There’s no doubt that businesses need to reduce costs in the current climate, particularly as the spectre of Brexit continues to loom large over the UK economy.
This applies across multiple sectors too, with retail sales falling far below expectations during January and profit margins being squeezed as the cost of importing raw materials increases.
Outsourcing payroll is an excellent way of reducing costs in your business, without compromising on its output. In this post, we’ll look at some of the additional benefits of outsourcing your payroll in 2018:
Outsourced Payroll Saves Time
In addition to money, outsourcing payroll can also save you considerable amounts of time. This is particularly true in the modern age, where payroll processes have become increasingly complex and time-consuming.
So, by outsourcing the management of your payroll to a reputable expert, it’s possible to afford your HR and finance teams the gift of time and empower them to pursue more strategic business objectives.
This is central to the long-term development of small businesses, as key stakeholders can focus on improving workflow efficiencies while leaders strive to refine their sales and marketing efforts.
Outsourced Payroll Leads to Improved Data Security
There’s a huge amount of risk that comes with in-house payroll, particularly in an age where identity theft remains a significant challenge. Even with advanced payroll management systems and encryption, employee records are accessible to stakeholders and any individuals associated with the business.
Outsourcing your payroll negates this risk, by ensuring that all data is stored on large-scale and highly encrypted servers that leverage cutting-edge technology. Service providers also assume responsibility for the protection of your data, meaning that they’re empowered to guarantee its integrity at all times.
This is a huge consideration, especially with the EU set to launch the new and more stringent GDPR data protection guideline in May.
Outsourced Payroll Drives Legislative Compliance
This leads us neatly onto the subject of compliance, as all British firms will need to comply with the regulations laid out in the GDPR as per the terms of the UK continued EU membership. Failing to comply with this, along with additional laws relating to minimum wage remuneration and tax requirements, can cost your business hundreds and thousands of pounds in sanctions.
This requires a huge amount of knowledge, but outsourcing the management of your payroll enables you to access such expertise without altering the infrastructure of your business.
Remember, payroll firms are founded on the real-time knowledge and understanding of tax law, while their systems and procedures have been structured to reflect legislation. In the unlikely event of any mistakes being made, they’ll also correct these while handing any subsequent compliance fall-out.