The sole purpose of business is to generate a regular cash flow and to increase profit margins to subsidise the businesses growth and pay the employees of the firm. Increasing profit margins is the Holy Grail for all firms and doing this may be on the back of securing new key accounts or by streamlining the business, to increase efficiency and productivity whilst also cutting unnecessary operation costs.
The sole purpose of business is to generate a regular cash flow and to increase profit margins to subsidise the businesses growth and pay the employees of the firm. Increasing profit margins is the Holy Grail for all firms and doing this may be on the back of securing new key accounts or by streamlining the business, to increase efficiency and productivity whilst also cutting unnecessary operation costs.
Even though a business should aspire to increase profit margins by acquiring new business, it is not always viable to live in hope, so internal strategic decision making could not only streamline your business, but also maximise the skills of the workforce and in turn increase productivity.
When looking internally, it is advised to first look towards the staff. If the staff are appropriately designated to a job within their skill set then they can be focused on tasking targets, whereas if they are not overly competent in that area then there is a chance that the targets won’t be met as they will take time struggling on with it.
A second thing that may enhance productivity is the facilities on offer, for example, if your computing software was up-to-date or even customised to incorporate a variety of packages, to control or manage the payroll and billing and accounting data for example, then this would reduce the manual time spent on the pay and bill by the HR clerk or accountant. The act of making a mistake is instantaneous but the repercussions can be more lastly with the ordeal of having to deal with the payroll the pay and bill, credit control or finance and accounting can be effectively dealt with in a customised solution.
Despite going against the grain in the ideology of cutting back to streamline, but in essence the software’s save time and the less time spent on the payroll and billing then the more times to spend on bringing the money in. Outsourcing could be another sustainable solution for a company seeking to get more from their employees, as without the burden of having the complexities of the pay and bill, a staff member can concentrate his or her time on a specific business generating related task.
The benefits of outsourcing can vary depending upon specific circumstances of the individual business. However, the common reasons why businesses outsource their back office functions are to reduce costs, release internal resources, improve performance and most importantly improve the service delivery to clients, potential customers and current employees.
Outsourcing to an experienced outsourcing company will cut down your time spent on the mundane tasks and in all honesty, the pay and bill may be in better hands with a company with financial stability, the leading technology and can give the necessary support where required.
Whether you as a company opts to invest in computing payroll software’s or to outsource the hassle to specialist payroll outsourcing companies it is worth remembering that the overall company corporate objective is to maximise profit and that is achieved by further investment or outsourcing some of the company operations, then it should be done none the less.
Surviving the Recession with Payroll?
We are all aware of the current economic plight the U.K. is in at the moment, with some industries suffering more than others. Even though some companies are equipped with clientele that are recession proof, it is not to say that those clients aren’t in business with those being hit hardest. With that in mind, it is important to prepare the business for a leaner period. Saying this, it does not necessarily mean job losses or cutting down wages, but it can be an opportunity to invest in the latest technologies and really drive the company towards a competitive advantage.
The Penalties of Poor Pay and Bill
Complications arise every day in the workplace, whether it through software malfunction or through the mistake of an employee. Out of date software or unqualified personnel could be the reasoning for complications arising and this emphasises the need to invest in employee training and development and in the right software for the company.
Pay and Bill can prove Costly
Pay and Bill is not exactly the number one priority of a manager yet it is an important process of management. Investing in pay and bill software or even outsourcing the pay and bill could prove to be a strategic move, as even though both have immediate financial implications, in the long run it may enhance efficiency and productivity of a company.
