Outsourcing Payroll – 5 Things You Really Need to Consider
In the business world, time is of the essence. You haven’t got much to spare and saving time is almost as important as saving money. There’s no doubt that payroll eats up its fair share of your precious time. That’s why many businesses decide to outsource their payroll to an external company or to their accountant. Outsourcing can be a great time saver. However, you need to consider what an outsource provider is going to do for you. Here are a few things you should consider:
Do you require a tailored service?
Before you even pick up the phone to an outsource payroll company, you need to decide what you want them to do for you. Once you know exactly what you need, you can then go about finding a package that suits those needs. If there isn’t a package that fits the bill, then don’t settle for second best. Instead, ask if they can tailor a package for you. If they can’t, look elsewhere.
Does the company have experience with your business?
Ok, so if you haven’t used them before, then they’re not going to have experience in particular. However, there are going to be other businesses of similar size and structure to yours, and this is what we’re concerned with. You should always use a outsource provider who has dealt with a business similar to yours. That way, you know that they can handle your demands.
Will they be able to deal with change?
If you’ve been a business owner long enough then you’ll know that nothing stays still. Changes happen, and they can happen fast. Therefore, you need to ensure that your outsource payroll provider can handle these changes. Expansion is a very real change that happens to many businesses. So, if you don’t ensure anything else with your provider, at least ensure that they can handle expansion.
Do they have hidden charges?
Outsourcing your payroll comes at a price. There’s no doubt that the time it can save your business (and the money on employees etc.) can far outweigh the cost of outsourcing. However, you need to know what outgoings you have to plan and budget your business. So, you need to ensure that the pricing is clear and that there are no nasty hidden charges lurking in the small print. A good company will be completely honest about their pricing.
Are they using compatible software?
Well, this is probably the most important of all considerations. If the outsourcing company does not use software that’s compatible with yours, then you’re not going to have much fun when you’re trying to file and store all the data they send you. Only use a company that has compatible software, simple as that!