There's nothing stopping you managing your payroll processes in-house. In fact, thousands of organisations in the UK handle their own payroll on a monthly basis without any problems.

However, it's no secret that running payroll is often a complex and time-consuming task that can be especially tricky for staff with no meaningful financial training. Add to this the fact that teams will need to navigate ever-changing legislation in this area, and it's no wonder that many businesses decide to hand over their payroll requirements to a specialist provider instead.

By outsourcing their payroll, companies can:

Save time
Instead of using their working days to take care of payroll, staff will be able to focus on driving the business forward.

Minimize errors
Mistakes can have significant consequences, not only for a business, but for its employees, who are relying on the firm to pay them what they owe. A payroll provider's job is to keep errors to a minimum.

Ensure all their data is secure
Payroll companies have state-of-the-art systems and processes in place to keep their clients' confidential information safe.

Improve compliance
It's a payroll provider's responsibility to keep on top of recent government legislation and apply these changes to payroll as necessary.

Reduce unnecessary expenditure
Staff sickness and turnover can pose a threat to any business's cashflow - especially if its finance team are not sure how to account for either when processing the payroll. Payroll specialists help companies manage these instances more cost-effectively.

Get rid of any tech headaches
HMRC-compliant payroll packages can incur substantial software and/or hardware costs - and companies need to make sure everything is always up to date. A payroll provider will manage and pay for best-in-class technology and update it as needed.

Get expert guidance regarding workplace pensions
Workplace pensions need to be implemented correctly, otherwise a business will run the risk of getting fined. A payroll company can help companies set up and structure their auto-enrolment requirements in the right way, ensuring compliance from day one. Plus, they may have access to reduced employer charges for some pension providers.

Make sure their payroll payments are reliable
It's non-negotiable: payroll payments must reach staff on time. Most payroll providers will have access to enhanced business services that allow the payment of wages via BACS.

Set a contingency plan in place
If there's only one person within your business who knows how to process payroll, what happens if they go on annual leave, need to take extended absence through sickness, or decide to leave the business entirely? Outsourcing your payroll to a specialist provider like Abco takes away the risk that these skills will leave your company when your payroll staff move on.