Key Advantages of outsourcing your payroll:
With small to medium enterprises accounting for a whopping 99.9% of the UK business population, according to the Federation of Small Businesses, it’s common to find employees juggling multiple roles. If your sales executive is also your IT guru, and your HR manager has to wear their ‘accounts’ hat daily, then you’re not alone.
While your typical managing director might be a whizz with their business plan, knows their profit from their turnover and is clued up on assets versus liabilities, you might be wondering why outsourcing payroll is a huge growing accountancy trend?
Time is money
The number one factor when resources equate to money. Meeting your obligations to HMRC and of course, your employees takes a significant chunk of work. This gets complex when you’ve got a mix of monthly, weekly and even bi-weekly payrolls to balance. When you’re factoring in monthly tax deductions or benefits, planning for how your staff are compensated needs to be aligned with your business plan.
Even after you’ve gone through the painstaking effort of selecting, hiring and training an account professional, there’s still the hefty legislation to keep track of. Your finance team need a continuous finger on the pulse to ensure you stay on the right side of regulations. 2018 saw an increase in statutory sick pay (SSP), gender pay gap reporting for the public sector and an increase in the national minimum wage (check out the Gazette for any major changes, https://www.thegazette.co.uk/all-notices/content/103400). Missing or overlooking changes in employment law can have severe consequences for inattentive companies.
Holiday pay, annual leave, staff workflow and the dreaded tax calculations. It’s all connected to payroll. It’s vital that your teams are communicating with each other to ensure it all runs smoothly. An excellent outsourced service will give you the option to manage all of the above as flexibly as you need. More importantly, a comprehensive system should put data security at the forefront of it all, ensuring confidential data is accessible to you but securely stored. Riz & Co tailor a payroll capacity to suit you, but also offer an employment law specialist to help fix those daunting tasks you need a little extra help with.
One less person
We’ve broached the subject of nominating a current member of staff to expand their duties to cover payroll and although it’s definitely an option, you’re again either deciding between adding (considerable) extra workload to a person or spending extra resources hiring and maintaining a new member of staff.
Automation has had a considerable shift in the workplace, and there’s no exception in the finance world. Manual payroll takes considerable time and effort, whilst computerised systems can effortlessly combine timekeeping, wage deductions and calculations plus pension data in one calculated, precise service. As automation is becoming a trend for employers to see how certain processes can be smoothed out, real-time accounting is being streamlined and simplified.
Investing in innovation
Hot on the heels of automation, technology is changing the way we pay our staff too. Digital trends once in the realm of IT are now affecting accountancy professionals, which means increasingly financing changes we might not expect. Mobile and paperless initiatives mean cutting waste and improving workflow, with on-demand reporting and payslips sent to mobile devices. The emergence of the cloud (or off-site data hosting) means balancing security, privacy and compatibility issues together to produce a reliable, precise payroll system that works for you. With increasing costs, many professionals turn to outside experts to develop a uniquely tailored service that has the benefit of cutting-edge technology but with reduced overheads.
With SMEs clearly making up the bulk of the UK business population, it pays to focus on streamlining your payroll efforts into a hassle-free process. Switching and migrating to an all-in-one solution couldn’t be easier. We offer a free, no-obligation meeting to discuss your needs and devise a bespoke system to work alongside your objectives. Call Riz & Co to have a chat with our friendly team.