The Financial Benefits of Adopting a Cloud-based Outsourced Payroll Solution

The benefits of the cloud have been well documented. Cloud solutions are accessible anywhere, are more flexible, offer agile service, there is no hardware to maintain, no manual backups to keep on top of, no more paper-based processes, and most importantly, no large capital outlays.

Edmund Pohl, Head of Outsourcing at PaySpace, a leader in payroll and HR software, shares his top financial reasons to move your payroll to the outsourced cloud now, if you haven’t already.

“One of the most compelling reasons for me is that companies who choose to outsource do not need to pay license fees, and they need only pay for what they use; no more, no less. However, with PaySpace Outsourcing, we take this a step further. It is important to note that we own our software. We are the owners, purveyors and designers, so there is no additional software cost when using our services, because the software is already ours. This is a huge differentiator that really sets us apart from our competitors.”

Further to this point, Pohl says PaySpace Outsourcing also has full command and control of its software, and therefore a far larger degree of influence when it comes to any possible adaptations in the software or additions to it. “We have direct say in this, as well as direct access to the people who make these decisions, which enables us to give input on important decisions aimed at benefiting our customers at the end of the day.”

According to Pohl, using an outsourced solution improves payroll accuracy and there is also money to be saved here. “If you don’t make any mistakes it lowers the chances of paying for things that you might not strictly have to. This leads to a secondary round of savings as there are after-costs involved when it comes to making extra payments, or for any fees that the customer might not be able to recuperate.”

Also, he says when your payroll is compliant, you do not end up paying too much tax, UIF or SDL. “This applies to tax efficiency too. Using an outsourced solution ensures that you don’t tax anything at the wrong rate, or pay more than you should be paying. This is particularly applicable in the wake of the Covid-19 pandemic, with various initiatives aimed at helping beleaguered businesses during this trying time such as ETI and TERS. Using an excellent payroll outsourcing solution eliminates the potential for errors as PaySpace Outsourcing handles the entire process for its clients and helps all of them navigate this highly complex regime.”

“There are highly specialised areas within payroll. For example, we have come across a company that specialises in Workmen’s Compensation Assessments. They look at what a company has been reporting, its risk category and suchlike, and once done, ensures that assessments are done correctly resulting in direct cost savings,” he explains.

One of PaySpace Outsourcing’s greatest strengths, he says, is that the company’s experts know who to bring its customers into contact with. “We have been in the industry for a long time. When it comes to certain highly specialised areas, we have, over the years, developed a list of highly accredited specialists in order to offer our customers the benefit of referring them to pockets of excellence. This is another way they can achieve a cost saving. Some of these specialists don’t bill customers a flat fee; the only charge they level against them is 10% of any savings they can quantify through their service.”

Finally, Pohl says cost is a relative concern for him. “It should not necessarily only be equated to rands and cents. There is a lot to be said for gaining efficiency and avoiding issues, which, while it is hard to measure quantitatively, can become very apparent when there’s a remarkable reduction of effort or suddenly having significantly fewer challenges to deal with. If you are using a service that guides these things with foresight, a lot of hassle can be avoided. There’s a lot of intrinsic value in this, as there is value in simplicity, in forward planning and in anticipation.”