Just because something has been done a certain way for a long time does not validate that decision. In fact, it’s often the case that regimented procedures are grossly ineffective and in need of an overhaul. This can be seen many times over when we look at payroll processes, with the rise of outsourced payroll highlighting the potential that exists for your business. If you’re unsure about whether to stick with your in-house solution or explore an outsourced one, let’s take a look at what you can expect.
Take back your time
There is never really a surplus of hours in the workday, especially for the finance department. Choosing to outsource payroll will allow you to take back lost hours, and re-allocate them into other need areas or new and fruitful initiatives. Pouring over the books and managing payroll in-house will never quite feel ‘done’ as you’re too close to the process, and haven’t yet automated what needs to be done. This feeling of not having enough time doesn’t have to be something you grow accustomed to. Claim back those hours and see what can be done with this newfound freedom.
It wouldn’t be a viable improvement if there weren’t benefits to your bottom line, and outsourced payroll achieves just that. This solution affords the opportunity to reduce your headcount and the cost associated with training up an internal resource. On a greater scale, it can even reduce your overheads without the need to accommodate another person or persons in this department. Imagine if you didn’t need to contend with or finance another resource’s annual leave, working space or development. These funds can be absorbed back into your business or in upskilling your remaining team members.
Single Touch Payroll was introduced in 2018, requiring businesses to comply with new reporting requirements. These changes rocked the foundation of many businesses who now needed to be reporting income earnings with greater frequency and depth of information. Single Touch Payroll was the trigger for many businesses to adopt an outsourced payroll provider, recognising that the reporting and software requirements were best left in the hands of a third party. Compliance is not a luxury, it’s a legal requirement, and one that should not be overlooked.
Enjoy greater mobility
The advantages of outsourced payroll go beyond the office. In fact, you should be able to access your payroll dashboard and reports from every corner of the world. This may be a difficult concept for those who believe work can only be conducted within the four walls of a business, but outsourced payroll allows for greater mobility for all employees. Approving and report access should be available to all management and key stakeholders, and now you can with the sleek interface that outsourced payroll providers include.
Regulate your reporting
Reporting no longer needs to be a dreaded event at the end of each month. You can now automate your reporting, and design new reports that can add value to your business at the start, middle and end of the month. Reports will guide future decisions and company direction, but it’s also unrealistic to believe that your internal resources have the capacity to be populating and designing a series of reports. Outsourced payroll gives you the best of both worlds.
There are many factors to consider when weighing up outsource and in-house payroll options. While all businesses will have different variables to take into account, the benefits to outsourced payroll are significant. Understand what the pain points are in your finance department, and look at the outsource payroll models to see what value can be added to your business.