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Thursday, 14 July 2016 10:18

Why payroll is one function you should outsource?

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Every company has a goal. That must be gaining a higher profit. It can only be achieved through two things; increasing its revenue or reducing its costs.

There was a time all work-related tasks and services for a business of any size were done in-house. Later, business consultants have long advocated about outsourcing non-core functions. A non-core function is one that is not a profit center (meaning, you don’t charge customers for it). A non-core function may be essential, but doesn’t differentiate your business strategically from competitors. 

Then, businesses worldwide realized that if they outsourced work, they could save money and achieve their goals. Payroll function is one of such functions that is regarded as a non-core function.

Many businesses worldwide, including small to large sized companies, today outsource their payroll function with professional payroll outsourcing companies.

 

Benefits of outsourcing payroll?

1. Save your time
Payroll processing by hand is a time-consuming process. Outsourcing payroll can free up staff time to pursue more important value-added and revenue-generating activities.

2. Reduce cost 
Outsourcing payroll can assist with cutting costs. By outsourcing company can eliminate the all costs related to payroll accountant such as salary, visa expenses, air ticket, leave salary and gratuity. Also outsourcing reduces the administrative cost such as printing & stationary and equipment maintenance.

3. Reduce risk
On average, businesses are overpaying employees by about 4 percent because of serious errors and mistakes in payroll computation due to the heavy work loads of accounting staffs in their day to day operations. Outsourcing payroll can assist you reduce them.

4. Avoid delay
A business depends on its employees. Making employees happy is the key to productivity and profitability of a business. On time payments of salary is an important way to make them happy. Outsourcing payroll helps to avoid unnecessary delays in payroll computation and preparation.

5. Protect the confidentiality 
Salary information is one of the most confidential data in a company. It is always required to protect that information from employees come to know of each other’s salary. Outsourcing payroll helps to protect that confidential information. Only top management will aware of employee’s salary and that salary data will transfer from top management to outsourcing company for the payroll process. Outputs again will be delivered top management from the outsourcing company. If any information has to be shared with others, then only aggregate amounts will be transferred, not the individual amounts. (E.g: Finance department will only receive the total or group wise information, not each employee’s separate information)

6. Get the expertise and comply with law
Most business owners and managers don't have time to keep up with constantly changing rule and regulations of applicable laws which their company follows. Through outsourcing payroll you can get the expertise of payroll professionals who are well aware of the latest changes in the laws and could comply with those applicable laws.

 

Why Parker Randall UAE?

At Parker Randall UAE, we provide comprehensive Payroll Outsourcing Services at reasonable cost to ensure that your company's payroll system moves smooth and adheres to Labour regulations, along with relieving you of the time and difficultly spent administering this non-core function.

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About the Author

Abdul Rahuman

Abdul Rahuman is the Audit Manager at Parker Randall UAE, who has over 14 years of experience in auditing, accounting, financial analysis and taxation. He has worked more than 10 years with Deloitte and Parker Randall UAE at senior positions with extensive knowledge in International Accounting Standards and International Auditing Standards..

His job profile includes, expertise in Accounting & Finance, Auditing, Corporate procedure manuals, Feasibility studies and other finance related functions.

Contact : This email address is being protected from spambots. You need JavaScript enabled to view it.

Read 817 times Last modified on Saturday, 15 October 2016 19:52