7 Benefits of Payroll Services for Small Business

Getting a small business up and running in the competitive business environment of the United Kingdom is no less than a big feat. Of course, while building and running it, you must have and still face certain challenges among them payroll complexities must be popping up frequently. The question is how will you deal with it. Either you can invest in your in-house payroll team to do the heavy lifting or you can outsource payroll services for small businesses.

There are many reasons behind the challenges in implementing payroll flawlessly such as keeping full compliance with the ever-changing payroll regulations, fully securing sensitive employee data from cyber theft, and the list goes on. All this can get quite stressful and it has the potential to divert your attention and resources away from your core business, which you cannot afford. That’s where payroll outsourcing comes to your rescue.

To get the best benefits of payroll outsourcing you have to select a payroll service provider and for that, you will need to have a good understanding of its benefits and things to ask while selecting a service provider. This blog will help you in that, let’s get started.

Benefits of Payroll Services for Small Business

Payroll services are increasingly being preferred by small businesses because of the benefits they offer. These important benefits can streamline your business operations, increase your employee’s satisfaction, and enhance your business productivity. Let’s go through some of the benefits of payroll services for small businesses to understand it better.

1. Saving of Time

How will you be successful in your business enterprise when most of the time you are involved in managing payroll? Yes, payroll can consume a lot of your time and it is getting increasingly complex.  While you can invest in getting the latest payroll software such as Sage, Brightpay, and Xero, to name a few, it will only add to your buying and training expenses.

Rather than getting bogged down in managing payroll tasks and getting payroll software, you can choose to outsource it to a payroll service provider. They have expertise in multiple payroll software’s that will help you automate payroll tasks enabling you and your in-house team to save time which can be directed toward your core business activity.

2. Maintaining Full Compliance

The payroll regulations in the UK are quite complex and handling such complex regulations requires a great deal of expertise from you and your in-house payroll team. These regulations and tax laws, set by HM Revenue and Customs, keep changing, and keeping a tab on it can be a challenge. Any non-compliance with these tax laws and regulations will lead to penalties and legal issues resulting in loss of reputation. Also, it complicates your employee’s payroll leading to their salary issues leading to demoralisation.

To avoid such problems, you can either recruit an experienced payroll team or outsource payroll compliance to a payroll service provider. They will keep a tab on the changes in payroll regulations and ensure full compliance, thus avoiding unnecessary legal headaches.

3. Increases and Maintains Accuracy

Accuracy matters when it comes to payroll after all you are dealing with tax calculations and employee payments. Any errors in it will lead to legal problems and dissatisfaction among your employees. To keep your employees happy, you will have to maintain a professional in-house payroll team that can maintain accuracy. However, for small businesses like yours setting up such a team will be an impossible task. That’s why, you will need the help of a payroll service provider. Through the professional service of a service provider, you can reduce the risk of errors in salary payments and tax calculations giving you peace of mind and allowing you to concentrate on your business.

4. Saving Costs

Saving on cost will be your top priority because it helps make your business products and services more competitive in the market. When it comes to saving cost in payroll it can be achieved by avoiding costly errors such as errors in tax calculations and non-compliance of payroll regulations. Such errors will only lead to heavy fines which cannot be afforded by your small business. Hence, it is wise to outsource payroll to a professional payroll service provider who is an expert in avoiding miscalculations and compliance issues.

5. Ensuring Data Security

While handling payroll, your in-house team must manage sensitive employee information, which cyber criminals could exploit if safeguards aren’t in place. Investing in end-to-end encryption and secure access controls will provide you protection from cyber theft but it is expensive and requires a great deal of training for your payroll staff to manage it. Professional payroll service providers always give data security the top priority through advanced tools. You can get access to these advanced security measures by outsourcing payroll and protecting your employee’s sensitive data from unauthorised access or data breaches.

6. Getting Access to Advanced Technology

The set of technology that your payroll team is using will become outdated as time passes by and keeping up with technology changes can be a challenge for your small business. As your business grows you will require advanced technologies to manage payroll complexities and volume. Through payroll outsourcing, you can get access to advanced technologies thus giving you the scalability to handle maximum payroll-related tasks without causing any disruptions and staying up-to-date.

7. Keeping Your Employee’s Satisfied

There are multiple ways in which you can keep your employees satisfied such as good pay, stress-free work environment, and benefits, to name a few. Accurate and timely payroll processing achieves the most motivation by ensuring employees receive their salaries punctually and accurately. In-house payroll teams of small businesses usually find it difficult to achieve it because of a lack of experience, but not the payroll service provider.

By outsourcing the payroll services for small businesses, you can get access to accurate and time-bound payroll services, thus reducing your stress, and enabling you to concentrate on your core business activities.

Now that you have gone through the benefits of outsourcing payroll services for small businesses, enjoying all these benefits is only possible once you select the right payroll service provider. Not to worry, we will help you in this endeavour.

How to Choose a Reputable Payroll Service Provider

To maximize benefits from a payroll service provider, choose one that meets your specific requirements judiciously. We have listed down certain points that make your selection task easier.

List Down Your Set of Unique Requirements

What does your business need from a payroll service provider? Decide on the set of requirements that you need from a payroll service provider such as full compliance with regulations, data security, and accuracy in payroll, to name a few. Based on these set of requirements set out to find the service provider that can meet your requirements.

Check for their Data Security Measures

Data security of your employee’s sensitive information is vital and you must choose a service provider that ensures its security. Always ask questions such as how they store, backup, and transfer the data. Check whether they are adopting the latest end-to-end encryption and secure access controls to stop cyber criminals from data breaches and unauthorised access.

Effective Implementation Plan

Do not take the functioning of a service provider for granted because that will affect the proper implementation. Always go through the implementation track record of a service provider, and check how they are going to support your staff during the implementation so that things run smoothly.

Start Planning Early for Adoption

Not everyone in your business will welcome change, which is why you need to plan for it. Start preparing early, as not just your people, but your systems and data must be ready. Getting stakeholder buy-in to purchase the solution is crucial in the initial stages. Use change management, transparent communication, and training to ease the transition for all levels of employees. Your chosen vendor must have experience in this crucial adoption phase.

Check Whether Your Service Provider Offers Future Plans and Collaborations

Choose a service provider that offers technology that can meet your future requirements. Also, choose a service provider that is open to suggestions from your side and is constantly innovating to meet upcoming business challenges.

Conclusion

Large companies and businesses are the only ones aware that managing payroll is a complex task suitable for in-house handling. Even sometimes they find it difficult to manage certain aspects of payroll such as dealing with complex regulations.  That’s why in this blog we making you understand the importance and benefits of payroll services for your business. Without it running your small business and managing your payroll would be an impossible task.

Also, we have taken the liberty to list down some points to follow to select a payroll service provider that can meet your requirements. We hope by following it you may find a payroll partner like Corient Business Solutions that understands your requirements.

Our teams have vast experience in multiple payroll applications such as Sage, Brightpay, Xero, Moneysoft, Earnie, Star Payroll, and several others. We design our services to give your business a competitive edge in the market. Upgrade your services by partnering with us and add value to your services. We also specialise in offering tailored accounting services such as Bookkeeping, Year-End, and VAT, to name a few. We can connect at your convenience on a call or online meeting where we can discuss in detail about our services.