What Are the Benefits of a Managed Payroll System?

In the modern age it’s all about streamlining processes for a lot of businesses. Managed payroll systems provide a great way to ensure this is the case when it comes to paying your employees. As well as making the process a lot simpler and easier, there are many other benefits of using a managed payroll system, whether you run a start-up, SME or large company with hundreds of employees.

Free up More Time

Usually it will be the finance or HR department’s responsibility to look after the payroll for your business. Using a top quality managed payroll system will free up a lot of time for whichever employees are otherwise tasked with taking charge of payroll. Considering this can take up hours of their time, depending on the size of your company, it frees up a lot for focusing on other tasks. This could be for recruitment, strategies and other jobs that should help to improve the efficiency of your company.

Improved Accuracy

Payroll needs to be accurate to ensure that employees are paid the right amount and on time, while helping to reliably predict cash flow, future earnings and more. Your finance and HR teams may be highly skilled but if they have many other jobs on their hands then these could prove a distraction. Using a managed payroll system can improve accuracy as all data input will be checked and validated. This can also help to ensure that things like overtime will be paid promptly and that the numbers all add up.

Stay in Control

One worry a lot of businesses have about using a managed payroll system or outsourcing is that they won’t be in control any more. That’s not the case though, as you still control the data input into the systemand can choose exactly which functions you wish to hand over. If there are certain elements you wish to retain then this can be done, while detailing exactly which parts you want taking care of.

Reduce Theft and Fraud Risks

Payroll and tax regulations can be complicated but with a good managed payroll system these can be factored in. Along with being accurate this can reduce the chance of getting into legal trouble, highlight any instances of theft and fraud. The risk of controlling payroll inhouse is that if there are issues then an internal audit will be required to sort them out, whereas with a managed system it should be fine.

Consider a managed payroll system for your business to make improvements and free up time to keep your company growing.