Companies Streamline Processes By Outsourcing Payroll

Finance and accounting processes may be regarded as an integral part of a company but it is also among the most tedious.  This is why companies are constantly looking for ways to make it more efficient and more manageable. Under the different finance and accounting processes, one that stands out is payroll outsourcing. This is the finance and accounting branch that is commonly outsourced by companies, as compared to others such as accounts receivables and accounts payables, because outsourcing this function often results in more efficient processes, reducing paperwork for companies.

As huge piles of paperwork are inefficient to say the least, companies are looking towards payroll outsourcing in order to streamline their payroll process for companies to run like well oiled machines. A good example of this is Capgemini UK’s (EPA:CAP) contract with the Cornwall Council.  The contract worth £7 million would enable the Cornwall Council to replace the paper-based finance, purchasing and human resources processes that were passed on to them. Capgemini UK and Cornwall Council are both aiming towards eliminating duplication while reducing costs as they sign the aforementioned contract which will be executed over the next 15 months.

Outsourcing payroll solutions have allowed companies to enjoy benefits such as being able to avoid facing penalties fined by government tax agencies which may be caused by late and incorrect filings of documents and payments needed.  By having outsourcing companies do this particular branch of your business, penalties and surcharges may be avoided.

Meanwhile US grocery retailer and distributor, SUPERVALU (NYSE:S) has entered into an agreement with Ceridian Corporation, a provider of human resources solutions. With SUPERVALU’s Retail Accounting Services’ growing number of customers, it seemed a logical choice for them to seek the assistance of a solutions provider for finance and accounting outsourcing solutions. In this agreement, Ceridian Corporation will provide SUPERVALU with a payroll system that will allow SUPERVALU to optimize their productivity. SUPERVALU’s reason for the outsourcing move echoes sentiments by various other companies, as they seek to optimize productivity while meeting the demands of their workload.

Another notable development is TruPay’s announcement of a new agreement with Georgia-based human resource management service provider, PeopleStrategy. They have recently made known to the public that they have signed an agreement with PeopleStrategy which would cover streamlining administrative tasks of TruPay, including compensation management, HR administration, and time and attendance among others. Having delegated such tasks to a solutions provider, TruPay will now be able to focus more on their core business and will allow them to further strengthen their position in the market.

Maximizing resources under time, budget and even manpower constraints is important for a company. Which is why it is essential for many types of companies to execute the decisions that would ultimately benefit their company the most.  In terms of finance and accounting, while the task is admittedly essential in a business, the outsourcing of processes such as payroll could prove to be a beneficial and crucial undertaking, helping them to optimize their processes, maximizing productivity and performance.

Author: Jamee C.