You’ve probably already considered outsourcing your payroll to an external specialist or accountant – it’s becoming ever more popular among business owners, and I’ve been asked about it multiple times in the last week alone.
It’s particularly useful for businesses that are seeking to streamline their operations, reduce costs, and ensure compliance with ever-changing tax regulations.
Around 28 per cent of small businesses in the UK outsource their payroll to an external partner and this number is continually growing.
Those that do outsource their accounting and payroll functions often see the following benefits:
- Cost savings: It eliminates the need for in-house payroll staff, along with the associated expenses of salaries, benefits, and training. Moreover, by entrusting payroll to specialists, you can avoid the costly errors that often arise in manual processing.
- Time efficiency: You can save significant time by outsourcing payroll, and free up valuable resources for other critical aspects of your business.
- Error reduction: Payroll errors can be detrimental to employee satisfaction and your company’s reputation, but payroll experts are trained to prevent these common mistakes.
- Scalability and flexibility: It accommodates expansion without the need for internal restructuring or additional hiring.
However, the advantage that outsourcing actually provides goes much further than these initial benefits.
The unspoken benefit of outsourcing
When people ask me about the advantages of outsourcing payroll or accounting, I always say something along the lines of: “Yes, you get more time to run the business, it’s more cost-efficient and it reduces the chance of errors, but the real benefit is the expertise that comes with it.”
I stand by that statement.
To reiterate: The real advantage that outsourcing offers is having a seasoned and experienced financial professional on your team.
By outsourcing you are not just bringing in a specialist to handle your payroll in the shadows – unless you specifically want that – but you are bringing in the expertise of that professional and integrating it into your wider business strategy.
They can give you advice on making your business more tax efficient, cutting costs and staying compliant with employment and tax law.
These individuals are a major advantage over your competitors if they’re managing their payroll on their own.
Trust me, it’s worth it
I have been advising our clients on their payroll for years and I can tell you that it’s absolutely changed many of their businesses for the better.
They have managed to cut costs, increase their profits and it has given them peace of mind that would otherwise be unachievable.
I haven’t met a single business owner who has regretted their decision to outsource either their payroll or their accounting responsibilities.
For more information on outsourcing your own payroll, please don’t hesitate to get in touch.