Sound reasons why you should outsource your business’s payroll

The most important thing for a growing business is to control costs while maximising revenue. This often means putting cost control practices such as insourcing in place. While insourcing of certain business functions is typical and often recommended in the earlier cash-strapped days of a business, you can’t assume that all business functions should be insourced.

For instance, payroll is one function every business should do its best to outsource. It’s a critical part of keeping a business running and deserves the undivided attention of a qualified expert. Here are more reasons why you should outsource your business’s payroll.

The benefits of outsourcing your payroll

Make room for growth

The problem with insourcing your business’s payroll is that there’s a good chance you might implement a makeshift system that isn’t scalable. A whatever-works-for-now approach is common when a business is starting out, but that’s not advisable. Eventually, your workforce will outgrow the spreadsheet you’ve been managing yourself and jeopardise the business’s capacity to grow.

Focus on core business functions

Payroll is a non-core business function. A core function is an essential business activity that is a critical contributor to your revenue and distinguishes your business from the competition. While it’s essential, payroll does not contribute to your revenue nor does it set you apart from your competition. By outsourcing your payroll, you free up valuable time and resources that could be used to sharpen your core functions.

Improved data security

Payroll data is highly confidential. Among many other possibilities, it comprises information that can be used for identity theft or to embezzle from your business. Managing payroll in-house simply poses too high a risk for your business and its employees. Outsourcing payroll not only guarantees the security of your data, it ensures that your business always keeps and protects all the documents necessary for compliance.

Qualified accounting expertise should always support your business’s operational efficiency. You get the benefit of reduced overhead costs, an optimised and scalable payroll strategy and peace of mind knowing that your business’s payroll involves no guesswork. Speak to us and we will cure you of your payroll headaches.

We have a highly capable team of bookkeepers and accountants who are skilled at handling the payroll needs of SMEs. Whether you need consulting services or accounting software such as Xero Accounting Software and QuickBooks Online Accounting, we have the answer for you.