If you have read our previous blog on outsourcing payroll you no doubt believe that outsourcing will definitely reduce your stress, give you more time for other tasks, cut costs, and ensure that you business is fully compliant. But when would be the best time for payroll outsourcing?
Deciding when to outsource your payroll is not a matter of right or wrong timing, as there is no universal solution that fits all scenarios. The decision to outsource can be made at any point in the year, depending on the unique requirements of your business. Since every business is distinct, prioritizing what aligns best with your specific needs is paramount. To assist you in determining the ideal timing, it’s important to consider several factors that are crucial for your business, such as workload, budget, growth trajectory, and the complexity of your payroll processes. By evaluating these aspects carefully, you can make an informed decision that will benefit your business in the long run.
Outsourcing Payroll for Start-ups
Unlike larger businesses, if you are a start-up company then payroll outsourcing can be a fantastic first option. As a start up you will have a lot of plates to spin. Just one of these plates is payroll. No matter how many employees your start up has, payroll will still need to be run and completed. It should not be put off until another day.
To support this, you have to know all the regulations and laws. If you’re just starting off this means understanding compliance, and involves staying up-to-date. At the beginning of a company’s career, this may not be on top of your priority list. Many starting business-owners neglect payroll because they think that if you spend your time on payroll, you aren’t growing your business. Outsourcing payroll can allow you to focus on just that. This option can also save you money which is a huge benefit to a company that is finding its feet.
Payroll for Growing Businesses
Similar to start ups, if your business is expanding your focus will be elsewhere and your priority list may have changed. You and your team will be focused on achieving new organisational outcomes, sometimes before a certain deadline. Having someone else to process your payroll and keep up to date with key legislation will take one pressure off you. A growing business needs its leaders at the helm. Getting an expert like Wurkplace to assist will allow you to focus on the expansion of your business. This is also a huge benefit when your business does grow and you start to employee new people who need to be enrolled and paid. Having a one-stop for payroll can make this transition seamless.
Resigning In-House Team
What happens if you only have one or two people running your payroll in-house and these employees decide to move on… Just because they have left, doesn’t mean that the processing of payroll can stop. It is a legal requirement. However, you may not have the time, resources or money to recruit and train a new person to process payroll. After all, recruitment and training is a hefty investment. This could be the perfect time to outsource your payroll as those taking on your payroll will already be trained and qualified with the software ready and waiting to go. This will ensure that the payroll will still get completed in a time efficient manner and employees will still get paid despite the interruption.
No need to pay for infrastructure, maintenance, software – just the service. A good payroll outsourcer will take full accountability for the payroll solution.
Three Months Before The Financial Year Ends
If you’re looking for an optimal time frame to start outsourcing payroll, consider beginning the process three months before the financial year ends. This period allows ample time to close employee records and reports, and to align contracts with the start of the new financial year. By transitioning at this time, the new payroll provider can begin with a clean slate for the upcoming year. This approach ensures a smooth and organized transition, aligning all payroll activities into one consistent time frame and simplifying the overall management process for your company.
Existing contracts
You might want to time your switch to a new payroll provider when your current contract with your existing payroll software provider is due for renewal, if applicable. Alternatively, consider transitioning when an employee on a fixed-term contract who manages your payroll is nearing the end of their term. In either case, ensure you allocate sufficient time for the transfer period to allow for a seamless transition.
If you anticipate any upcoming projects or events that will require significant time and effort from you and your team, it may be best to delay the outsourcing process until those are completed. This way, you can give the transition your full attention, ensuring all details are managed effectively. Once everything has switched over, you can expect smooth sailing with your new payroll provider.
Here at Wurkplace, we have SAGE and XERO software already in place with a dedicated, highly efficient team to be your payroll provider. If you would like to learn more about Wurkplace’s payroll services then get in touch today. Our team are ready to help. Contact us via our online form, or by calling us on: 0330 400 5490.
A valued member of the Wurkplace team providing administrative and coordinating skills for the HR department and also overseeing the accounts department of the business whilst carrying out key bookkeeping tasks and conducting payroll.
Georgia holds a level 3 in Business Administration and AAT level 2 whilst continuing to work towards gaining a diploma in AAT.