So we won’t go into tedious detail weighing up all the pros and cons of doing so. We’ll just give you the primary pros!
It was once pretty straightforward managing a company payroll, but this is no longer the case. Sorting out salaries, wages and any commission for an increasing number of staff is plenty to deal with, before you even start to consider bonuses, statutory payments, backpay, allowances and expenses, benefits in kind, printing payslips…
You get the picture. Managing a company’s payroll function increasingly requires tip-top accountancy skills. And even if you’re handy at this kind of stuff, is it really the best use of your time?
We estimate that small businesses spend six hours per month working out their payroll. That’s almost a full working day. If you’re reading this, the chances are that this job currently falls to you, and it’s almost a full day of admin that you could be spending where your skills truly lie.
Outsourcing to a company like Mazuma (hello!) which lives and breathes this kind of stuff will make your life less of an administrative nightmare, and free up a load of your time.
As mentioned, payroll management is time-consuming, which is a cost in itself. But one real risk you run is that - if your business is struggling with its payroll function - you could incur financial penalties.
You need to comply with PAYE regulations, and get accurate records to HMRC on time. Failure to do so could lead to fines, knock-on effects such as further wasted time, and potential inspection.
Any staff dealing with payroll in your business need to be highly trained and reliable. They also need to keep their fingers on the pulse of regulations, which change frequently. You’ve really got to be on it.
Then there’s the whole malarkey of shelling out for accountancy software, and associated training costs. If payslips and forms such as P60 and P45 need printing out, you’ll need a reliable printer - so there’s hardware costs too. And you’ll need to ensure there’s good security software and firewalls in place to safeguard any sensitive data. All of these things cost bucks.
Paying an accountancy may seem like an expense on the face of it… But in truth, you’re offsetting potentially massive costs by outsourcing.
That’s right, we said it. Sorting out your company payroll is a boring task. Obviously we don’t think so, because we’re accountants. But we recognise that most people - most people who aren’t passionate about accounts at any rate - would rather be doing something else.
Why spend your life doing boring tasks you hate? The simple answer is - you don’t have to.
Outsourcing to a reputable accountancy service could save you a huge amount of time, money and brain cells. And that’s where Mazuma comes in. If send your payroll to us to manage for you, we take everything off your hands - the maths, the printing, updating HMRC, keeping on top of changes to regulations… the lot.