Split payroll from financial funding
Payroll
can be supplied either :- in-house, by yourselves, or
outsourced, to local accountants or specialist payroll bureau's.
Funding can be supplied either :- in-house, by yourselves, or
outsourced, to factorers or invoice discount's (factorers include credit control;
invoice discounts don't)
Advantages -
if you already have payroll staff/systems, then you can retain them.
Costs appear to be less (as the hidden (opportunity) costs are usually
overlooked)
Disadvantages
-
(most) payroll bureau's will only do the calculations for you.
payment of wages/PAYE/NI still requires organising from your bank account
(with extra bank charges)
payroll administration, tax queries, year end reporting, Inland Revenue
liaison needs organising
splitting payroll from invoicing of a time sheet inevitably leads
to errors
factorers charge you on the debts outstanding - they have no incentive to
be good at credit control and debt collection
you cannot afford bad debts - you will have to pay extra for bad debt
protection
invoice discounter's charge you on the debts outstanding - credit control
is left to you
factorers & invoice discount's "disguise" the true cost by
charging you admin. fees on the VAT component of your invoices
you will have to deal with multiple organisations - no "one stop
shop"
