Business owners often waste quite a bit of time and energy handling activities that they could just as easily outsource, including payroll services. When you have the head of the company (or some other skilled person) working on something that doesn’t bring in a profit, it doesn’t help to add anything to your bottom line. If you can do it, outsourcing payroll services not only helps to free up resources, it ensures that there won’t be mistakes or anything that goes against the law.
Why then are so many people hesitant to outsource their payroll services? It is because they don’t see the potential in doing it and rationalize it as something they don’t have time to do. Is it worth all of that extra time and effort in the short term just to find someone that you feel comfortable working with in that way? Someone who can get an inside look at your company’s financials? Someone who won’t tell your secrets to their friends in the same niche?
In our opinion, it is well worth it.
Outsourcing payroll services helps with three main goals:
- It frees up resources at the highest levels;
- It ensures payroll is performed correctly;
- It reduces risks and mistakes.
Outsourcing Payroll Frees Up Resources At The Highest Levels
Payroll is a necessary function of any healthy business. However, if it isn’t handled properly, it can put your business into the trouble zone. Payroll zaps away the attention, energy, and time from core activities that have a more significant impact on your business. Companies have to pay attention to various complex laws when it comes to employees at the federal and local levels. In South Africa, for example, these laws and regulations can change with little notice.
Of course, taxes are just the start of what you need to do – even though they should be one of your biggest concerns. If you get taxes wrong, you may put your employees and your company in danger. There is more that you have to concern yourself with: new-hire reporting requirements, government requirements around unemployment compensation, and workers compensation insurance.
It Ensures Payroll Is Performed Correctly
One of the biggest reasons to outsource payroll services is because you will get access to experts who know the laws and regulations and who have the technology to keep everything on track. For a small business or even a medium-sized one, it can be difficult to invest in these programs and tools that can be quite expensive.
Employees expect things like direct deposit and self-service access to their payroll information – this is no longer something that is considered a perk. If you cannot offer it to them, you are doing your employees a disservice and perhaps even limiting the client pool for open jobs.
Payroll Services Reduce Risks and Mistakes
Outsourcing payroll can also reduce risks for the business. Mistakes are far more common than one might expect, and companies are losing money quickly. These losses may be because of bookkeeping errors, discrepancies in timesheets, and even in pay rates. Of course, there are also risks to making mistakes – legal risks and reputation risks.
Making these “silly mistakes” can be extremely harmful in ways that most people don’t even realize. One mistake can cause you to miss out on good employees and even cause the general public to have a negative opinion of your business.
There are many places where you can make mistakes and use it as a learning experience, but payroll is one place that you don’t want to do that – one mistake could be the end.
Outsourcing Payroll Administration in Johannesburg
If you are interested in outsourcing your payroll services with a company that you can trust, look no further than IC Quantum. Our team of accounting experts uses the latest tools and technology to stay on top of your payroll and ensure that your books are accurate.
Payroll administration is just one facet of our business services, which include auditing, business planning, taxation, and more. Are you ready to get started? Call us at +27 87 980 0000 or send an email to firstname.lastname@example.org to get more information.