Payroll is about the periodic processing of sick leaves, holiday credits, late deductions, commissions, overtime pay, retirement program contributions and more. While the most common payroll period is every two weeks, processing it can also occur weekly or monthly.

It’s not easy, however; calculation errors are hard to avoid when you’re juggling bookkeeping and management. One tiny mistake can lead to unhappy employees.

Payroll tax laws are also a concern as rules vary. International organisations, foreign branches, subsidiary companies and start-ups have different tax considerations but have to be followed carefully. Failure to comply leads to expensive penalties that any entrepreneur would rather avoid.

Here is one simple solution to minimise errors and ensure compliance: outsourcing your payroll to remote assistants. Find out more below as to why you should delegate this administrative task to virtual bookkeepers.

It cuts costs

Keeping an in-house payroll department equates to additional overhead costs. Accountant salaries are already costly but then there are printers, software and office space to think about too. Leave forms and overtime slips to consume a lot of paper as well.

Turning to offshore staff encourages a shift to cloud-based solutions for distributing payslips and other documents so you can save on printing. You won’t have to deal with benefits like Medicare levies or superannuation guarantees either.

It enhances security

There’s always the risk of tampering, embezzlement, fraud and identity theft with in-house payroll processing. Plus, it’s difficult to secure your records unless you invest in cutting-edge encryption technology for your company server and network.

A reliable payroll service provider isn’t likely to gossip about wage gaps between employees or alter information for their own personal gain. They keep data in multiple servers and have backup copies for emergencies.

It saves time

Training employees how to use your payroll software takes time. Even if you hire someone experienced in using a specific platform, it may be a while before they finally get used to your internal processes. Any changes in tax regulations means you’ll need to spend time updating records too.

All of these hours could’ve been spent making computations. Outsourcing payroll frees your people up, enabling them to do other tasks. Should you add people to your team, you need only spare time to inform your virtual bookkeepers.

It eliminates guesswork

You might have payroll-related questions (e.g. the types of reports required, the governing bodies relevant to your business). As an entrepreneur, it’s understandable that you lack knowledge about these details if you don’t specialise in accounting.

A remote bookkeeper knows what is needed for transparent and accurate payroll processing. They will provide complete journals detailing credits, debits, and more. You won’t have to think about appropriate government requirements and correct fiscal dates as they’ll take care of these for you.

It ensures reliability

In-house payroll is reliant on people assigned to do the work. When they’re ineffective, salaries won’t be paid out on time and your workers will be left frustrated. When a key member of the team resigns, they take their knowledge and experience with them, thereby affecting productivity and workflow.

On the condition that you work with a service provider with good controls in place, reliability won’t be a concern if you decide to outsource. An effective provider, for instance, should invest in a large pool of specialists who can handle the work properly even if someone isn’t available.

It restores peace of mind

When your bookkeeping team is still coming together, you’ll have to check in with them every once in a while. You’ll have to look at their work to see if there are any mistakes that have to be addressed. Basically, you have to determine if they truly know what they’re doing or not.

An offshore service provider can help ease your worries and reduce your stress related to payroll. Just let them know your expectations and requirements, and they’ll take care of it. Minimal double-checking is necessary so you can focus your efforts in growing your business.

It offers additional services

Hiring an in-house accountant means having someone to take care of the accounting. When your requirements change or grow, they can give you only what they’ve always provided (i.e. accounting) and likely nothing more.

But when you outsource processes to an organisation like Remote Workmate, you get access to a wide network of specialists and their services. Looking for someone who also has knowledge in the specifics of labour laws? The provider will find someone for you.

Final Thoughts

Contrary to popular belief, processing your payroll internally may not always be what’s best for your business, especially if you’re still small. That being said, the benefits of outsourcing to virtual bookkeepers far outweigh taking the risk of miscalculation and noncompliance.

The compelling reasons we’ve listed here should convince you of that, so get an offshore assistant specialising in payroll today.