To many start-up businesses, the world of pay and tax is probably the biggest obstacle from turning a business dream in to a reality.
This is why most companies now choose to outsource payroll work along with other areas of their accounting. There are many benefits to outsourcing payroll to an external company. Some of the key elements are:
No in House Position
Having your own in house bookkeeper can prove costly; the average bookkeeper can cost a company from £35,000 per annum upwards. Obviously this is a cost that many midsized businesses cannot always necessarily afford straight away.
If a company outsources its payroll, it can look to make substantial savings compared to having an in house service. As well as the cost of outsourcing being lower in many cases, there are no hidden costs often found through employing and providing benefits for a member of staff.
Companies often face problems when an in house employee has to go sick or is unable to complete their work for whatever reason. External payroll companies will have support mechanisms in place to be able to process your pay whatever happens.
The secret to a happy work place is happy staff. Issues with payment are often the lead cause of upset between staff and their employers. Outsourcing your payroll means companies can offer services such as direct deposit to bank accounts and tax consulting. These services are normally exclusive to larger companies but they are services employees will really appreciate.
As any sized business can profess the hardest element of running any company is being aware of the many regulations that affect them. This issue is no different when it comes to the world of taxation and pay.
Slight mistakes regarding the filing of a tax return could cost a company a great deal of money in fines. It is common with outsourced payroll that built into a company’s contract there are guarantees against these fines affecting the client.
Also due to the size of these outfits, a company can be assured that the outsourcers are up to date with any developments in the field of accounting and taxation.
If a company chose’s to outsource its payroll, certain payroll companies will offer the option of reports. If your company is suffering from high costs on overtime or for a particular client these reports can help to highlight problem areas enabling swift action.