The Need for Payroll Outsourcing
The most common management mindset in India is to do everything in-house. This is a combination of culture and inexpensive labour. ‘I want a tight grip on my finance, and am certainly not going to get someone else to handle that’, is the most often heard thought process spoken aloud.
This process is changing. Competition has intensified, both with Indian counterparts and with the easy entry of foreign entrepreneurs and business houses. Efficiency, productivity, and profitability have become more difficult to achieve in an open market. Competition is always sniping at you both at the regional and national levels.
For a business to be competitive, it is important to focus on core issues. When you start an enterprise, you start with a vision. As you move forward, a smart businessman evolves and adjusts his business plans to meet the market demands. That is the only way to survive and grow. Internally you create departments to focus on various aspects of your business and give the department heads fewer issues to worry about. But, as a CEO, it is your job to make sure all these integrate smoothly and function well together.
In such an environment, outsourcing non-core areas make a lot of sense. Unless you are a payroll company, managing the complex payroll system in India is a distraction that you can do well without. We are challenged with both central and state rules and taxes that have been implemented over the years. In addition, every budget adds some new clauses that you have to remember and incorporate.
The Five Simple Advantages of Payroll Outsourcing
Payroll processing is a job that has to be done at the end of every month. This means keeping details records of attendance and productivity, in addition to tracking loans, advances, and other payables and receivables. Processing all this does take time. A professional payroll system managed by people who do this day in and dayout will certainly save you a lot of time. Again, if you compare the cost of having a few payroll personnel against payroll outsourcing to a professional payroll company, you will never take a decision. A payroll system that performs like clockwork and makes very few mistakes goes a long way in boosting the morale of your workforce, increasing your productivity, and your profits.
Efficient Data Processing
A professional payroll outsourcing company spends quite a lot of money and time developing a system that is up-to-date, and staff that is selected and trained to have extensive knowledge of the Indian payroll. Duplicating this in-house is a waste of funds, and better spent on your own growth requirements.
Efficient Data Processing
The Indian tax system is intricate and one needs to be fully involved to understand how to handle that. This is a job that the payroll outsourcing company does well.
Incorrect filing of taxes leads to stress and for the employees. Fines could be quite high. More than 40% of businesses worldwide spend a lot of effort understanding, explaining and clearing incorrect tax filing.
Correct filing of taxes will lead to savings all around.
I have always been surprised by the fact that every employee seems to know every other employee’s salary to the last detail. This becomes quite a challenge when you are discussing performance and growth of the employees. Payroll outsourcing companies maintain a high level of security of their data. It is literally impossible for one employee to be aware of another employee’s salary details unless it is divulged internally. In addition, this security saves your payroll being pried upon by your competitors.
Payroll companies use the latest possible technology to run and manage your payroll system. In addition to ensuring your payroll is managed and executed efficiently month after month, these systems also keep your employees abreast of payroll processing. Through email, SMS and other social media tools, you employees are kept aware of what they are being paid and when.
At TalentPro, which is one of the best Payroll Companies in India, we use the most advanced computer systems to process your payroll. When you have ten or ten thousand employees, we take the same care and attention to each payroll and ensure that all your tax and other levies are up-to-date and submitted to the relevant authorities. Our staff will be to answer any question you or your employees may have regarding the earnings and deductions.