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?
Ultimately there is no right or wrong time to outsource your payroll. That is to say that there’s no one-size-fits-all solution. It can be done at any time of the year based on your business and its specific needs. Every business is different and doing what is best for your business is what matters. However, to help you find the time – here are a few things to consider.
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 are looking for a specific time frame to start outsourcing payroll, then three months before the financial year ends can be something to look at. This allows time to close employee records and reports and aligning contracts with the start of the financial year. The new provider of payroll can then start with a clean slate for the next year. This is a neat and tidy way of doing things, allowing you to align everything into one part of the year.
You might want to time your switch to a new payroll provider when your current contracts with your existing payroll software provider is due to renew, if you have one. Or, if you have an employee on a fixed term contract who is completing your payroll. If this is the case, ensure that you have enough time for the transfer period. If you have anything coming up that may need a lot of time and effort required from yourself and your team, it may be best to hold off until this has been completed to then outsource your payroll. The transition period can then have your full attention. Once everything has switched over, it’s smooth sailing.
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.
Currently practising all the aspects of Human Resources including employee rights, discrimination, how to manage grievances and disciplinaries.