Why Would You Outsource Your Payroll?
It’s very easy for small businesses to get wrapped up in support activities and find themselves with not enough time to focus on their core business activities. Outsourcing various aspects of your business to 3rd party software providers might sound unsettling at first, but the reality is that applying innovative IT products to your business – whether they be through purchased software or software that is leased as a service – can be profoundly transformative.
3rd party payroll services offer you the potential for saving huge amounts of time and hassle with regards to effectively going through the paperwork to ensure regulator compliance. The benefits of knowing without a doubt that you’re HMRC compliant greatly outnumber the financial costs necessary to implement these HR systems.
The changes made to PAYE in April 2013 have only emphasized the importance of payroll services. Now that businesses need to send real time information back to HMRC during every instance of employee payment, it’s more important than ever to stay on top of your payroll and ensure that everything is accurate in order to stay compliant with HMRC and avoid any unnecessary hassle. There are several UK-based payroll service providers that provide HR solutions for your business, including (but not limited to), CPS, Sage, PBS, Payplus, Ceridian, and many others.
Although they may have distinguishing features and varying degrees of user-friendliness, ultimately they all provide many of the same benefits. Payroll services eliminate the need to manually track wages and in doing so save plenty of valuable time that can be spent concentrating on your core business. Depending on the size of your business, it eliminates the need to employ full-time staff, as the software handles many of the functions automatically. Payroll services are automatically updated with the latest regulatory changes, so you can be confident you’re always compliant without having to re-train staff or stay on top of the news. There are also varying degrees of outsourcing; businesses can choose only to sign up for particular modules of the software or apply it all full stop and outsource their payroll activities entirely.
Cutting costs is the cornerstone to every successful business, and payroll services allow money to be spent in a more efficient way, saving you money. Most 3rd party software is sold on a subscription basis and is very affordable, which eliminates the possibility of sinking tens of thousands of pounds into a system that doesn’t suit your needs. Don’t like your provider? Cancel your subscription and shop around in the market, you’re guaranteed to find a company that understands your needs and can customize their software to match them.
Lastly, the expertise that outsourcing your payroll services provide will vastly exceed relying on your internal staff. When you sign up for 3rd party payroll service providers, you also sign up to be a part of their support network that will help you work through any problem you may encounter while implementing and transitioning into your new system.
As regulatory organizations crack down on businesses all across the country and demand accurate, timely data, it’s important to remain ahead of the curb and not waste time playing catch up. Implementing modern software solutions for your payroll will save you time, money, and ultimately give your businesses a competitive advantage over your market rivals.