When you operate a Singapore business, many of your efforts go toward basic accounting functions: tracking revenues and costs, profits and losses, and one of the most labour intensive tasks: payroll processing.Every pay period, you need to enter time and process withholdings across your organisation. These tasks are often repetitive, but they require a great deal of time from your employees that could be better spent on higher-level activities. Payroll outsourcing in Singapore can free up those resources and make your accounting team more efficient.
Provide Initial Information
When you work with a payroll outsourcing partner, your first step is to secure commitments on security and confidentiality. This organisation will hold a great deal of personal information for all the employees in your organisation, so you need to know both that it can protect that data and that it will commit to do so.
This is critical because the process then begins when you provide the essential information on your employees: names, tax information, withholding details, and everything else that goes into processing pay cheques during each pay period. This provides the framework through which the Singapore payroll outsourcing partner can do its work on your behalf.
Enter Time Electronically
Once the outsourcing partner has this information, your next step is to establish the mechanism by which information transfers from your location to the payroll outsourcing servers. Software options for online timekeeping expand almost daily, so you can have your employees enter their hours or use tracking information to identify the times they are on site working. Your salaried employees, meanwhile, can be processed automatically, with only sick and vacation time tracked to go into your accounting.
When you send this data file to your outsourcing partner, they will take care of any manual data entry required to process your payroll. This cuts dramatically into the on-site efforts in the mundane data entry aspects of processing payroll. Multiply the time saved over the course of every payroll in a given year, and payroll outsourcing can pay for itself many times over, every year
Focus on the Anomalies
This does not mean, of course, that you have no need for staffing in the payroll area. Instead, it means that your payroll department can be leaner and focus on areas of concern. Instead of spending time on data entry, they will receive and review reports for any anomalies they might encounter. If time on site and time in payroll deviate substantially, they have time to investigate. If employees make changes to their withholding, earn raises, or change departments, your payroll team becomes free to handle this, rather than trying to scramble to keep up on top of the everyday tasks they have to manage.
Over time, this gives you more freedom to hire better, more qualified people to operate your payroll needs. You gain a dedicated team for the rote entry work that otherwise would occupy your team, and an opportunity for your team to do better, more interesting work in a lower stress environment.
Some people think of outsourced payroll as a way to take away from your team. If you do it right, though, it gives you a chance to get the most from the best people you have.