A lot can change in a year. For many businesses the last 12 months has required an immediate focus on survival. To achieve financial stability, businesses have concentrated on improving efficiency and reducing costs in order to allow more time and resources to focus on revenue generating activities. The outsourcing of non-essential services, as well as some functional, but not client-related services, has been deemed a critical strategic move to helps ease financial constraints.
Outsourcing of the above-mentioned services, such as payroll, to use one significant example, to an experienced provider, has many advantages.
Saving Time & Money
There is a huge amount of time-consuming administrative detail that goes into effective payroll management. Preparation and administration of all leavers and joiners, RPNS, allowances and deductions, along with any legislative changes. Not to mention dealing with general queries by phone and email regarding net pay calculations, BIK, pension, AVC’s, and tax saver tickets. These are just some of the payroll tasks that require a huge amount of time and expertise.
Given that not all businesses may warrant a full-time payroll employee, the time, and costs of training a person on all the technicalities of payroll can be time-consuming and not particularly cost effective. When you calculate the cost of the time it takes to calculate payroll activities on a monthly basis you can effectively weigh up whether this contributes or hinders your overall business productivity.
Outsourcing payroll removes the headache and frees you up to work on your bottom line.
Team of Experts
Outsourcing the payroll function means that you access a team of experts who specialise in being informed, up to date and accurate in all matters relating to effective payroll management. The process allows you access to a team of skilled professionals without adding the expense of full-time employees, thus saving you time and money while removing any compliance headaches associated with payroll management. Small businesses without a dedicated resource for this function can find it challenging to stay on top of the frequent changes to complicated tax codes and legislations. Using an outsourced provider means that as a business you are not over-reliant on the knowledge and expertise of one individual, nor do you need to be concerned about gaps when they are on holiday or off ill.
Accuracy and Compliance
Typically, outsourced providers invest in the technology systems and teams to deliver a seamless accurate service, their reputation relies on it. Errors in issuing payroll is more common than you may think. To issue a payroll for one person can involve collating up to 14 pieces of personal data. If any of these are incorrect then that payroll is wrong. There is also the threat of penalties for late and incorrect filings. The professionals managing a company’s outsourced payroll are required to keep up to date on changing regulations and country requirements, and they will maintain accurate records and prepare payroll data and statutory filings accurately and on time. Knowing that the responsibility lies with the outsourced provider gives you peace of mind, as they are the best placed to ensure the data is accurate and delivered in a timely manner.
FMI have been the trusted partner for payroll outsourcing for brands such as Virgin Media, Coke Cola and Monster Energy, to name a few. Our payroll services are consistent, flexible, and we will work with you to ensure all your payroll requirements are met, ensuring that the results delivered are right for you, while always adhering to strict confidentiality. Our experienced professionals have 30 years plus payroll and accounting experience, and extensive understanding of all aspects of payroll, including latest payroll legislation and the EWSS Covid Scheme.
Using FMI as your outsourced payroll provider will also ensure that your business is tax compliant. This will allow you more time to focus on your core business, saving valuable time and reducing any risks involved with payroll management. We will always ensure that all aspects of payroll are covered in detail, increasing accuracy and minimising risk each time.
So, if you have been thinking about outsourcing your payroll, get in touch with our team today.