Correct me if I´m wrong but I think that outsourcing payroll is not so widely spread among companies as they still do their accounting in-house. As the outsourcing per se has its advantages so does outsourcing of payroll processing. Below I´ve listed couple of important factors you should consider if you´re running a firm and thinking about outsourcing your payroll agenda.
Imagine a world where you don´t have to be physically present in your office but someone still answers your phone calls, postal service is taken care of and all of that with financial cost near to nothing. It does seem odd, a bit like entering the Matrix and in some sense it may be so. Welcome to the modern world and enter into virtual office with your assistants. Virtual office is a place that exists only in cyberworld for companies that don´t have its own office or are operating from foreign countries and need registered office for their business (which is obligatory for incorporation). It goes hand in hand with several advantages.
With growing number of firms many of them are choosing the solution of having an external accountant. Why do they do so? What is their motivation or goal? Could it be the one perfect solution for my business? I´ll try to briefly enlighten the reasons that lie behind this decision and answer these questions, hopefully to your satisfaction.
It isn´t much likely that you haven´t heard the term – outsourcing but even if you had, you may be still wondering what its meaning is. In this short but hopefully rather helpful paper I will explain its main purpose as well as its benefits.
I´ll focus mostly on outsourcing of accounting services as we´re in the business, nevertheless outsourcing can be useful in logistics, human resources etc. What is it then? Long story short, outsourcing is a practice used by companies to reduce costs by transferring portions of work to outside suppliers rather than processing it internally. In another words, imagine yourself owning a company, let´s say, of ten employees, where processing your accounts along with payroll every month is inevitable. Instead of doing it yourself though, you can outsource your accounting to external company which will do that for you, while you can stay focused on your business without having to be stressed about accounting processes.