How Outsourcing Payroll Saves Money
Category : Accounting , Bookkeeping , Payoll
For businesses with more than a 150 employees’ payroll can take up a lot of internal time and resources for the accounts department. Making the decision to outsourcing payroll saves your business time, it’s most valuable asset. This extra time translates into more capacity to devote resources to high value business activities.
Save Time
Most businesses with an internal accounting team allocate some of their time to staff payroll. Estimating the amount of time it takes to process payroll for 150 staff members, it can take up to one full day of work minimum per week.
This is on top of the other duties of the accounts team focus on such as managing budgets, reporting and accounts payable/receivable. Outsourcing payroll makes sense as it is very competitively priced and can be less than a full day’s wage for a staff member. The decision to outsource clears potentially 52 days a year to create reports and other financial management tasks.
Security Controls
One of the concerns with outsourcing is ensuring tight data security with payroll records. All payroll services ensure industry standard are met with data security. Outsourcing of payroll also allows for separation of duty for the internal accounting staff, and for the confidentiality of employees’ salaries and employment benefits.
Grows With Your Business
Outsourced payroll services are very streamlined and flexible. This means if you hire lots of temporary staff or are in a high growth period you can rest easy while your records and compliance is maintained by a payroll service provider. It grows with your business. This flexibility allows for expansion or if needed contraction of your business.
Regulatory Compliance
There are hundreds of laws regulating payroll. Just keeping up with payroll compliance is time-consuming and requires regular education to ensure your business payroll is legally compliant. Payroll providers have access to the ATO and Fair Work systems, to keep on top of new amendments and changes to ensure your business is complaint.
Need Help?
We handle payroll accounts for businesses of many sizes. If you are wondering if this is a good option for you please get in touch by booking your free consultation here.