Some businesses in Hong Kong prefer the control of doing their book keeping in house although it is hugely time consuming and can take them away from focusing their time on other areas of their business that drive income and profit. Some businesses use apps or online solutions whilst others do all of their book keeping manually, studies have found that whichever in house method they use, a large percentage would welcome the idea of outsourcing their bookkeeping and here’s why.
Saved time
Payroll processing takes time and attention to detail, regardless of how many employees a company has. This frequently comes at the expense of valuable time that could otherwise be spent on more pressing business priorities such as revenue generation or customer service.
Owners have more time to focus on what is important to them by outsourcing payroll to a reputable provider. In many cases, payroll outsourcing in Hong Kong also offers a number of options for maximizing time saved throughout the pay period. Additional tasks, such as new hire monitoring or benefits administration, can be easily incorporated into the outsourcing mix, and business owners can specify how frequently they want to be contacted about payroll-related tasks. If there are no inconsistencies or issues, payroll providers will most likely only need to contact owners once per pay period to notify them that payroll has been updated accordingly.
Printing, signing, and distributing pay checks or pay slips
After calculating the payment amounts for each employee, the physical checks must be produced, signed, and distributed. Because some employees are likely to have direct deposit, those payments must be verified and processed electronically, but pay slip must still be made available to them. Furthermore, these records must be kept securely for tax and reporting requirements.
Payroll is calculated at the end of each pay period
Every employee’s hour’s must be totalled, approved for accuracy, and multiplied by their authorized salary level each pay period.There are applications available like QuickBooks that can help, you might find this informative blog worth a read, apps like these can ensure thatthe proper amount of taxes are calculated and deducted from the gross pay to arrive at a net amount.
Additional calculations must be made if the employee also receives benefits or has other deductions, such as child support or pension scheme contributions. When you multiply each of these calculations by the number of employees in your company, it’s easy to see why calculations alone can take up a good portion of your week.
Compliance
Regulations are a big deal for any business, making sure you are up to date with the ins and outs of Inland revenue can be a real headache and when it comes to payroll, regulations couldn’t be any more important, some surveys suggest that over half of the participants said that peace of mind is the biggest thing that they would hope to achieve when outsourcing payroll responsibilities. There is a saying somewhere that says something like, ‘you can’t buy peace of mind’ you could have a very good go at it though!
