Do you outsource your payroll? Here’s why you should…
For many SME companies, payroll can be a real headache. It's an essential part of business to pay staff but with hiring people comes responsibilities such as tax, national insurance and deducting other fees such as child maintenance and student loans. On many occasions, not everyone will be paid the same wage either, so this means doing a unique process for a number of different salaries.
Alongside all of this each month, payslips need to be issued and organised records kept - along with tax returns sent to the taxman. For any freelance staff or outsourced work, the VAT will also need to be recorded as part of your quarterly VAT return. All in all, it can be a very time-consuming business that takes your energy away from the core purpose of your work.
That's where outsourcing comes in. Typically this means hiring an accountant or bookkeeper. They can advise on tax returns, accounts, payroll, bookkeeping and when all of these things need to be done by. You can allow yourself the peace of mind to not worry about it. Everything is taken care of lawfully and efficiently.
With hiring an accountant, you are buying speed, accuracy, flexibility, reliability and experience. You also don't have to worry about training a member of your own staff to manage and operate a payroll system. As an SME, often there isn't enough spare budget to hire someone solely for this purpose whereas having an accountant on hand means the same skills, if not better, but without the expense.
It's important that you do your due diligence when hiring an accountant as ensuring they're right for your business will make all the difference. A good channel of communication is needed between yourselves and your accountant so you always know when something is due and they are kept in the loop about any staff joining or leaving your business.
Accountants are specialists at what they do so you can place a large amount of trust in them, but it is always wise to go over everything your accountant gives you to make sure you understand it and agree with it before signing anything. It's their job to help you so asking questions and raising concerns will only help to avoid problems further down the line.
If you're interested to know more about outsourcing your payroll, get in touch with us today and we will talk you through the process in further detail.
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