Why do companies, large or small, prefer outsourcing their payroll management and outsourcing tasks? Is it just the cost cutting front or is there something more to this. Well it’s not a mystery what drives outsourcing of payroll management. Let’s discuss the issues that are behind this global trend.
Honey, Its all about money.
Who won’t agree? Every businessman is here to book profits. So if someone offers quality service at lower investment instinctively we make the switch to the new service provider. It all depends on the cost of manpower in your city. Some times your work may not be large enough even for one accountant but you have to maintain two of them for smooth functioning of work. In this case outsourcing the job helps you save a lot of money.
Let’s do what we do best.
The core business should be the priority. Rest all may be important but nothing should bother the main business productivity. What many of the companies who cannot afford to appoint full time accountants assign this work to the most trusted workers. This way the productivity of the organization takes a beating. It may not be apparent but shedding of this work load to a payroll management company will only be profitable to you.
To err is human, but who will pay for the error.
Mistakes when they occur in accounting can be a real pain not just mentally but financially as well. If your accountant did the mistake you surely won’t hang him for the error. Neither can you press him for retribution. But if the job was outsourced to a specialist company then not only there are lesser chances of errors to seep through but you can also claim loss levelers.
Sorry no pay this month as our accountant is holidaying in Kerala
No it’s not funny. Your employees don’t like to hear this. They deserve their pay cheque and you won’t get anything by irritating your employees. Commitment is what matters today. Now if your payroll or taxation process was outsourced then you would keep your employees pleased and avoid late fines from tax department.
Too fast but not so furious
A team of experienced accountants headed by an expert will get your job done in rapid fast time whatever the level of complexity your job may offer. They will be better at handling taxes and offering you business specific and money saving tips.
Should your employees know every thing about your finances?
Serious question huh? Imagine one of you most competitive employees who also used to be your accountant leaves you to join your competitor. It’s not some thing new or rare. Every now and then people switch jobs to join rival business houses for a higher pay package or better position. Now in this case, would you like your rival to have an open book of you finances right before his nose? This would never happen if you had a professional finance house taking care of your payroll of finances.
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