As anyone who has ever set up a small business will know, setting up a payroll system that works effectively can be very stressful. Indeed, ensuring that every employee is paid the full amount they are owed at the end of the month is both vitally important and time-consuming. For this reason, many small business owners and entrepreneurs outsource their payroll services. This then frees up a significant amount of time in their timetables for other, more exciting tasks with a focus of working on the business, not in the business.
What exactly is payroll management?
Payroll management firms are able to complete the processes related to paying staff members such as calculating pay owed, paying the necessary Australian Taxes, cover off superannuation obligations and ensuring that money is sent to the right places. Outsourcing is a popular alternative to hiring in-house payroll and is seeing increasing uptake amongst small businesses in Australia that would rather avoid hiring new team members in accounts departments.
Does my business need to invest in payroll services?
Payroll services represent a fantastic opportunity for a number of reasons, including:
1. Outsourcing payroll reduces the possibility of errors
Professional bookkeepers & payroll managers are simply more effective at the payroll process when compared to small to medium business owners. Indeed, whilst one of your employees may be very good at working out the figures that should appear on employee payslips, it should be the responsibility of a trained and qualified accounts team member to complete this vital task. Remember that staff members are more likely to trust you as an employer if you can get their payment details correct, ontime & ensure all their tax & super obligation have been met. One of the most harmful things an employer can do is make errors with an employees pay.
2. Outsourcing payroll saves time
Successful small businesses tend to boast teams of dynamic and engaged individuals ready to think creatively to boost profits and engage clients. Getting staff members to take on long and boring administrative tasks such as payroll management can reduce the amount of time spent on revenue raising projects and can even dampen morale.
3. Outsourcing payroll saves money
As well as saving small businesses time, outsourced payroll services save money by cutting out the amount of money you would spend paying a person’s wages to complete payroll processes in house.
4. Outsourcing payroll is more secure
Professional payroll managers are able to conduct payroll processes in a way that is secure and compliant with Australian laws and regulations, including Tax & Superannuation obligations. This reduces the likelihood of data loss and, indeed, harmful fines.
If you’re interested in outsourcing your payroll, get in touch with Geekbooks today!