Watch Out! The Risks and Myths of Payroll Outsourcing

Outsourcing is the latest trend in the UK accounting sector, and accountants simply cannot stop talking about it. Looked upon as the advent of numerous opportunities and the most viable solution to modern accountancy problems, outsourcing is here to stay. In this blog, we will look at payroll outsourcing and address the risks and myths associated with it.

There used to be a time when most of us were shocked in the aftermath of Edward Snowden or Julian Assange blowing the whistle on some of the most high-profile scandals of our lifetimes.

Yet somehow, none of that fractured our sense of shared reality as much as being alive in the current era. We were shaken by the shoulders to come to terms with the rampant misinformation, openly untrue allegations, and infectious manipulation. And amid it all – fact was a lost cause.

The false sense of nationalism combined with the worsening tensions across the developing countries meant that one of the fattest targets of this resurfacing xenophobia in business is – outsourcing.

In 2017, IBM became one of the pioneer companies to have more employees in India than in America. In fact, many leading multinational corporations consider outsourcing an ethical, effective, and age-old solution to grow in the market. So, why do we end up marginalising anything that’s outsourced?

Often catering to our stereotypes and pre-conceived notions, these bits of fake news or myths blur the lines between what’s right and wrong. So, it’s important that we pick up the cudgels to go past the smokescreen and keep the endangered culture of propagating facts alive. Since payroll is such a widely outsourced yet scrutinised function, we’d like to dig into what’s a fact and a myth about payroll outsourcing services.

 

Let’s address the elephant in the room — particularly in the age of data breaches, figuring out how the provider plans to centralise and protect your client’s data could break you out in a cold sweat. On top of this, the post-GDPR times have made businesses in the EU more nervous about considering outsourcing, significantly impacting the UK payroll outsourcing scenario.

But here’s a fact: Many companies, including Facebook and British Airways, were responsible for their own downfall due to colossal data exposure and inadequacy in their in-house security measures in the past. Outsourcing providers, on the other hand, treat data security as one of their highest priorities and business standards.

When choosing a provider offering payroll services for accountants, make sure you do your homework to find out how data is secured or whether they meet the global standards of cybersecurity. Top accountancy offshoring firms use GDPR-compliant procedures and certifications to assure clients that data is processed ethically. Certifications also guarantee reduced chances of data breach and show a firm’s accountability.

 

Sometimes, small businesses are set in their ways mainly because there’s a lot at stake and a more significant impact in times of loss, particularly when it comes to experimenting with new avenues in their business functions.

Some might say in-house payroll is traditional or comfortable. But when subjected to careful, practical thought, multitudes of expenses like hiring costs, capital consumption, infrastructure costs, programming obtaining costs, and operational use are to be dealt with.

Moreover, outsourcing will oil a business’s regular functioning by a landslide. Payroll isn’t just about writing checks. Employers need to print, sign, and distribute checks, withhold employee taxes, and pay payroll taxes– a lot of time-consuming tasks. Payroll outsourcing could be a way for small businesses to focus better on developing their business than crunching those valuable hours on processing tax sheets.

 

A lot of myths are directly a result of some widespread rumours or our sense of insecurity and fears. Typecasting payroll outsourcing services as tailor-made for large conglomerate businesses would be stripping it off its true potential for helping small and mid-sized companies reduce costs.

Regardless of size, every company must ensure that it complies with regulations. An outsourcing firm providing payroll services for small businesses would be better equipped to handle complex tax regulations and stay up to date with laws unless you’d like to see your in-house employees spending their workdays rummaging through tax manuals.

For all businesses, big and small, payroll outsourcing is all about de-cluttering and re-establishing focus.

It’s true that we live in a time of scepticism, misinformation, and indifference. But we should use these tumultuous times to open our eyes and minds and not take things as they are. We should all be able to vet our facts, question rumours, and bust some myths from time to time.

Speaking of payroll, an accountancy practice can only progress and make its payroll service profitable when its management and internal staff accept outsourcing in its full glory. To make things easier and more believable, many leading payroll outsourcing services providers offer references, credible reviews and testimonials, and free trials for evaluation.

Dedicated and Risk-Free Payroll Outsourcing with QXAS

QXAS is a top UK payroll outsourcing provider with a dedicated staff of over 1000+ offshore payroll experts and a proven experience of more than twelve years. We specialise in customised staffing solutions that can negate your business’s talent gaps and improve its capacity to scale.

We understand the risks associated with payroll processing and information sharing in today’s risk-prone world and therefore provide the guarantee of GDPR and ISO 27701 compliance. By choosing us, you choose quality and information security in your payroll functions.

To explore our services in detail or understand how QXAS can transform your business by making your payroll profitable, drop an email at [email protected], call us on +44 208 146 0808, or log on to Outsourced Accounting, Bookkeeping, and Payroll Services | QXAS UK.