Which Payroll Management is best – In-House or Outsourcing?

Payroll Management is a crucial part of any business. Any business primary responsibility is to keep the payments clear to employees, vendors, and clients.

If the payments are due & outstanding, it affects the credibility of the business and negatively impacts cash flows & operations of the business. Thus, payroll management plays a vital role in ensuring the payments & dues are clear to ensure smooth cash flows & operations of the business.

A business can do payroll management in 2 ways – outsourcing or in-house.

In-House Payroll Management

In large-scale companies, the in-house human resources or finance department team does payroll management.

Dedicating the payroll management internally to a dedicated team eases the process as a single team is handling & keeping records of the payroll of employees.

The In-House team uses an online system to keep track of leaves, holidays, and the number of working days to calculate the payroll of the employees.

Advantages of In-House Payroll Management

1. Complete Authority & Security

You will have complete control over the payroll process through which you can ensure the safety & security of sensitive information of your employees.

2. Effectiveness

In-House Payroll Management means one team will solely take care of the employees’ payroll management by effectively managing their salaries, salary slips, leaves, bonuses, PF Deductions, and more tasks in an accurate and timely manner.

3. Cost-Saving

Having In-House Payroll Management will help your company save a substantial amount of money in the long run compared to outsourcing payroll.

Outsourcing Payroll will cost you a set-up cost fee and a monthly or annual contractual fee, depending on the plan you are opting for.

Hiring an employee who is a payroll specialist will help you save a considerable amount of money over time. The payroll specialist will work jointly with the HR & Finance Departments for maximum efficiency.

4. Flexibility

Having In-House Payroll Management allows you to make last-minute changes to employees’ payroll if there is any leave taken or absenteeism by an employee or if any incorrect charges are applied while calculating PF deductions. Also, it allows you to access the daily reports of employees’ payroll & keeps you updated with their information.

Disadvantages of In-House Payroll Management

1. Time consuming

In-House Payroll Management consumes much time as the team or the payroll specialist will be working only on one task of managing payroll, & it chews up much time and affects the company’s productivity.

2. Accuracy

The payroll specialist might need training from time to time with updated software tools for payroll management to avoid errors that can impact employees’ payroll. The training is cost & time consuming and will affect the business productivity.

3. Lack of knowledge

Due to time constraints, the in-house payroll team might not keep themselves updated with changing laws & in-depth knowledge about payroll management which can hamper the quality of payroll management.

Outsourcing Payroll Management

Outsourcing HR payroll services is trending nowadays as businesses feel peace of mind as the payroll is managed time-to-time and ensures a smooth payout flow every month.

For small-scale businesses, it is very challenging to stay on top of annual tax laws and compliances. Hence, it is the best option to outsource payroll management.

If you are a new business and short on resources, outsourcing payroll management is your most effective option.

Small-scale & Large-scale businesses need to become more familiar with the advantages of why they should consider payroll outsourcing over In-House. Let us walk through the advantages of outsourcing payroll services.

Advantages of Outsourcing Payroll Services

1. Time-Saving

Outsourcing payroll services saves a lot of time as the payroll consultancy has a dedicated team who works on the payroll of a large number of employees effectively and gives you time-to-time accurate reports.

2. No conflict of interest

Outsourcing payroll services avoids conflict of interest where the In-House Payroll team might tweak employee salary figures due to conflict of interest by reducing or increasing the salary amount which can hamper the company’s reputation.

3. Accuracy in payroll

At Bestar services, we have a team of qualified professionals who have in-depth knowledge & updated information regarding payroll management and skilled experts on high-level payroll software tool which ensures the accuracy of the payroll of employees.

4. Accessibility

Through Bestar services, you can outsource your payroll services to us from any part of the world and you can access the information of payroll of employees by contacting us at your ease. By outsourcing payroll services to Bestar, you can access accurate updated information regarding salary slips, PF deductions, or any other information.

5. Able to work on other tasks

By outsourcing payroll services, your team can work on multiple tasks within the organization, boosting business productivity. You don’t have to worry about preparing timely or last-minute reports of employees’ payroll as Bestar Outsourcing payroll experts will handle all the payroll management tasks and provide you with timely reports.


With Bestar services, you don’t have to worry about the security & safety of employees’ information as we follow strict guidelines for keeping our clients’ information safe & secure.

With Bestar services, you can enjoy peace of mind by outsourcing payroll services to us, and our team of payroll experts will take care of the payroll management and provide precise and accurate timely reports.

Although Bestar is located in Singapore, we offer you an incredible advantage to outsource your payroll services from any part of the world.

Bestar is the best Outsourcing Payroll Services provider in Singapore and Asia-Pacific.

Contact us today to outsource your payroll services and other business services. You can reach out to us via call at +65 62994730 or email at [email protected].

Refer to our article on the benefits of HR & Payroll Outsourcing in Singapore

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