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Payroll service outsourcing and its advantages are well known to businessmen. Time, economy and crisis only highlight the key points of this tool for optimization of business processes of a company.
Payroll service outsourcing is transferring of a certain area of accounting to an outside provider (starting from primary accounting documents to reporting).
The service can be used by any company. Most companies who use payroll service outsourcing are international. This can be explained by the fact that payroll service outsourcing is a very convenient tool for business process optimization in big companies.
The practice of payroll service outsourcing for certain categories of personnel (for example, for top management) or difficult areas (for example, north regions) is also getting very popular nowadays.
Transfer responsibility to a provider
On the one hand, payroll service outsourcing is quite an independent sphere which gives an opportunity to transfer it to the outside provider. On the other hand, it is quite a complicated sphere which requires attention and the highest level of professionalism. Payroll accounting is regulated by legislation and it is the sphere of the highest attention of inspection authorities. Before making a decision to optimize business processes in accounting, make sure your business is prepared for it and you chose a good provider for it.
In case of transferring of certain objectives to outsourcing a provider is responsible not only for the quality of work but also for finances, such as tax charges and report delivery.
How much you should pay
Cost of payroll service outsourcing and audit depends on several factors:
- Amount of services. The more employees you have the lower is the cost for payroll service per one employee.
- Factors increasing the costs. They are:
- General number of charges and withdrawals;
- Complexity and volume of bonus calculations;
- Summarized recording of working time.
Use the advantages
When you use outsourcing in order to optimize business processes in accounting, it works as well as in others spheres of your business. Payroll service outsourcing also gives an opportunity to management to pay more attention and to spend more time on fulfilling of strategic tasks of a company.
Benefits from outsourcing are various and depend on each certain situation. If your company is not big, payroll service outsourcing will relieve the chief accountant and to transfer some part of work to high-qualified specialists without additional recruitment. Bigger companies save working places and don’t enlarge the number а personnel. And any company gets an opportunity to use inspections of the highest level, to redistribute intra-company resources, lower labor and tax risks and, of course, to provide process continuity.
There is an alternative opportunity to optimize business processes, reduce risks in accounting and to attract experts is payroll service audit. Audit helps to estimate how well the law is complied, to check the accuracy of charges and withdrawals and the correctness of financial reports.