Payroll can be a time-consuming and arduous admin task, where mistakes have consequences. Running a business is important and it deserves someone’s full attention. However, business owners often struggle to give this focus as they have many other tasks to handle.

Here are some reasons that growing business owners should look at outsourcing their payroll function.

Reasons for outsourcing payroll

1. More time

Payroll can be a daunting and time intensive task, one that only gets bigger as a company grows and gains more employees. Outsourcing payroll allows business owners to focus on what matters: growing their business. This helps them find new ways to make money. It also creates a more cost-effective way to divide work.

2. Minimising errors

Employees expect to receive their pay on time and correctly. If payments are wrong, it can hurt their finances. It can also damage the relationship with their employer. This breaks an important trust between both sides.

Outsourcing payroll can minimise errors and help maintain a positive employer-employee relationship.

3. Staying compliant

Payroll providers use processes and software to reduce payroll errors. This ensures that all taxes and NI contributions are correctly accounted for. Doing this without the necessary expertise or procedural know how of an outsourced provider could result in issues for both employer and employee if tax has not been properly accounted for.

4. Enhanced data security

Outsourced payroll providers will also deal with another area of compliance: data security. As dedicated and knowledgeable experts in their field, they will have knowledge of the requirements for proper data security when it comes to payroll data, protecting business owners from another area where mistakes can be extremely costly.

J Sweeney Accountants have a managed payroll service that is perfect for growing SMEs and can scale with your growth. Contact us on 01604 950034 or email us at [email protected] to learn more.