Are you considering payroll software for your small business? Keep reading to find out why payroll software systems may not be right for you, and how an outsourced payroll solution can give you the stability you need to grow your business.
Many small businesses process their payroll manually, using basic software and relying on out of date systems. Alternatively, their accountant may offer payroll as a bolt on to their accountancy services. This often seems like the most cost-effective option, especially when there are very few employees to process payroll for.
However, payroll is getting ever more complicated and as a business starts to grow, keeping abreast of developments and payroll legislation will become ever more burdensome. Processes can take up valuable time that could be spent on other more important, revenue boosting activities. There is also an increased risk of error, or payroll being processed too late. This can be costly for any business, but for SMEs it’s far too risky.
A bigger better payroll software package may seem like the obvious solution, but staff, who often wear multiple hats in small businesses, can find themselves out of their depth.
Payroll Software Explained
Payroll software refers to a hosted or online cloud-based software that supports payroll managers in-house – giving them the tools and systems to control and process data accurately and efficiently. Data can be input manually, but all the important calculations are made by the system.
Payroll software is implemented and overseen by a specialist payroll provider, who can tailor software packages so they meet the unique requirements of each business. It is essentially ‘rented’ by businesses who pay a fixed fee on a monthly or annual basis. For small businesses, this solution can be expensive, or too restrictive – depending on the business you run. Furthermore, if you require anything more than the basic software, costs can often quickly ramp up.
Can Payroll Software Support My Small Business?
If you’re keen to keep control of your payroll functions, but want to run processes more efficiently and avoid making mistakes, a good solution would be a part managed service. This will provide a good front end payroll software so you maintain control in-house, but leave the back end administrative burden to an outsourced provider.
Good part managed payroll providers offer superb front end control cost effectively for smaller businesses – allowing more flexibility and streamlining core HR and payroll functions so they are integrated. This makes them easier to keep track of and manage as your business grows. Ask about FMP’s part managed solution, using our HMRC approved Payrite front end.
Cost-Effective Alternatives to Payroll Software
Whilst payroll software maximises the accuracy and efficiency of running payroll processes manually in-house, at FMP we recognise that for many small businesses, it’s still not the most feasible option when it comes to managing payroll. This is why we also offer payroll outsourcing services, specifically tailored to the requirements of small businesses. With outsourcing, you can choose to deploy some or all of your payroll functions to a trusted payroll provider, such as FMP Payroll Services, who will charge a fixed price to do all the hard work for you.
With payroll outsourcing, you can completely remove the headache of managing payroll in-house. All the associated costs and time-consuming administrative tasks are eliminated, but you still get all the benefits of a dedicated payroll team.
Benefits of Payroll Outsourcing
- Receive dedicated support from UK-based payroll experts who can take care of all your complex payroll tasks
- Dedicated support from your very own payroll manager
- High levels of accuracy and 100% guarantee that your payroll will be processed on time, every time
- Year End processing all taken care of by FMP Payroll Services
- Avoid costly up-front costs of software licence fees and maintenance
- Significant time savings so you can focus on revenue-boosting activities to grow your business