4 reasons to outsource your payroll.
Do you find that managing the payroll for your business is time consuming? Are you so busy trying to get everything done you find yourself wishing you could offload the payroll processing to someone else, but you’re not ready to hire that person? Perhaps you’ve had to cut back during the pandemic and find yourself doing even more than you were pre-pandemic. If you’re still using spreadsheets, it’s time to move to a cloud-based system that will be far more efficient for you. The investment of a subscription is a relatively low cost and you’ll get far more value from it than you spend. If you’re using a costly server-based platform, then liberate yourself from being tied to your desk and move to the cloud. We can help you with both of these scenarios as well as taking the headache of doing payroll. The best news is that outsourcing the payroll function of your organisation will deliver so many benefits it’ll be hard to imagine why you didn’t do it sooner.
1. Save time and money.
The list of ways to save time and money by outsourcing is extensive. The first benefit comes with Cloud-based payroll systems. Updates to entitlements, leave and benefits are managed automatically, reducing administrative time and minimising the risk of missing legislative updates. Very often in small businesses, the person updating payroll details isn’t across legislative changes and payroll principles so mistakes are easily made.
Not to mention, there’s also a lot of time that needs to be spent on compliance, regulations and staff training, that cloud-based platforms track on your behalf. When Viridity manages your payroll we also cross-check relevant updates to your industry and business are correct. We call that peace of mind!
There’s also reducing data entry that can be achieved when payroll, HR and accounting systems are able to access the same cloud-based data. The reality is human error can be very, very costly in the long run if a simple error is not picked up early. When systems are working well together time spent coordinating and cross-checking payroll information is eliminated if the team had time to get to it in the first place.
Finally the most important saving of all. Your time. Time is money and yours is the most valuable in the organisation. Outsourcing will cost you a whole lot less than employing someone in-house, even part time.
2. Work on your business, not in it
Does getting back (at least) several hours of your working week to focus on revenue and strategic plans and drive product growth, sound good? Getting yourself bogged down in the functions of payroll won’t help your business thrive. The beauty of outsourcing is that confidentially is guaranteed. Having a neutral ‘third party’ managing the process keeps you out of being mired in day-to-day operational issues. I’m sure all too aware you can lose hours in payroll queries, questioning shift rates, annual leave entitlements and the like. That’s valuable time you could spend innovating or reviewing the sales operations of your organisation or planning your next marketing plan.
Working on the business is the most important role you have and not outsourcing payroll because “it costs money” is ultimately, a false economy.
Do you remember any holiday where you didn’t have to calculate and run payroll? Does the idea of having a holiday without having to do the payroll sound good? (When we can all get back to holidays of course!)
3. Avoid losing expertise
By outsourcing, you can completely eliminate the need for the transfer of information between former and new employees. Relying on a handover from a former employee is risky at best. No matter how well intentioned, details fall through the cracks in an employee handover. Outsourced payroll services maintain a consistent approach to payroll management. If your account manager goes on leave, we make sure the role is covered so there’s no impact on your business. Full stop. There’s no need to induct employees on technology platforms or invest in lengthy training. You no longer have to rely on maintaining compliance within the business – whether it’s you or another employee. All you need to do is approve the file we send you.
When payroll isn’t your core strength and you don’t have a dedicated payroll expert in your business the complexity of workplace agreements, Industry Awards, shift work, and superannuation virtually guarantees costly errors within an organization. The Australian government’s National Employee Standards (NES) provide a frame of reference for minimum compliance that requires vigilance and expertise to remain compliant. Haven’t heard of NES? Then you’d better call us now to review your payroll and ensure you’re compliant. Large fines can be incurred and there’s been too many stories in the press over the last couple of years of companies having to back-pay or compensate their employees for non-compliance with NES. You don’t have to be one of them!
At Viridity we ensure that the standards are adhered to and communicated effectively. Our team is all CPA qualified and experts in a wide variety of payroll systems. We keep abreast of all legislation changes and updates and ensure your payroll is data is accurate and on time. We also help you navigate Covid-19 support payments such as Jobkeeper and Jobsaver (NSW) for your employees.