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The Lanturn Team
In a competitive market like Singapore, businesses must do what they can to stay competitive — but doing it abruptly can do more harm than good because staying competitive typically involves expansion that would cost the company money. A familiar problem business owners have when trying to expand is striking a balance between what they currently have and what needs improvement and development.
Business owners and founders must have the flexibility to adapt their management style as their company expands. Being open to alternative solutions like outsourcing is a great way to help businesses expand their operations without spending as much.
Growth vs Profitability vs Sustainability: Strategies a Company Can Use in an Economic Recession
What is the difference between growth and profitability, and why focus on one, especially during an economic recession? Find out the answers in this article.
Outsourcing is the business practice of getting a third-party provider to perform various services traditionally done in-house, like sales, marketing, administration, and even accounting. Many companies globally do this to not only cut costs but also lighten the company's current workload so that they may focus their efforts on other important things.
One typical business function that companies outsource is the payroll process, which is typically called payroll outsourcing. One may feel a bit uncomfortable about allowing a third-party to handle such a task, but this carries many benefits you’ll see as you read along.
In a competitive business environment like Singapore, businesses have evolved to use cost-effective methods to increase their productivity and growth. Payroll outsourcing is a beneficial service because it relieves the current workforce of handling payroll tasks while ensuring that all the best accounting practices are followed consistently.
Here are five top reasons why you should outsource your payroll:
Time is gold. It becomes even more apparent when you are running your own business. Payroll can be very time-consuming and challenging for a non-accounting practitioner. Owners could have better allocated the time spent on payroll thinking of a new product or meeting up with an investor. If you delegate your payroll to a third party, you can free up time to focus on other crucial tasks for improving your business activities.
Furthermore, outsourcing payroll helps you prevent unanticipated time losses that could happen if you make a payroll error or an unexpected audit. Your service provider will assist you in avoiding mistakes, allowing your company fewer setbacks.
Acquiring payroll services from a service provider provides you access to a team of payroll management professionals who efficiently handle all your payroll needs. It can also be advantageous if your company plans to operate in Singapore, as the country has laws that differ from your home country.
Getting your payroll staff can be good, but the extra training and constant monitoring may cost you additional time and resources, which you could have spent elsewhere. It is why some small businesses prefer to outsource first while they are still growing and then move to an in-house payroll team once they have stabilised.
Even if outsourcing is an additional expense, it is an expense that can save you more money in the long run compared to having an in-house team. One advantage outsourced payroll service providers have is that they have tools and experts that are typically too expensive to secure yourself. The resources that help them do payroll tasks become your resource, making the entire payroll process more straightforward, easier, and more efficient without spending more than you should.
Another perk is that these payroll providers can keep you updated with accounting deadlines, tax regulations, and labour policies which helps your company avoid potential fines or penalties.
Operating globally would require your staff to become familiar with each jurisdiction's regulations and procedures in sending out salaries.
Salary remittances will be less complicated with assistance from the right service provider. Some service providers can also provide your international employees with payslips bearing the remuneration breakdown in their local currencies. All these would lessen the burden on your accounting and HR staff.
Compliance with laws, regulations, and mandated standards is some of the challenging responsibilities SMEs have to deal with, especially when foreign governments are involved. Third-party payroll service providers have experts with in-depth knowledge of payroll laws and regulations, which can reduce your company's exposure to potential legal issues.
But remember that not all service providers know about every country's laws. Be sure to check with them and ask which countries they specialise in.
We at Lanturn can help you manage your employee's pay, remit salaries, file your CPF and other government-mandated contributions, and handle other payroll-related tasks efficiently.
We can assist you in avoiding data breaches, erroneous payroll crediting, or late payouts, which can disrupt your operations when left as is. Remember, as a business owner, your time is invaluable. Rely on Lanturn to help you with operations, allowing yourself more time to invest in growing your business.
Availing of Lanturn's secured payroll services allows you to take advantage of the following:
Creation and submission of monthly CPF contributions
Preparation of payslips
Timely submission of IR8A and IR21 income tax forms
Filing of year-end tax returns
Preparation of customised and standardised reports
Remuneration calculation for new hires, resigned or terminated employees
Assistance in the electronic filing of NS Men Make-Up Pay, Maternity, and Child Care Claims
Calculation of payroll following company policies and the respective legal requirements of each jurisdiction
We produce a monthly report that contains all employee salary information, including contributions, deductions, and reimbursements, for your perusal. To top it all off, Lanturn's cloud-based technology platform allows clients access to payroll and claims software, fully compliant with MOM regulations.
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