How does outsourcing payroll benefit the CFO’s finance organization?
Ultimately, if a firm doesn’t invest in modern payroll technology, it can’t achieve optimum profits. Inaccurate payroll data is expensive and high risk. Anomalies that would be detected by artificial intelligence and other technologies, including robotic process automation (RPA), are inherent in the best payroll partners’ infrastructures. Other pros of outsourcing payroll include:
- Reduce costly failures and leakage risks. Payroll can account for 70% of total business costs. Unchecked payroll processing errors can hit profits hard until detected. Manual payroll admin that is inefficient, mundane, repetitive, and prone to human error is ideal for automation. This will reduce costs, and the risk of fraud, and data theft. and help ensure correct and consistent payroll and financial information.
- Reduce payroll technology costs – capital and operational. Outsourced payroll processing services delivered as a cloud service are agile for end-users and move the technology investment from a capital to an operational cost. A recent Gartner report revealed more than 90% of a typical IT budget goes on maintenance, leaving less than 10% for innovation and process improvement.