31 Oct

Do you know the true cost of your payroll operation?

Have you considered Payroll outsourcing? You aren’t alone. What usually stumps people is trying to do the cost comparison between using a payroll product and managing their own payroll. If you’re self managing, it’s probably even worse- you probably have no idea how to adequately asses your costs to make a reasoned and measured decision on your processes.

Think of the hard questions first.

Firstly, you won’t get very far in the cost assessment process of your payroll services if you don’t know what data you need to asses. Do you need to know how many people you need to adequately work your payroll in time? Are you more interested in statistics like what proportion of workers are paid at what intervals? Or are you deep into the nitty-gritty of administration and looking for information on acceptable error rates and whether reporting to the HR or finance departments work best? There’s a host of questions revolving around the issue of payroll, and it’s critical to know which interest you most when trying to asses your payroll situation.

Isn’t payroll services a fixed cost?

In theory- and in most people’s mind- payroll is a fixed cost. However, that’s not true, and an efficient payroll service will likely help you make considerable improvement in this matter. Incorrect payroll calculations may well cost you a great deal of money every month. So can compliance issues. These may be small amounts per person, but they add up considerably across the company. Remember that some workers are paid as casual workers, while others have a complicated package of benefits, allowances, perks and commission to be considered, and many of these figures may well shift monthly. It’s vital that you make sure these are being calculated correctly at all times. More info in this post!

How can I optimise my payroll?

Obviously, if your firm is large enough to support a payroll or financial department, it’s vital that steps are taken to ensure the cost of little mistakes does not add up quickly across the board. Audit procedures, a 2 step checking and compliance process and the use of suitably qualified professionals should all ensure that this occurs. If you’re a smaller business, however, this can be considerably more work and effort- as well as cost- then is strictly necessary for the size of your payroll.

Payroll outsourcing may well be the best answer for your issues. By outsourcing your payroll to a specialist company, you will be incurring a set monthly fee instead of having to find the salary for another staff member who may not be fully utilised through the month. Likewise, by choosing a firm of professionals you will be ensuring that compliance issues and small, easy to make mistakes if you are uninformed do not occur. This way you will keep your costs down and your profit up.

With the costs of taking on extra personnel second only to the costs incurred by them not doing their job properly, outsourcing payroll in Australia makes sense for smaller and medium enterprises.

Find more info in our featured post here: http://www.coefcu.org/what-services-should-you-use-in-your-daily-business-outsourced-or-in-house-payroll-services/

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