Should I outsource my payroll systems and processes? This is a question every business will have asked themselves at some point. When it comes to payroll systems and processes, you have two options: find a software that will handle payroll that suits you, or outsource your payroll services to an accountant.
When finding software to handle your payroll for you, you need to think of a number of things.
Firstly, will the software package you purchase cover ALL of the services you require?
Secondly, will this software hold up to the legal requirements required? This includes pension, PAYE, national insurance and minimum wage.
When it comes to purchasing software for payroll, more often than not, you either have to purchase the entire bundle — which may be out of your current budget — or have to settle with a ‘basic plan’, which could leave you missing vital aspects that are valuable to your business and safely employing others.
This may seem like a cheaper option for a small business. But, if you think of it in the long term, it may leave you with a bigger headache than when you had originally started.
On the other hand, if you outsource your payroll to an accountant, the benefits of this can make a huge difference not only to you but also to your employees. Here are just a few advantages of outsourcing your payroll:
1. An Accountant can be cheaper than software in the long run
It may be a little daunting to think of outsourcing your payroll services outside of your company. Think of it as having someone who has vast knowledge and understanding of pensions, PAYE and minimum wage requirements without needing to spend the time onboarding a new employee solely for accounting purposes. And this accountant will have their own pricing package, so you will have already added their cost to your budget.
2. You don't have to spend time learning new skills that you don't have time for
It can be time consuming to try and learn a new skill that you have never needed before; while you’re trying to understand pensions, etc., you could be focusing your attention on developing your business further.
3. An Accountant will keep everything organised and up to date for you
While you’re focusing on your business, an accountant will be there to ensure your company meets filing deadlines, which will help you avoid fines. Of course, no one wants to be given a fine. But the point I want to highlight is that from trusting an outsourced accountant, you have an actual human whose purpose is to meet these deadlines for you in comparison to software that may or may not unexpectedly break down.
Whichever option you choose is entirely your choice. But if you are interested in taking the pressure off of yourself and outsourcing payroll services, I provide a 30-minute introductory consultation where we can discuss the different options available to you that will benefit your business.