the necessary information on time.
Outsourcing your payroll function may seem quite intimidating, but when you choose the right partner, the benefits will be endless. The team at Open Books have extensive experience across multiple accounting, payroll and financial systems. Should you be interested in outsourcing your payroll or another accounting function, please feel free to contact us.