Ask any entrepreneur about the challenges of managing a business and they’ll tell you their number one concern is time. A business owner wears many hats: CEO, CFO, business development, head of human resources, and everything else in between. There aren’t enough hours in the day to effectively work on business development while keeping track of payroll and employee issues at the same time.
Some would say this is just the nature of SMEs, but there is no need for one area of the business to suffer on the expense of another, especially when that area is payroll. Many businesses initially in-house their payroll processing because:
- They think it’s less costly than outsourcing
- They are protective of salary information
- They want to maintain a level of control on their data
In reality, many SMEs may be better off outsourcing their payroll, especially with a trusted partner that prioritizes confidentiality, accuracy, and quality service. Many SMEs may not have the expertise to handle their payroll processing. In addition, they may not have the resources to hire a dedicated person just to manage this function. More importantly, a business owner’s time and money can be better spent focusing on business strategy than payroll processing. Not to mention worrying about staying compliant with tax laws and regulations.
When considering outsourcing your payroll, think about these benefits:
Save Money
- Instead of hiring a payroll officer or a finance professional to handle this HR function, you can outsource the entire process at a lower cost that can be calculated based on the number of your employees
- Staying compliant with income tax and social security laws means you’ll avoid fines that can cost your company thousands of dollars
- By outsourcing your payroll, you no longer need to spend time managing this area of your company so that you can focus on other important aspects, like generating more business
Save Time
- How many hours do you spend calculating payroll each month? And if you have to keep track of part-time and full time employees, it could even take you longer. This process can be managed for you each month with detailed reports to keep your accounts updated
- Signing and distributing paychecks can also take a lot of time out of your day and it may not always get done at the same time every month. With a reliable partner, you can rest assured that salaries go out the same time every time
Higher Levels of Information Confidentiality and Security
Even with reliable employees, payroll processing does come with some risks, both internal and external. That is why you need a partner with powerful technology and state-of-the-art security protocols. When outsourcing, you will receive:
- Dedicated professionals managing your payroll with confidentiality
- Strict information-handling policies and procedures
- Extra internet security measures to protect valuable company and personal data
- Redundant back-ups to keep all your information stored on multiple servers
- The most technologically advanced tools at your fingertips such as a mobile app, relevant reports and dashboards
Accuracy, Efficiency, and Service
When outsourcing payroll, you’ll need a partner that is a specialist, someone who understands the complexities of your business, and also has a deep knowledge of local laws and regulations. When you outsource your payroll function, you will:
- Take advantage of payroll specialists who input your data accurately and double-check for any errors. This ensures accuracy and cuts down on employee complaints and inquiries
- Gain access to payroll services from anywhere and at anytime, so your employees can view their pay slips through their mobile devices or online, which is great for your younger employees
- Save time and money, making your organization more efficient and setting it on the right track for growth
- Receive a dedicated quality service team ready to handle your employees’ inquiries and requests. By improving employee service, you will position your company as an employer of choice
As an entrepreneur, your time is best spent focusing on the strategy of your business, not worrying about HR transactions. You need a partner that can be trusted with your information, a partner that works with you to meet your specific needs, and most importantly, a partner that grows with you.
Karim Mubarak
Co-Founder & Managing Partner