You can be on Entrepreneur’s cover!

The Importance of Outsourcing Your Payroll One of an organisation's biggest overheads is that of salaries and wages. And yet, if these are not processed on time, it can negatively impact staff morale and create the impression that the company is not financially stable.

By CRS HR And Payroll Solutions

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur South Africa, an international franchise of Entrepreneur Media.

Bigstock

For a small business, payroll is normally the responsibility of an accountant or bookkeeper, but even administrators can sometimes be roped in to do the job, even though they have no expertise in the matter. This is where the value of outsourcing your payroll comes in.

When should you outsource?

  • If you want to grow your business but are not aware of ongoing legislative changes that could pose a risk to your company, then it is better to get professionals to assist.
  • Accountants and bookkeepers are not specialists and do not keep up with the compliance environment. If you outsource your payroll, you enable them to focus their core duties and not get bogged down by legislative complexities.

How to choose an outsourced service provider

Understandably, payroll is a sensitive subject dealing with highly confidential information.

This is often the last thing a small business owner wants to outsource. It is therefore vital that the company does its homework and researches the potential outsourcing partner thoroughly.

Instead of going with the first available service provider or the cheapest one, here are some questions to ask:

  • Is the service provider a one-man band and, if so, what backup resources are available?
  • Is the service provider a recognised payroll provider belonging to a professional body?
  • Do they have the necessary training and skills on payroll?
  • What does the service provider do to ensure it stays up to date with legislation?
  • How secure is the payroll data and can the service provider take on historic data?
  • How easy is it to recover your payroll data in the event of a disaster?
  • What value-adds can the service provider offer? These can include anything from leave management and third-party payments, to employee self-service, time and attendance management, and any other related human resource service.
  • Can they process salaries and/or wages hourly, weekly, fortnightly, or monthly?
  • Can the service provider accommodate your growth requirements if you open new branches?
  • Is the service provider able to assist with payrolls in other African countries, manage their currencies, and deal with their regulatory environments?
  • What processes are in place to ensure the timeous processing of payrolls?

Related: How Outsourcing HR Can Optimise Your Human Capital

The advantages of outsourcing your payroll

One of the most obvious benefits of going the outsourcing route is freeing up your resources to focus on your core strategic objectives. This ensures you provide quality of service and control costs while an experienced partner takes care of your payroll.

Here are a few other benefits:

  • Reduce operating costs.
  • Statutory compliance and consistent service delivery.
  • Access to the latest technology, as well as skilled and dedicated payroll resources.
  • Access to a secure, risk-free and confidential payroll environment.
  • Increased flexibility and responsiveness.
  • Streamlined internal processes and procedures.

Related: The Myth That Past Financial Performance Will Help You Move Forward

CRS HR & Payroll Solutions is a provider of services and solutions to the Human Resources and Payroll markets in Africa in general and South Africa in particular. Established in 1985, the company has served as the premier provider of HR systems, solutions and remuneration products to business across expanding market segments. Our product portfolio encompasses everything the decision maker in business requires to support the rollout of an effective HR and payroll strategy. The company’s foremost reputation as a reliable service provider and trader in rapidly expanding market segments and to blue chip companies is underpinned by its affiliation and partnership with a number of respected, industry-regulatory bodies. CRS is a signatory to the Information Technology Association (ITA) and a member of the Payroll Authors Group of South Africa. It is also a member of the South African Payroll Association, South African Rewards Association and the Institute of People Management. Its expertise and business acumen within these mission-critical aspects of business management have ensured that it remains an ultra-competitive, secure and unrivalled market performer. CRS provides a service to numerous countries throughout Africa, including Egypt, Kenya, Nigeria, Namibia, Botswana, Swaziland, Lesotho and Mozambique. The continent is viewed as being a thriving, high-growth market and one that the company will continue to add value to.
Side Hustle

This Dad Started a Side Hustle to Save for His Daughter's College Fund — Then It Earned $1 Million and Caught Apple's Attention

In 2015, Greg Kerr, now owner of Alchemy Merch, was working as musician when he noticed a lucrative opportunity.

Business News

Side Hustles Are Soaring as Entrepreneurs Start Businesses Working Part- or Full-Time Elsewhere, According to a New Report

The younger the entrepreneur, the more likely they were to start a business as a side hustle.

Entrepreneurs

10 SA Entrepreneurs Who Built Their Businesses From Nothing

Remarkable stories about local entrepreneurs who built big businesses and well-known brands up from humble beginnings.

Health & Wellness

This 103-Year-Old Doctor Opened Her Medical Practice Before Women Could Have Bank Accounts — Here Are Her 6 Secrets to a Healthy, Successful Life

Dr. Gladys McGarey started medical school in 1941 and helped pioneer the holistic medicine movement in the U.S.

Entrepreneurs

26 Of The Richest People in South Africa

Here are 26 of South Africa's richest people, but how did they achieve this level of wealth? Find out here.

Business News

FTC Proposes Rule to Crack Down on Fake Reviews and Deceptive Marketing Tactics

As much as 30-40% of online reviews are fake, according to a new report.