Business owners are being robbed of precious time as they grapple with payroll duties instead of focusing on company strategy and growth.
That’s the view of a leading accountancy firm after data from a survey of companies across Cumbria and Dumfries and Galloway yielded some surprising results.
Statistics from the poll by Saint & Co revealed that 20 per cent of businesses spend upwards of 20 hours a month dealing with salary runs and associated tasks.
And figures also show that although more than a third of respondents dislike running their own payroll, they continue to do so.
Jackie Hemus, payroll manager at Saint & Co, said: “Our survey threw up some surprising results, especially the amount of time some businesses are spending on payroll.
“The process can be a real silent time thief, and before you know it, the best part of a week has disappeared.
“There was an acknowledgement from many companies that they disliked payroll, which is unsurprising given the process involves buying software, installing updates, ensuring you’re compliant with all HR regulations, and more. And the more employees you have, the greater the payroll headache becomes.”
Two of the most cited reasons for businesses keeping payroll in-house were to manage costs and to ensure an overview of operational expenditure.
And while these are acknowledged as worthwhile considerations, Jackie believes there are some misconceptions about outsourcing.
“Payroll services can be delivered for a small company for as little as £50 per month, which often surprises business owners who imagine the cost to be much higher.
“When it comes to operational control, there’s no need to feel any of that is lost if a third party completes payroll services on a business’ behalf.
“Outsourcing payroll simply means there are more hours in the day for business-critical tasks, strategic thinking, and getting things done.”
