Managing your payroll can be very time-consuming – and for many small UK businesses it could represent an inefficient use of your limited resources. By outsourcing your payroll to specialist firm, there can be significant advantages
1. Free up your management time to get on with running your business
For many SMEs running your payroll in-house can be very time-consuming, particularly against the recent backdrop of the coronavirus pandemic and the implementing the furlough schemes. Some payroll issues might need the input of a senior member of staff whilst other tasks will be very routine. Many firms cannot afford to employ a full time HR and payroll specialist so you, as the owner or the finance director, for example, might have to invest a significant amount of time researching and understanding the implications of changes to legislation and how it applies to your firm.
2. Smooth your in-house staffing requirement
When you use an outsourced payroll function, staffing for the peaks and troughs that might occur during the year is no longer an issue. You can leave this to your payroll specialist to manage.
3. Comply with the latest legislation
The firm running your payroll should ensure that you are compliant with the latest legislation and any changes as they occur. They will be able to provide useful advice on any new legislation and its impact on your business. By outsourcing your payroll, you will have access to a wealth of payroll experience at a fraction of the cost of providing the same knowledge in house.
4. Broad based experience
Many payroll providers will have experience in dealing with a variety of different sized firms across a range of industries. This means that they are likely to have already encountered any issues that your firm might face and help you implement the current best practice.
5. Monthly Fixed Fee
Many providers work on a fixed fee basis, so that you will have a clear idea of your costs and can budget effectively. Furthermore, by using an efficient payroll specialist you might find that not only do you reduce the headaches of running the payroll in-house but also you reduce the costs of administering your payroll function.
At DRG Chartered Accountants, we provide a full range of outsourced payroll services for SMEs. If you would like to discuss outsourcing your payroll, please call 01628 760 000 to arrange a complimentary initial meeting.
For further information
Read out latest Payroll Update 2020/21
The following DRG Fact Sheets might be of interest:-
DRG Fact Sheet - Payroll and Real Time Information
DRG Fact Sheet - IR35 and personal service companies
DRG Fact Sheet - Construction Industry Scheme
DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.
