As businesses keep achieving new heights today - non-core business tasks such as accounting, staffing, HR and payroll processes are often outsourced to IT consulting agencies to better expand the business. Such agencies have become quite the norm in the last two decades as they tend to provide effective HR and payment management solutions, professional expertise, upgraded technology, and a better insight into the financial standing of a business.
Yet, there are many general myths associated with outsourcing payroll and accounting that we are here to bust for you in this article. So, read ahead to find out how outsourcing payroll may actually be one of the best solutions to streamline your business!
Myth 1 - Sending financial details to a payroll outsourcing firm is not secure.
Payroll outsourcing companies are instead better equipped to handle the security of your servers! Since such firms are more honour bound to maintain their reputation - they make your data security their top priority. Most such firms maintain cloud-based storage systems, maintain virtual domain networks, have top encryption in place and do routine safety checks to ensure that your business data is safe.
Myth 2 - Payroll outsourcing is expensive and only suitable for large corporations.
In fact, it’s quite the opposite! Maintaining an entire in-house team of full-time accounting professionals can get quite expensive, especially for small and medium sized businesses!
In this case, payroll outsourcing firms come to the rescue as they can provide the same expertise with a team of professionals and better technology at a relatively affordable cost.
Additionally, you only pay such manpower consulting firms for the services you hire whereas you may need to give additional benefits and manage overhead expenses for employees. Besides this, payroll outsourcing firms have the right experience to help you avoid hidden costs and government penalties. This turns out to be even more cost effective for your company.
Myth 3 - It will be inexpensive if I do the payroll myself.
While it may seem inexpensive, the job of payroll management takes immense time and energy to be accomplished each month! And for any business - time invested is literally converted into money. The more amount of time you and your employees invest in doing core business tasks, the more it increases your revenue.
When you engage in managing the payroll yourself - the tedious tasks it requires such as maintaining large databases on paid time offs, new hires, reimbursements, tax rate changes, and more may take a heavy toll on your valuable time. In the long run - losing out on such time may impact your profit turnover, leading to losses.
Myth 4 - Providing data to a payroll outsourcing agency will take too much time.
Since payroll outsourcing agencies use top grade technology - they are able to take your manual payroll process and transform it into an automated standardized procedure for your company. Thus, their integration systems and cloud-based servers will be able to access your business data quite quickly. Besides, reputed agencies may be able to quickly and accurately accomplish payroll processing in half the time your business now requires!
Myth 5 - Payroll outsourcing firms will not understand my business model.
Since such firms continually work with the top businesses in the world, they are better equipped to understand your business model. Based on your business needs - they may even suggest the right payroll processing strategy for your business! Moreover, their accounting efforts may further help you analyse payroll reports better as well as gain new financial insights for your business.
Myth 6 - I will still need to hire an in-house accountant.
The presence of payroll accounting agencies itself eliminates the need of hiring an in-house accountant! Reputed firms in this field have the right experience, top technology, and a team of professionals to streamline all financial aspects of your business. Whether you still hire an in-house professional or not - is completely your choice.
At IDC Technologies - now that we’ve busted some general myths about payroll processing - we hope you gained a deeper understanding of how payroll outsourcing may benefit your business. Be it a large corporation or a growing startup - we specialize in efficient payroll outsourcing for all types of companies to help your business achieve new heights without worrying about mundane tasks such as payroll.