OUTSOURCING OF FINANCIAL ACCOUNTING FUNTION AND PAYROLL AND HR MANAGEMENT FUNTIONS
Why should you favor outsourcing vis a vis procurement
• For The accounting function You will not be required to procure the software. Again you will not need to employ an accountant (and possibly more than one) to process the documents for your organization, and no need to employ a Chief accountant to supervise the quality and timeliness of your financial statements. You will also have done away with (or reduced tremendously) the forgery risk by your employees due to perfect separation of cash flows from accounting duties. Tax consultancy is automatically covered under this service. Your MIS reports will be tremendously improved for your projects profitability/cost over-run control, Debtors and Creditors age analysis will be provided for your follow-up.
• For Payroll and HR management system You will avoid initial costs and an annual maintenance fee of 18% of the initial cost. All of the above will be met by TMCL while assuring you of quality service. You may not have to worry about any IT costs related to acquisition and maintenance of computer hardware and software to host the above systems.
• It is also possible for the HR and payroll system to be ‘Cloud hosted” in such a way that your staff will be trained to access HR and payroll reports directly from your offices while we shall perform the processing of payrolls and handle all the statutory returns on your behalf.
• Overall the cost is comparatively far less than employing a high-level accountant plus an assistant to handle the above duties. The hidden costs apart from the obvious ones (salaries) include, possible demand for transport, Medical, NSSF contribution, SDL., office space and related office costs etc.
• The risk of staff turnover and related system frustration is also avoided.