Are you fretting over your payroll? If you are, you need to outsource your payroll right away. Not only outsourcing can save your money and time, but it also saves you from headache.

However, whenever you make the decision of outsourcing, you need to consider all the advantages and disadvantages that come with outsourcing.

So, what are the pros and cons of outsourcing your payroll?

Pros
Convenience
As a business owner, outsourcing payroll allows you to focus on your core activities of your business. Moreover, passing your payroll information to the third party helps you to know and track everything about your payroll expenses.

Efficiency
When you outsource payroll to payroll companies, they will do the job efficiently as they are designed to do payroll operations quickly and correctly without any interruptions.

Time saver
One of the top advantages of outsourcing payroll is it saves time. When you outsource, your staffs will be free from doing works like calculating pay and deductions and spend their time on more value generating activities.

Cons
Unreliability
Outsourcing your payroll increases the risk of you being connected to the unreliable firms. And, such firms may not be able to deal with the unique aspects of your company’s payroll and can produce errors in your payroll which can be very costly.
There is also the quality of work which you may not be satisfied with when you have unreliable firms handling your payroll functions.

Risk to confidential data
Handing your payroll operations to the payroll companies can cause your financial records to be exposed and thus leaves your company vulnerable to theft and lawsuits. This is why you need to make a clause in a contract if anything occurs to protect your confidential information.

Loss of managerial control
When you hand over your payroll to the third party, you give away your managerial power to them. And, this provides them power to control your payroll department.

Outsourcing your payroll requires a thorough examination considering the advantages and disadvantages because it can impact on your business directly.

If you have any enquiries regarding payroll services, feel free to email us at info@harleystreetaccountants.co.uk.