3 reasons why you should’ve outsourced your company payroll already
Every business owner knows the hassle and stress that comes with managing a company’s payroll. The possibility of mistakes, the cost of employing a team of payroll specialists and systems – all while ensuring SARS compliance, can be overwhelming. Many business owners will end up asking the age-old question: “How do I ensure that my payroll is done accurately while managing all the countless moving parts of a business?”
The answer is quite simple: outsource your payroll to an external specialist and let them do the hard work for you. Unfortunately, many company owners are hesitant to outsource their payroll management, mostly due to lack of knowledge around the many benefits it holds – and there are many!
If you are still on the fence about outsourcing your payroll services and you are in need of a little convincing, Cornerstone Tax and Accounting Services has compiled our top three benefits of outsourcing your payroll. These benefits are crucial to the successful growth of a company and will definitely have a positive impact on yours.
It saves you a ton of money
The cost of employing anyone is usually big, but the cost of employing a specialist with decades of experience can be massive. From recruiting costs, salaries and employee benefits to training and human resource management – it’s a never-ending bill. Not to mention the risk of employing a person who may have a negative effect on your company and the rest of the staff.
In most cases, a payroll retainer fee is much lower than the cost of a team of employees. When you have an external payroll service provider, you can avoid all these unnecessary costs and risks. There is no employment involved and therefore no labour law and no salaries, just a monthly payment to cover all your needs. It’s all the pros and none of the cons.
It helps you to avoid nasty tax mistakes and penalties
There are few things worse than a SARS audit, fine or penalty – especially if it was caused by a silly mistake that could have been avoided. If you have outsourced a specialist payroll manager with years of experience, you can bid farewell to any unnecessary penalties and fines as well as a more regulated and compliant payroll system.
A good payroll administrator must be qualified and registered with SARS as a tax practitioner – making them experts in their fields and tops at ensuring your company’s payroll system is above board.
No more loss of expertise due to staff turnover
If you were to ask any business owner what the most disruptive and costly event in business can be, most of them will unanimously agree that staff turnover takes the cake. Over and above the cost and hassle of having to recruit someone new, the loss of historical knowledge and expertise is sometimes almost impossible to replace. This means that departments often suffer one to three months of partial downtime while skills are transferred, and new systems are learned. Needless to say, this can cost a business a fortune.
With the aid of an external payroll administrator, you never have to worry about staff turnover and loss of expertise ever again. No matter what staff movements occur within your company, an external payroll administrator will continue to deliver the same level of service while ensuring swift and accurate updates of new and previous employees.
Yes, payroll can be easy. All you need is a qualified and experienced payroll administrator by your side. If you are struggling to manage your payroll internally and you would like to get in on these amazing benefits, contact Cornerstone Tax and Accounting Services today and let us do all the hard work for you. Also, remember to follow us on Facebook and LinkedIn for more interesting and useful content.