Outsourcing Payroll Operations for Greater Benefits

Employee Management The Early Years

Employee management is a herculean task for large enterprises all over the World. But the stress was greater in earlier times due to manual bookkeeping.

Despite a large force of accountants many organizations suffered from inefficiencies and blunders. The cost of the large force of accountants and the time consumed in the process impacted the performance as well.

Bookkeeping and accounting was a practice that had been developing from the 14th century onwards, and there were no flaws as such. But it was the enormity of the task, and resources that impacted business growth due to a number of related human errors and issues that proved as a hindrance.

Till the year 2000, there was no solution for these system drawbacks as automated solutions were not perfected by then. Though Peoplesoft did come up with a payroll software it was still not as desired hence there was a long wait. By the year 2000 and onwards the system was developed to a high level of perfection and was commercially available.

Payroll Outsourcing

At the present juncture, there are more than 2000 payroll companies in the USA. And this figure stands as testimony to the importance of this service. Now fully automated salary management systems are available and are known as payroll software or HRMS abbreviation for human resource management systems. For payroll management, an extensive infrastructure is required in terms of computers and networking components. Internet connectivity has become widespread but comes at a cost. A large number of companies that are not large by any means and fall into the SME category in India cannot have their own set of management information setups. HRMS is part of MIS which stands for management information system incorporated whence computerization came into the picture.

By the year 2000 small time accounting systems had been developed and thus computerized accounting became possible. These did help in online bookkeeping but were not used as payroll systems were at a nascent stage. The small-time bookkeeping or accounting software did not have the ability to integrate with other internal systems due to incapabilities.

MIS System Integration

Whence Tally and Tally Prime accounting software came into the picture integration with payroll systems became a possibility. Tally could successfully integrate with application software like Spine HRMS in India. Subsequently, MIS system created a network of integrated systems that complimented each other and enhanced reporting like never before.

Both Tally and Spine HRMS are available in India, and the compatibility with cloud-based systems has enabled SME participation. The availability of cloud services meant that no in-house infrastructure was required within small organizations.

Small businesses and SMEs that could not afford the establishment of accounting infrastructure, or it was not part of their strategy could still benefit. A large number of companies now provide payroll outsourcing services in India.

These companies being dealers or resellers could avail their infrastructural capabilities and offer payroll management services to their clients commercially. The payroll service providers provide several workplace solutions to SMEs. Their services include: • Payroll Processing• HR Support• Employee Benefit Administration • Leave Management• Attendance & Time Management • Tax Reporting • Regulatory Compliance • Data Security

Thus, these integrated solutions now form the backbone of many small enterprises and are becoming popular day by day. The systems provide all that is mentioned above besides reporting or working on all connected smaller issues.

Payroll Outsourcing Benefits for Small Enterprises

Cost control favors SMEs whence they outsource payroll management to service providers. Besides saving time and money recruitment overload does not take place. They can employ a small workforce and conduct business.

The cost depends upon the frequency of salary distribution, the number of employees, and some specific services that may be required. SMEs can control what aspect of salary or employee management they wish to outsource and save money. Delegating sundry tasks to other companies enables a core focus on strategic objectives for the small players.

In India, the payroll outsourcing service providers are cheaper. They charge per payroll processing fee and an annual base fee.

A group of writers at Above the Fold Digital Marketing and Web Development Company in Mumbai India