Wednesday 28 March 2012
Small businesses may be able to reduce their administration burden by outsourcing their payroll function, it has been suggested.
Martyn Hart, chairman at the National Outsourcing Association, said doing payroll in-house is a time consuming and resource intensive task.
"To do it in-house means employing someone, or someone taking time out of their other duties in order to calculate and disseminate the monthly wages," he noted.
"How many small businesses can afford either of those options?"
Mr Hart said companies need to people to be wholly engaged in revenue generating activities - as this can be the difference between survival and collapse.
He claimed using a payroll specialist means the task can be completed quicker and cheaper, with no upfront investment in software and none of the complications of staying abreast of evolving legislation.
"Mistakes in this area can prove expensive, resulting in devastating fines and hamstrung cash flow down the line," Mr Hart added.
And as such, it can make sense for small business employers to leave this area to the experts, and re-invest the time saved back into growing the company.
Posted by Steve Williams