Top 3 Reasons Why Payroll Outsourcing For SME is Important
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The two most important resources to any business are time and money. Especially small businesses and startups should ensure spending these wisely. SMEs should be focusing their efforts and energies on revenue-generating and profit-making activities. However, they usually get stuck in managing their non-core functions rather than pursuing their core objectives.
Business consultants have long advocated outsourcing non-core functions. Though essential to business, administrative and back-office activities such as payroll are non-core functions. Such functions are better off being outsourced rather than killing your valuable time while costing you considerably.
According to CPA firm Clayton & McKervey there are many long-term benefits of outsourcing payroll.
“… a company had one person performing all of the payroll processing functions. The company is now outsourcing the functions as a result of thinking ahead. They chose to outsource the functions to reduce the risk of the payroll not being processed, to manage growth by anticipating the increased payroll responsibilities that will be required as the firm grows and hires more employees, and to keep up with technology, such as pay cards and direct deposit.”
How Payroll Outsourcing for SME works for you?
Payroll services for small business offered by service providers are solely aimed at saving a client’s time and money. Payroll outsourcing firms offering smart HR payroll solutions completely understand a company’s reason to outsource payroll and have come up with customized services specifically focused on small businesses.
Payroll outsourcing for SME can actually be a huge relief to small business owners. Apparently, any small business owner tends to wear too many hats at the same time. But as the business grows this becomes more and more impossible. The processes start becoming more and more complex. This is the time when small businesses should consider the advantages of outsourcing. Payroll outsourcing India is fast developing and adjusting to the needs of SMEs.
Whether you are a start-up or have a considerable strength of employees, the customized and value based small business payroll services can benefit you immensely. Online payroll services have made it much easier to leverage such benefits. Just think about the cost that you spend on hiring payroll professionals, getting required software, regular updated versions of software, technical support, maintaining and securing database – Business experts suggest that you can instead be investing this money and the time involved on your revenue generation activities.
As the owner of a small business, your goal is to dedicate as much time as possible to your service or product. But getting stuck on payroll process is not going to serve that purpose. Small business owners usually underestimate the amount of time it takes to do payroll no matter how many employees they have. Processing payroll, preparing paychecks, calculating withholdings, filling forms and filing tax – all this can be too demanding, especially if you are not familiar with payroll regulations.
Talking about the significance of payroll outsourcing, payroll system outsourcing achieves three main goals:
1. Save your time and resources allowing you to focus more on your core business
Every business has limited resources, and every business owner has limited time and attention. Payroll processing outsourcing can save a lot of your precious time that you can use to focus on more important value-adding and revenue-generating functions. You can easily free up your and your employees time by letting an expert payroll service provider handle things for you and relieve yourself from the tedious administrative and routine overheads.
2. Give you access to most advanced technology and domain expertise
A constant nagging question for small business owners is whether they have the latest version of payroll software or the most recent tax tables installed on their computer. You can easily avoid such problematic situation by letting a payroll outsourcing company take care of it. They use the latest software programs for payroll processing and tax computation, thus minimizing errors and delays. Also your employee data stays protected through an authorized control panel that you can access anytime.
3. Reduce your payroll cost and financial risks
Inappropriate payroll management could lead to inaccurate tax filing resulting in tax penalties. Payroll outsourcing for SME can save you these hassles and ensure accurate payroll processing. The best part is that third party payroll companies provide tax guarantee benefits, which means if they file or make payments late, it will be they who will be held responsible for covering the cost of penalties. Of course, there is cost involved in outsourcing payroll as well but the cost and time you spend on in-house payroll can be way too high.
Involving a third party payroll service provider can be highly beneficial for your small business. Make sure you involve a payroll company that is experienced and trustworthy. A leading name in the business, TCF can be your ideal payroll partner. TCF offers payment processing and payroll solutions designed especially for small and medium-sized businesses. They are excellent at taking the hassle out of payroll and payments so their clients can focus on the success of their business.
TCF has joined hands with ADP® offering payroll, tax processing and HR tools through ADP’s RUN powered by ADP® payroll platform. It’s fast, easy and affordable, and is designed specifically for small to midsized businesses like yours. Their HR Business Advisors and 24/7 payroll support help you to ensure that your business runs smoothly.
Similar to TCF, Intero also offers reliable payroll services. The company is currently catering to several clients in government, manufacturing, hospitality, real-estate and infrastructure industries.
Paysquare is another payroll expert. Their client portfolio encompasses reputed names such as ITC, Kirloskar, Fiat, Atlas Copco, Johnson Control, Hitachi Consulting, Kimberly-Clark, Marico, Coca Cola and JCB.