In Singapore, running a company involves a lot of overheads.
Besides the core activity of the enterprise, there are many essential activities which take a lot of time and expertise.
The business owners still have to invest in these activities, thus losing focus and energy for the primary business.
As a company grows in size, it requires more and more people to handle specific tasks like human resources, security, accountants and legal works.
With so many employees, the company has to develop sophisticated payroll system for employee services.
The quality of the payroll system directly affects employee motivation.
Running a smooth payroll system requires good software and right people.
Though a good payroll system could be developed in-house, the cost of developing and maintaining it can often outweigh its performance.
A better option is to outsource to payroll service outsourcing team.
Outsourcing the payroll system is not a new concept, and most of the large companies prefer to outsource.
Most of the payroll service providers are well-versed in providing customised solutions for new businesses.
Whether payroll is maintained in-house or outsourced, an excellent payroll service must be able to deliver on four essential characteristics.
First, one is Accuracy.
There is no margin for error in clocking hours and making payments.
For small businesses most of the systems are manual, so the chance of mistakes is more.
But it is harder to correct an error due to the system.
Moreover, the cost of installing and maintaining sophisticated payroll software is too much.
Outsourcing payroll service can reduce this monthly cost.
Second is Complexity.
The payroll service is not just about distributing salaries to the employee; it should have complex rules to deduce leaves, taxes, medical claims, etc.
Implementing these rules are not simple.
With the use of payroll software, these rules can be easily applied.
A third and related characteristic of payroll services are record-keeping.
These days, records are hardly kept in files. They are prone to damage and difficult to manage.
The software provides many options for record keeping.
While maintaining data on computers require security features, they also offer the possibility of simplifying analysis and reporting.
The last characteristic is Integration.
A good payroll system should integrate with other related systems.
A good payroll system is integrated with local banks to deposit salary in employees’ accounts directly on a monthly basis.
It should be easy for the staff to view or print the payslip and salary reports. More advanced systems can include alerts or email on critical payroll related events.
The importance of quality payroll system is linked to the reputation of the business and the character of the business owner.
Establishing a payroll system is necessary overhead that reduces the focus from the company’s core competency.
An organization should weigh the benefits of setting up and maintaining a payroll system versus outsourcing it.
Good payroll service depends on a mix of right people and software.
The success of payroll services depends on accuracy, complexity, record keeping and integration of systems.
Should you need assistance or would like to find out more about payroll processing services in Singapore, please send an email to Contact@AccountingSolutionsSingapore.com, and our business advisor will contact you.