Running a small business typically involves a host of time-consuming, complex administrative duties and constantly changing regulations. One of the main duties for a business owner is the payroll, as employees expect to be paid the correct amount of money in a timely manner. With the introduction of Real Time Information, this process has become a little more complicated for some small companies. To ensure that the payroll is run correctly and stays within regulations, many choose to outsource to a professional.
Free up resources
Rather than spend time and money on a payroll system, outsource to a professional with the relevant knowledge and software to complete the task in a timely manner. You could spend the time saved dealing with other tasks within the company or finding new clients.
If you don’t comply with the guidelines of Real Time Information, you may be charged a penalty by HMRC. Incorrect or late submissions will be charged a penalty, which is a drain on company finances.
Lack of experience
When you started your own small business, you probably considered your product or services and whether or not they would sell. You probably created a business plan and produced a long term business forecast, but did you ever consider dull, routine tasks such as payroll management? You probably didn’t consider whether you had sufficient knowledge and experience to deal with a payroll, which could lead to errors and penalty charges.
Outsourcing to an expert will leave you free to concentrate on sales and areas that you are qualified to deal with.
A small company will often try to minimise expenditure to cut costs and keep overheads low. Dealing with payroll requires hardware and software that can cope with the payroll system and any changes made. You must have the latest tax tables and version of the software installed to ensure that the payroll is correct.
Larger companies may have an in-house team to deal with payroll, but for small companies this is a large investment which may not be affordable or justifiable. If you employ just one person to do the payroll, you have to consider what happens if they take a long holiday or leave your company altogether. Outsourcing provides continuity and ensures that the process is correct and within the regulations of HMRC. Rather than spend valuable resources on payroll, consider outsourcing to save in the long term.