Should You Use A Professional Payroll System?

Whether you’re a large organisation or small business, there are always opportunities for efficiency. Payroll systems are a handy tool to manage salary payments, employee benefits and tracking working hours on a daily or monthly basis. This can be done manually, however it can be tedious and time-consuming for business owners.

Alternatively, you can outsource this to third-party companies who specialise in payroll systems. For businesses who want to keep costs low, it may seem like an unnecessary expense. However, it has multiple benefits from accurate calculations to freeing up time to focus on other aspects of business operations.

Companies that offer payroll software in the UK include:

1. Rippling
2. Pento
3. Deel

What Is A Professionally-Managed Payroll System?

Payroll systems are a core component of any business. It involves paying employee weekly or monthly salaries, calculating additional pay for overtime and compliance with labour laws. Your employees expect to be fairly compensated and on time, especially when it comes to retaining top talent within the business.

The processing of payrolls has become more complex over time as businesses and workforces grow, and this is where professionally-managed systems become an attractive option. In addition to performing the basic functions of payroll, these systems offer precise reporting and expert support. These outside companies are specialists in the payroll field, and provide support to business owners.

The Benefits Of Professional Payroll Systems

Whether you are looking to save time, money or ensure accuracy in your payroll processing, there are benefits of using professional systems for every business. It may be a pricier option, but it has long-term advantages that can assist with the growth of your organisation.

Increased Accuracy And Reporting

Anything that is done manually is susceptible to human error at some point, despite how careful you may be. Businesses can’t afford to have these mistakes happening when it comes to employee salaries. This can lead to employee dissatisfaction, and an unhappy workforce is not a productive one. However, professionally-managed systems are more accurate, decreasing the likelihood of mistakes.

It Saves Valuable Time

Payroll systems are important, but they shouldn’t take up all of your time especially if you are a small team with limited resources. If you train an existing employee to do it, this can also become as time-consuming as doing it yourself. Using a third-party company will free up a significant amount of your time, which can be used on other areas that require your attention just as much.

Access To Expert Support

One of the biggest advantages of using a professionally-managed payroll system is that you have access to support 24/7. Instead of spending hours trying to resolve issues on your own, you can reach out to a dedicated support team who can help you in a matter of minutes.

An Extra Layer Of Security

Payroll information is sensitive, and should be protected from those who are not authorised to access it. Payroll specialist companies often use sophisticated encryption technology that provides an extra layer of protection. This makes it more difficult for those outside of your organisation to access employee information. They will also provide secure portals for employees to access their information if and when they need it.

Tax And Labour Law Compliance

As a business, it’s crucial to be compliant with tax regulations and labour laws. These are often changed regularly, and third-party companies will keep your systems up-to-date to ensure compliance. Whether you’re running a small or large business, you won’t always have the time to keep an eye on changing laws.

When Should You Make The Switch?

If you have been managing your payroll systems manually, you might be considering making the move to a professionally-managed system. If you have a handful of employees or are planning to grow your team, this is usually a good indicator that you should outsource payroll services. As you hire more people, it becomes harder to keep track of salaries manually especially if you pay overtime.

The biggest indicator that should make you consider professionally-managed systems is if you are spending too much of your time doing it yourself. It may seem like a cost-effective option at first to do it by yourself, or train an employee to do it, but it won’t always be beneficial in the long-term. Investing in these systems means you are investing in your business, and its potential for scalability down the line.