Why You Should Outsource Your Payroll

Outsourcing your company’s payroll to a trusted and professional small business accountant affords many benefits.

The obvious ones are saving time and reducing the risks of falling foul of the law, but there are other advantages too.

Almost two-thirds of UK businesses outsource their payroll to an external accountant, who can provide expert support, while allowing you to retain control. A payroll error can lead to serious consequences, so it’s safer to pass the mantle to a professional.

Choosing the right payroll provider

Employing an external accountant specialising in payroll services is a big step in your company’s journey, so it’s crucial to make the right choice. It’s far more than simply finding a professional: it’s about choosing someone who will understand the industry, your business and its unique needs.

Ensure your chosen service provider is equipped to handle your requirements, whether you’re responsible for a small business payroll with relatively few employees, or a larger enterprise with a few hundred.

A good accountant will update their software regularly to improve functionality and ensure compliance. They will also take measures to ensure your security is never compromised when it comes to filing sensitive information. They should be able to integrate seamlessly with your current accounting and HR systems to improve efficiency and simplify processes.

Benefits of outsourcing payroll

It can take a lot of time and effort dealing with wages if you’re not an expert accountant, detracting from the important task of running your business.

Reducing the risk of your company being non-compliant with the ever-changing HMRC legislation, this can have very serious consequences, including hefty fines, so it pays to get it right.

Almost half (49%) of small and medium businesses who outsource payroll say they do so to ensure compliance with the law, describing legislation as a “minefield” because it is continually being updated.

Outsourcing can be a more cost-effective solution than in-house payroll management, as you will save money on hardware, software, ongoing system maintenance and payroll personnel costs. Around 32% of SMEs say outsourcing is a more cost-effective payroll solution than processing it in-house, according to surveys.

A professional accountant will have the latest online tools and streamlined processes that will enable fast and accurate payroll processing. This is preferable to a company manager trying to juggle payroll with dozens of other tasks and it will also ensure that payroll is completed accurately and in a timely manner, so you can relax in the knowledge there won’t be any errors and your staff will always be paid on time.

A payroll error that causes late salary payment leads to unhappy employees and damage to your reputation as a business: people tend to vent on social media if they are disgruntled because they haven’t been paid. This can soon escalate and leave customers speculating whether you’re in trouble, causing them to lose confidence.

Outsourcing can make it easier for your business to grow, as your payroll specialist can ensure there are no issues if there’s a sudden influx of new employees on the books. This can be invaluable if you run a seasonal business where fluctuations occur and temporary or agency staff are taken on at certain times of year.

A professional accountant can also help with other aspects of your business, such as compliance with the law - something no-one can afford to disregard.