The payroll is something that has been around since the beginning of trade in civilizations. For as long as trade and business have taken place, there has always been a need to maintain records of employee payments. The importance of payroll processing lies in the fact that payroll and payroll taxes affect a company's income to a significant level. However, it can be a painstaking task and one that requires a great deal of precision and attention. Payroll outsourcing services have emerged as the solution for SMEs, start-ups and larger companies to manage their payroll needs efficiently.
Why does your company need Payroll Outsourcing Services?
1. Concentrate on What is Important:
Every small business owner knows that the key to running your company smoothly is to delegate tasks. You can't do everything by yourself, and nor can your in-house team. As an SME or a start-up, especially, you need to be very choosy about how you spend your time and resources. Payroll processing is not a core function, and hence you should definitely consider letting others handle it. It is more important to focus on the crucial aspects of your business that need more care and attention.
2. Delegation Brings More Power:
Outsourcing your payroll requirements means that you no longer have to be accountable for the process. A dedicated payroll outsourcing services team will handle all the aspects of your payroll needs. They have not only the experience but also the added advantage of the relevant technology at their disposal. Moreover, when it comes to payroll compliances and laws, it is always best to trust the experts in the field to keep you up-to-date in order to avoid litigation.
3. A Smarter Way to Prioritize Your Time and Resources:
Payroll is not as simple as it seems from the surface. Companies understand this only when they delve into it themselves. There are arrears, incentives, paid leaves, taxes, attendance and overtime among other things to consider.
The beauty of outsourcing is that once you have done your research properly and assigned the task to a good service, you can be stress-free about the entire process. Certain outsourcing companies even offer to pay penalties for errors on their part. Whereas if you were to attempt to carry out in-house payroll processing, not only do you incur a financial loss, you will waste a lot of time fixing it as well.
4. Keep Your Company Data Secure:
As a small business or start-up owner, you may be wary of letting an outside agency handle your employee information. However, the chances of identity theft or embezzlement are much more if you hand over your finances to in-house staff. There is also the possibility that the payroll software you are employing, or your data network may be vulnerable to cyber attacks.
Professional payroll outsourcing agencies use extremely secure servers and state-of-the-art technology to store and protect your company's data. It would be difficult to replicate such security in-house without a big financial investment.
Many companies are on the fence about delegating payroll processing to an external agency due to various unfounded fears. The main deterrent among these is payroll outsourcing services cost. However, as we have already seen clearly, outsourcing actually saves your company money in the long run.
Payroll outsourcing in India is catching up slowly as business owners become more aware of its myriad benefits. The future of payroll outsourcing services in 2018 and beyond shows a positive growth trend.
The key is for companies to take advantage of this business solution and aim not to work harder, but to work smarter.