Payroll is a crucial function to keep your business operating smoothly. However, it can be a time-consuming task. This is why many organisations, especially SMEs (Small & Medium-sized Enterprises), hand this vital task to someone outside the company due to the plenty of benefits for doing so. Let’s go into the details of the plus and minus points of payroll outsourcing for SMEs in Vietnam.
The Advantages of Payroll Outsourcing
To know whether outsourcing payroll is a good fit for your company, consider the following plus points of payroll services for SMEs in Vietnam:
1. You Save Costs
Handling your payroll in-house may sound tempting at first because most employers think that it’s cheaper to do so.
However, there are often hidden costs associated with in-house payroll management including employee recruitment, training, monthly salary, and overhead, just to name a few. It will be more cost-effective to outsource your payroll to a professional.
2. You can Manage Your Time Better
While the payroll expert handles your payroll tasks, you and your team will have extra time to focus on business activities that matter such as marketing and business development.
3. You Get Professional Consulting
The outsourced payroll team is made up of fully experienced experts to offer you the most effective payroll advice and solutions.
4. You Adapt More Quickly
As an SME in Vietnam, payroll outsourcing allows you to adapt to the dynamic market much faster just like any other large company. You can deal with payroll and employee changes easier.
5. You Fulfill Tax Obligations on Time
The payroll specialists can prepare and submit accurate reports to the authorities, fully in compliance with the local tax laws.
The Disadvantages of Hiring out Your Payroll Needs
1. You May Lose a Bit of Control
You may not be able to control your payroll management directly since the payroll provider serves as a third-party consultant. However this is the reality of all Business Process Outsourcing (BPO), therefore it all comes down the the integrity and reputation of the BPO provider.
2. It May Not be Suitable for a Tight Budget
Expenses incurred for payroll outsourcing, even though the cost is much less compared to having an in-house team. Therefore, if your SME in Vietnam has a very tight budget, payroll outsourcing may not be an option for you.
3. No Internal Payroll Management Skills
If you over-rely on a payroll outsourcing provider, you may have to learn the knowledge and skills from the very beginning when you need to set up a payroll department for your company as your business grows.
In the end, it would be best to hand your company’s payroll function off to an external professional, especially for SMEs in Vietnam. At this scale, you will have the resources of the whole professional payroll firm committed to your payroll tasks and requirements. You will then have a good safety net to protect your business from failed deliveries, giving you more time to lead your company to success.
How to Choose a Payroll Outsourcing Provider for Small & Medium-sized Enterprises in Vietnam
A good payroll outsourcing provider can meet your unique business needs and reduce the workload required with a streamlined process.
Here are the things to consider when you are ready to make the switch and choose a payroll service provider.
- Make sure that the payroll provider keeps up with the latest technological updates that fit your business requirements
- Seek a payroll outsourcing professional who provides you with efficient and streamlined customer service and support
- The payroll provider shall ensure that your business data and employee information are highly secure and protected
- Find out if your provider can do anything else besides payroll to increase your company’s productivity and performance
- Carry out due diligence that they will be responsible for any tax reporting mistakes
Payroll Outsourcing for SMEs in Vietnam with Cekindo
Cekindo provides a completed outsourced payroll service for listed and unlisted large entities, as well as SMEs in Vietnam.
Our professional team combines decades of payroll expertise and knowledge with an outstanding track record, using the most advanced payroll outsourcing system that is tailored to fulfill your unique business needs.
Over the years, we have seen many of our clients thrive as a result of the extra time and resources they gain by choosing our services.
For a more comprehensive guide to choosing between outsourced or in-house payroll management, refer to our more updated blog.
If you have any questions regarding our payroll services for big corporates or SMEs in Vietnam, please do not hesitate to ask by filling in the form below. A representative of our team will get back to you soon.