Topics: Benefits of Outsourcing, Payroll, Payroll outsourcing

7 Reasons Why You Should Outsource Payroll Services

3 MIN READ | Posted on December 22, 2021
Written By Rukmani Krishna

Payroll Outsourcing

Have you started thinking about your payroll outsourcing strategy yet? If not, NOW may be a good time to start.

With the ever-changing landscape of statutory and regulatory requirements, payroll management has become significantly complicated over time. Furthermore, due to the complex nature of UK laws and legislations, accounting practices have found it challenging to stay on top of payroll compliance. Unfortunately, payroll errors are costly and can result in hefty fines from the HMRC. So, it’s doubly important for practices to have accurate and reliable payroll management in place.

Of course, managing it all in-house is always an option. However, it’s important to note it can be time-consuming, prone to errors, and administrative-heavy. Additionally, managing payroll in-house will take away time from critical tasks. In such instances, outsourcing payroll to an offshore specialist like QXAS can be extremely advantageous. Here are 7 reasons why you should consider outsourcing your payroll function.

Benefits of Outsourcing Payroll

  1. Lesser compliance issues: It can be extremely confusing and challenging to stay up-to-date with ever-changing laws and regulations. Incorrect payroll reporting can lead to huge penalties from the HMRC. Outsourcing can help reduce or even eliminate these compliance-related challenges. Payroll specialists are up-to-date with ever-changing laws and regulations, thereby ensuring compliance and accuracy in payroll management.
  2. Time and cost savings: Outsourcing your payroll function can bring in significant cost savings. In-house payroll management involves a lot of overhead costs, such as recruiting, hiring, training, and so on. Outsourcing will take away all these additional costs and offer savings in the long run. It’s also important to note that payroll is an extremely time-consuming and administrative heavy task. Managing payroll in-house will take away most of your time and efforts. By outsourcing this function, you and your employees will have more time on your hands to focus your efforts toward higher-value tasks, like advisory services.
  3. Access to expertise: With payroll outsourcing, you get access to experts in the payroll process. These experts can handle payroll functions such as calculating and submitting quarterly and annual payroll taxes, processing timesheets, creating and submitting reports to HMRC, handling statutory forms and year-end returns, RTI compliance and submissions, etc.
  4. Latest tools and technology: Payroll outsourcing companies are often up-to-date with the latest tools and technology. In fact, many providers often have dashboards that can monitor various payroll-related data from leaves to deductions to employee morale. These tools can be costly to purchase and manage in-house. With outsourcing, you’ll gain access to the best payroll management tools in the industry at no additional cost.
  5. Enhanced security: If security is a concern for you, then choose a payroll outsourcing provider that adheres to global security protocols. Most providers will employ multiple server locations and data encryption on state-of-the-art systems to store and protect data.
  6. Scalability: It can be challenging to scale your practice without proper support. Furthermore, recruiting, hiring, and training accounting specialists can be expensive each time you expand your practice. With outsourcing, you’ll be able to effortlessly scale your practice without the need for hiring in-house staff. Outsourcing specialists can take on more work at a short notice, which will significantly benefit your business as it scales up.
  7. Enhanced quality and accountability: Payroll outsourcing service providers are focused on delivering the highest quality work with the fastest turnaround time. They also have best practices in place to ensure enhanced performance, quality, and speed. With the assistance of a payroll outsourcing partner, your payroll tasks will be done accurately, without error, and with accountability.

Conclusion

Deciding to outsource your payroll function can be challenging, but once you warm up to the idea, you’ll find that there are several benefits you can gain from this move. In the long run, outsourcing your payroll function will bring significant cost savings, free up more time for higher-value tasks, and improve compliance.

Thinking of outsourcing your payroll function?

QXAS is a seasoned outsourcing provider with several years of expertise in payroll processing. With our assistance, your practice can reduce costs in the long run, gain access to our payroll expertise, and be assured of enhanced data security.

Learn how QXAS boosted payroll efficiency and reduced costs by 50% for an accountancy practice here.

Reach out to our payroll experts at [email protected] or call +44 208 146 0808 for any of your payroll outsourcing queries.

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We hope you enjoyed reading this blog. If you want our team to help you resolve talent gaps, reduce costs and transform your business operations, just book a call.

Rukmani Krishna

After a short stint with journalism, Rukmani found her calling in content. From content writing to content editing and now content marketing, she has worked in several content-related roles across sectors, such as business news, general news, online education, and digital therapeutics. Currently, she’s focused on creating relevant and useful content for accountants to help them better navigate their outsourcing journey.

Originally published Dec 22, 2021 01:12:59, updated Dec 22 2021

Topics: Benefits of Outsourcing, Payroll, Payroll outsourcing


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