Why Should You Outsource Your Payroll?
When starting a discovery with a potential customer, we ask several questions focused around business processes. One of the areas we address is their payroll system and the provider they use. We pose this question for a couple of reasons.w
First, the answers we generally get are the typical names in the Human Capital Management (HCM) industry. Very few companies say they process payroll in house. The second reason we ask is because the cloud ERP products we sell, implement, and support do not have a payroll module. We rely on the customer to have their payroll outsourced.
Both Sage Intacct and Microsoft Dynamics 365 Business Central ERP products recognize there are plenty of payroll companies in the ERP space. They don’t need to invest the time into baking payroll into their platform as others already do it better. Another reason we rely on the marketplace is modern cloud payroll companies have the ability to offer more flexibility and integrations with both ERP products. As we shift more companies away from on-premises financial management, they have already shifted their payroll processing and other HCM needs to the cloud.
The main reasons companies outsource payroll are:
- Reduce administrative burden.
- Shift the risk and responsibility to a provider that is the payroll business.
- Payments and filings to federal, state and Local agencies.
- Employee self service online and mobile
- Different rules, updates and calculations for states, employees and rapid government changes
- Paying people in a variety of ways, customized per employee
- Shrink the time (a hidden cost) it takes to process payroll and overall cost of the process. Companies that still run payroll in-house, spend over 100 more hours on payroll per year vs those that outsource.
- Payroll requirements continue to evolve and become more complex
- Lack of resources internally when the providers have more expertise, experience and volume for in depth resources and economies of scale.
- Integrations with other systems feeding data to payroll like Time & Attendance, HR and Benefits and 401k administration.
With our experience, products, and history Alta Vista Technology can recommend solutions not just for accounting and ERP, but for many business process including your payroll system. If you have any questions or would like to learn more about cloud-accounting and payroll, please reach out. You can give us a call at 855.913.3228 or send us an email to firstname.lastname@example.org. You can even fill out our simple web form and someone will reach out to you within 1 business day!