Management should look for ways to outsource activities which are outside the company’s in-house expertise. When a company recognizes internal business processes are being done, which are not part of the core business, alternatives should be considered for improved efficiency.
The core business is that which supports the company’s reputation. It is how the company is known and recognized within the market it participates. The core business establishes the primary activities that a company focuses through its in-house expertise. When new employees are hired, the skills pursued are those that will support the core business. In addition to determining the skills and expertise of its employees, the core business will often times establish the entire culture within the organization. The culture will naturally develop from the people who have the required skills to perform the core business activities.
A business should outsource those activities that are not within the realm of the core business. However, a small business can sometimes find itself performing activities that are not within their area of expertise. This situation can occur because there is so much to do and so little time to do it all. Even though there may be recognition by upper management that activities are happening which are not part of the normal business, decisions are not made to take the steps to outsource those activities.
As long as a company stays focused on its core business, the business will run efficiently and more cost effectively.
Payroll is an example of a service that any business with employees must perform. However, the service may well not be part of the core business. Unless the company is in the business of providing payroll services, performing payroll would represent a time and money drain. Trying to perform payroll in-house would pose a great financial risk to the organization because of tax and regulatory requirements. This is why almost all companies outsource their payroll services.
Payroll Unlimited is a leader in this field. Payroll Unlimited offers cloud payroll services that lets a business focus on its core business, while the complexities of payroll are reduced to simple data entry.
Carissa Swain’s position on the matter is stated in her post There Is NO Magic Payroll Button.
“Payroll and related expenses often take the biggest chunk of a company’s bottom line. Because of that large line item on the income statement, and the perception that payroll processing is a simple matter of multiplying an hourly rate by the number of hours work, payroll is typically considered an accounting function. However, before getting to the calculation of hourly rate times hours worked, there are myriad regulatory, legal, and taxation matters that a payroll professional must consider.When I compartmentalize payroll among my many areas of responsibility, I consider it a legal matter.”
A cloud payroll service, like Payroll Unlimited with its Data Entry options, can go a long way toward simplifying the payroll process within an organization. Below is an example of data entry features.
- Employee Pay Entry Screen – For Overrides, Extra Checks, Real-Time Gross-To-Net
- Easy Universal Import – Import From Almost Any File Type
- Pre-Process Register – Allows You To Verify Before Submitting
To learn more about simplifying the payroll process within your organization, contact Payroll Unlimited for free consultation at 201-703-1313
One thought on “Outsourcing Payroll Helps the Company Focus on their Core Business”