Payroll is one of the most integral parts of a company requiring strict attention to detail and time. Payroll professionals work in the centre of your business, ensuring day-to-day financial systems run smoothly.
You can’t underestimate the strength the service payroll professionals provide. Many online systems and their software have established a high-pedestal position in the financial sector. Still, arguably, no system can beat the brains of a well-educated, diligent and dedicated payroll professional hired to support the success of your business.
So, why should you hire a payroll professional?
First, let’s clarify the purpose and responsibilities of a payroll professional.
What is a Payroll Professional?
A payroll professional is a person who is responsible for overseeing all aspects of payroll within a company. These professionals spend years studying the ins and outs of financials and business accounting to ensure companies complete all aspects of payroll legally and as efficiently as possible.
The role of a payroll professional can include, but is not limited to, the following:
Processing and managing payroll systems
Preparing employee tax forms
Tracking employee work hours and benefits
Knowledge of past and present payroll policies and regulations
Analytical skill set
Extreme attention to detail
Strong communication skills
Now that we understand the extent of the responsibilities that come with their role, let us dive into our top three benefits of hiring a payroll professional in 2022.
1. Cost Effective: “More Bang for Your Buck”
Hiring an in-house payroll professional is arguably a much more cost-efficient payroll option compared with outsourcing your payroll services to a third-party system.
Outsourcing with an incapable company or software system can do more harm than good. These payroll systems can also be quite a pricey investment, but many systems also include additional service charges and hefty processing fees.
Relying on outsourced payroll professionals and software can also risk your company incurring fines, penalties, and other costs due to inaccuracies, troubleshooting, and mistakes that aren’t uncommon for outsourced payroll systems. Despite the outsourced system causing issues for your company, you are ultimately the party that’s responsible for any penalties and are left to clean up the mess.
Hiring a payroll professional leaves fewer opportunities for mistakes and inaccuracy. In addition, payroll professionals are trained and educated in keeping tabs on changing tax codes, federal and regional regulations, document formats and forms, and all government and employee laws. They’re not only payroll professionals but are also proficient in customer relations and communication, and are generally perfectionists with meticulous attention to detail.
If you manage to select a strong candidate to represent your payroll and financial sector, complications should be minimal, if not non-existent. Long-term, your company is less likely to lose money from careless mistakes from an automated system. Instead, you will have an employee proving every day to be an intelligent and resourceful investment.
Hiring a payroll professional in conjunction with studying our Profit First system helps you as a new or existing business owner gain better insights into your finances and how to manage them. Find out more here!
2. Data Security
A company's payroll records and details contain sensitive information and data that must be kept safe. These confidential details are best to keep in trustworthy, honest hands. An outsourced service can open your company to data leaks containing information such as bank account security numbers and details. For an in-house payroll professional, the risk of a security breach is much less likely, compared with an online system which is often susceptible to hacking attempts.
Keeping your sensitive data in one system, one place, and in one department's hands is the best way to stay safe and secure. In addition, an outsourced service often requires you to provide detailed, valuable information about your company or staff. Instead of risking a security breach, you can keep your sensitive information close and secure with trusted financial employees and payroll professionals.
Ensuring your confidential data is secure is a necessity. Suppose you can find a suitable payroll specialist and keep your finances safe within your company. In that case, your employees can bear a more profound sense of safety and trust in your company and are inclined to trust your financial management more.
Outsourcing payroll services can have unexpected issues and interruptions, leading to delayed payments and processing. If you invest in a payroll professional for your staff, wages are consistently error-free and carefully processed. Minimal errors can hugely benefit your employee's trust in the company and sustain employee morale.
3. Increased Time Efficiency & Productivity
Outsourcing payroll responsibilities to a software system can be a monumental time-waster in many ways.
Common issues include:
Open-ended questions with unfulfilling answers
By gaining extra time by minimising unnecessary communication, meetings, or troubleshooting, your company can focus solely on growing your business and expanding other areas of expertise. Your payroll specialist will calculate the best ways to reduce costs, streamline operations, and keep systems organised and efficient. You can trust your in-house financial experts to take care of everything and only take up valuable time if necessary.
Choose your payroll professional carefully, ensuring you onboard the best employee to provide superior results.
It's easier to communicate with an employee than with a computer.
Recovering from data leaks can be complex and exhausting. Save yourself the stress, and hire someone to manage it for you.
Minor errors from automated systems can be majorly damaging to your company. Let the errors come from a person that can fix them immediately.
Time is your most valuable asset. Don't waste it on software that can't fix its mistakes.
Your finances, accounting, and payroll systems are delicate and advanced. Let the professionals work their magic, and you will never consider using the software in question again.
Your time and money are valuable. Invest it in someone who will be an accounting mastermind for your company, handling all things payroll. After all, they have spent years perfecting their skills to ensure companies are compliant, organised, and incredibly financially successful.
Is your business next?
Looking to learn more about managing business finances? Check out the Profit First Cash Management method for the best in Australian business finance management education.