Payroll operations tend to get complicated on the African continent. With more than 40 countries on the continent, laws and policies vastly differ from one another. Limited information is available to most people, and procedures often take a lot of processing time.
Major Return on Investment (ROI) through Outsourcing
There’s no doubt, it’s
because of technology that outsourcing has become a key element in business
strategy. Through secure online portals, cloud and SaaS platforms, and the
incredible speed of communication that occurs now, what once had to be managed
internally or had substantial cost is now easy, accessible, and
economical.
So, whether it’s
contracting with a marketing firm to promote the business or partnering with an
outside firm for human resources, payroll management or time tracking, it can
pay dividends to hand certain duties over to an expert.
Accounting — payroll
included — along with Human Resources, continues to make the top-ten
list of the most suggested outsourced services for small businesses.
Outsourcing these types of services can simplify business administration and
free up valuable time, letting management and employees focus on operating and
growing the business while outsourced professionals handle the tedium and
specifics of compliance and reporting.
Instead of bogging
down an in-house manager with payroll management, outsourcing
payroll saves time otherwise spent doing calculations, ciphering tax
code requirements, prepping checks or deposits, and financial reporting on all
of it. And then there are withholdings for benefits programs, retirement funds,
and more, that muddy the waters for an overwhelmed internal manager.
Here are five ways outsourcing payroll will makes things easier on your business.
1. Allows You to Focus on Business
To put it mildly,
payroll is a headache for small business managers. Besides the investment of
time, keeping up with changing tax requirements, withholdings, deposits,
checks, and much more, can frazzle even the most stalwart of business owners.
But outsourcing
payroll isn’t about passing off a time-consuming task. The real upside of
outsourcing payroll is that it delegates something that, for most businesses,
is a non-core
function, and frees an entrepreneur to focus on a business’s stated
function as opposed to its tangential operations.
Whether in retail, a professional firm, a service business, or something else, outsourcing payroll services delegates an essential task to those who know how to do it best and frees up the time for business leaders to concentrate on their next innovation.
2. Improve Business Efficiency with the Latest Technology
Technology was
mentioned earlier as a reason why outsourcing has become such a ubiquitous
approach for small businesses — but with payroll services particularly,
technology has made it so easy to outsource the service that it makes no sense
NOT to.
Today’s employees
expect options like direct deposit and easy-to-access records of their pay
information. The bigger the business gets, and the more employees it has, the
more critical it is to utilise the most up-to-date technology to keep track of
and manage it all.
A payroll service lives in this space. Payroll providers invest in the best technologies and work to maximise the benefits, so their customers ultimately benefit and save time and money.
3. Improves Compliance and Reporting
Between wage and hour
laws, tax regulations, filing deadlines, forms, legislation unique to each
state, and frequent changes, complying with all requirements involved in
payroll administration is head-spinning. Shocking as it may be, there’s a
reason why payroll is a full-time job. An operator devoting energy to growing a
business concept has little to no time to get an education on these complex
rules, and often if they do try, issues arise only further complicating the
process.
An outside payroll service is primed to take this on, doing it all the right way and on time. And, efficient management of your payroll means it’s all being tracked, right down to the penny. A payroll service can create regular or special reports as needed to give your business a clear picture of where you stand and where you’re headed.
4. Mitigate Business Risks
“How hard can it
be?”
This is what too many
small business entrepreneurs say, thinking payroll involves little more than
signing checks. But there is a right way and a wrong way to handle payroll
procedure and plenty of opportunities to make mistakes, unfortunately.
Payroll must run on
time and correctly, whether the party being paid is an employee or a
governmental tax collection entity. If the latter is mishandled, penalties and
fines can add up fast.
Tax regulations change constantly, and if you’re doing your entrepreneurial duties right, you won’t have time to keep up and properly run your business. Outsourcing payroll services makes sound sense, as the business experts say, leaving the details to seasoned specialists.
5. Reduce Operational Cost
Historically, many businesses assumed it was cheaper to do payroll themselves; and that just may not be consistent with business owners today. Once the team grows to a few and then several employees, the increased time spent navigating payroll for each pay period becomes an enormous cost, it simply takes time away from running the business and bringing in revenue.
In fact, even a
business with just one employee may
be better off outsourcing payroll.
Other costs of internal payroll management include software, updates, and training — as well as potential fines and penalties from mistakes. Benefits of outsourcing payroll are clear, and they add up to a more efficient business, poised for continued growth and smoother operations.
About Africa HR Solutions
EXPERT PAYROLL SOLUTIONS IN AFRICA
Africa HR Solutions offers a full range of reliable services to facilitate your workforce management on the African continent:
- Hire people on the African continent without a registered entity
- Complete payroll rundown and management
- Central point of contact for all your queries
- Guaranteed compliance to local laws
- Professional indemnity and employer liability
