From complex calculations and customized adjustments to tax payments and annual form fill-ups – outsourcing means all this done for you in an affordable rate. You can focus on your core business operations and aims while the tough job is done by industry professionals who are skilled and apt in the usage of updated, best practices and state-of-the-art industry technologies.
It’s not like magic. You still have to provide the hours’ data to the service provider. The provider might also have the requirement for other data.
Anyway, here are four main things you should know before buying a payroll processing solution.
1. Cost is the king
Cost consideration comes first, no doubt at all there. If you can train your employees and have some genius accounting work done in-house by spending less than outsourcing to an appropriate and preferred BPO service provider, there’s no need to outsource at all.
Take into account all charges, seek hidden charges, calculate for long terms – both, your in-house costs and outsourcing costs. Have a serious discussion and comparison of various packages and service providers to arrive at a cost-effective decision.
Company experience tells the most accurate tale about the efficiency of the service provider. How long has the company been in business? Has the company worked for clients from your industry? If yes, then how many? Make sure you don’t believe the service provider’s facts blindly though.
Acquiring this information by yourself can be tough, but if you know how to do your homework in the corporate world, you’ll pull it off easily.
2. Transparency and being specific
Transparency is important for building trust. The service providers understand that. Exploit that fact. Do all that’s necessary to come to an agreement where you have maximum transparency.
Transparency happens on both ends. So, be specific about what you want and what you don’t. Clearly communicate that. Figure out what’s the exact nature of their service, what payroll functions they’ll work at, what stuff goes untouched, etc.
3. Whom do I talk to?
Knowing who to contact in case of any problem is a must. Make it clear. Ask who will be handling your company’s operations, or which team. And obviously, how do you personally reach them, monitor their work, and track your company’s data without going through other parts of the service provider’s business like the common technical support helpline.
Talking to those who will be working on your accounting figures to process payrolls will also clear a lot of other things like how friendly they are and how important your company will be to them.
4. Reliability, security, privacy
Of course you have to be concerned about these three factors. How reliable is their cloud storage and computing? Outages or inaccuracies can’t be accepted. How do they protect your privacy and deal with online security issues – whether emanating from outside forces or their own workers?
Knowing all this is high-priority. Only when satisfied with the comfortable levels for these factors you should think about buying a payroll processing solution.
Contributed by Jessica Page, Jessica has worked in the business industry in many fields, but payroll and accounting are two things that kept her busy for most of her professional life. Jessica knows the mentality of businesses and their functions. Her knowledge of core corporate processes helps her build efficient payroll processing strategies for startups and big corporates alike. To know more about her work, visit: