Running a small business in South Africa involves juggling many responsibilities at the same
time. From managing finances to ensuring your books are up to date and in order, the demands
can be overwhelming.
One critical area that often gets overlooked is payroll management. While it might seem cost-
effective to handle payroll in-house, partnering with a professional payroll company can offer
huge benefits, ultimately saving time, reducing costs, and ensuring compliance.
In this blog post, we’ll delve into the benefits of having a formal payroll system managed by
experts. We’ll explore the costs involved and how this investment can lead to significant returns
for your small business.
By the end, you’ll understand why professional payroll management is not a luxury but a
necessity for growing your business in South Africa.
What is Payroll Management?

Payroll management is more than transferring money to employees’ bank accounts.
It involves:
● Calculating Gross Wages: Determining the correct pay for each employee based on
hours worked, overtime, bonuses, and commissions.
● Deductions: Withholding the right amounts for taxes, social security, unemployment
insurance, and other benefits.
● Compliance: Ensuring adherence to South African labour laws, tax regulations, and
reporting requirements.
● Record-Keeping: Maintaining detailed records for audits and employee inquiries.
South Africa’s payroll process involves the calculation of an employee’s monthly salary. For this,
employers must consider the employee’s contract, working hours, overtime, and deductions.
Payroll in South Africa (Net Pay) = Gross Pay – Gross Deduction
Advantages of Payroll Management

Verbeek Consulting uses either Pastel or Sage Business Cloud Payroll Professional to integrate
your payroll management into your accounting system. We find that this is the best way to manage payroll as it is an all-in-one solution for your business. Saving you time and money. We
are able to assist setting up your payroll every month, ensuring that the correct amounts are
going to the correct employers. You can integrate your payroll with the workforce payroll app on
Quickbooks or sage business cloud payroll professional. Allowing your employees to access all
of their payroll information quickly and easily.
Verbeek Consulting is able to set up the integration easily, however, you will have to pay for the
software based on the number of employees that you have. Payroll management comes with a lot of benefits as you will see below.
Payroll Management Saves Time
One of the most significant benefits of outsourcing payroll is the time it frees up for business
owners and HR departments.
Processing payroll manually is time-consuming and prone to human errors. By allowing
professionals to handle this task, business owners can focus on strategic activities that drive
growth, such as marketing, sales, and customer service.
You can now easily manage the following: Annual, ad hoc and performance bonuses, travel
allowance and reimbursable kilometers, commissions and overtime, leave and sick pay,
independent contractors and labour brokers, bursaries and other non-cash benefit, medical aid,
pension, provident & retirement funds, and many more.
Outsourcing Payroll Management is Affordable

While it might seem like an added expense, outsourcing payroll can actually save money.
When you do payroll internally, you have to pay for the salaries of your employees who are
handling the task.
You also have to pay for the software and equipment needed to process payroll. And you have
to factor in the cost of potential errors, which can result in costly penalties and fines from SARS
(South African Revenue Service).
Outsourcing your payroll services reduces these costs significantly. Instead of hiring an
employee and paying for your software and equipment you can pay a flat fee. This fee includes
integrating with your current accounting software like Quickbooks or Sage Accounting and other
payroll expenses. Including taxes and compliance fees.
Outsourcing ensures Compliance
Payroll compliance can be a complicated and a time-consuming process. With changing tax
laws and regulations, it can be challenging to stay up-to-date on compliance requirements.
Failing to comply with payroll regulations can result in costly penalties and fines.
Outsourcing your payroll ensures that you are always compliant with payroll regulations.
Verbeek Consulting has a team of experts dedicated to staying up-to-date on payroll
compliance. We also have advanced software systems in place to monitor compliance and
ensure that your payroll is always accurate and up-to-date.
Increased Security

Payroll processing involves sensitive information, including employee personal data and
financial records. A breach can lead to identity theft, financial losses, and reputational damage.
Verbeek Consulting specialises in using Quikcbooks and Sage Accounting where payroll and
accounting software allows you to instantly share data between payroll, HR, and
accounting—no manual entry, duplicate data or manual re-entry errors are not possible and
data is stored securely in the software.
Employees are paid correctly on time and errors are never made with the reliable software.
Payroll management is scalable
As your business grows, so does your payroll. Managing payroll for a handful of employees is
vastly different from handling payroll for dozens or hundreds.
Payroll software like Quickbooks and Sage offer scalable solutions that can grow with your
business, ensuring seamless transitions and continued compliance.
These software systems make it easy to add employees or change them if they have left.
Verbeek Consulting is able to assist with integrating your employees with your accounting
system.
Detailed Reporting

Accurate and detailed payroll reports are essential for financial planning and the future of your
small business.
Payroll software provide reports that offer insights into payroll expenses, tax obligations, and
employee compensation trends. These reports can aid in strategic decision-making and
financial decisions for the future.
Verbeek Consulting is able to assist you with generating reports about your employees and their
behaviour over the year, enabling you to have a true reflection of your employees’ trends.
Employee Self-Service Portals
Quickbooks and Sage includes employee self-service portals as we have stated above. This
allows employees to access their pay stubs, tax documents, and benefits information online.
These are the portals that our softwares offer: workforce payroll app on Quickbooks or Sage
business cloud payroll professional.
This self-service reduces the administrative burden on your HR staff and enhances employee
satisfaction by providing instant access to their financial information.
This is great for you because we can automate this process for you every month to ensure that
your employee is up to date on their payroll management information. Saving you time and
money.
Costs of Outsourcing you Payroll Management

The costs of outsourcing your payroll management can vary based on the size of your business
and how many employees you employ.
Generally, accounting software like Sage and Quickbooks charge for payroll services based on
how many employees you have. Verbeek Consulting will charge a fee to manage your software
and set up the automations for your business to run smoothly every month.
While it might seem like an additional expense, the value provided through time savings,
reduced risk of errors, and compliance assurance often outweighs the costs.
Choosing the Right Payroll Software for your Small Business

When selecting a payroll software, consider the following factors:
Reputation and Reviews
Look for software with strong reputations and positive reviews from other small businesses in
South Africa. Quickbooks and Sage are well renowned in South Africa and many small
businesses use them as their go-to accounting packages.
Range of Services
Ensure the software offers the services you need, such as tax filing, compliance support, and
employee self-service portals. Both Quickbooks and Sage business cloud payroll professional
offer these services and are able to automate these services for you. With the right consultant
like Verbeek Consulting, the headache of payroll will soon be of the past.
Scalability
Choose a provider that can grow with your business and handle increasing payroll complexities.
The more you grow with Quickbooks and Sage, the more you pay. But you gain huge value to
help automate services for you.
Security Measures
Verify the provider’s data security protocols to protect sensitive employee information. Both
Sage and Quickbooks follow strict protocols and have certificates that are a testament to their
dedication to safeguarding your data and maintaining the highest standards of information
security management.
Conclusion

In today’s fast-paced business environment, managing payroll efficiently and accurately is
crucial for the success of small business.
Outsourcing payroll management to a professional payroll service like Verbeek Consulting can
provide numerous benefits, including time savings, cost reductions, compliance assurance, and
enhanced security.
By leveraging the expertise of payroll professionals, South African small businesses can focus
on what they do best, growing their business.
Investing in professional payroll management is not just a smart financial decision; it’s a
strategic move that can lead to sustainable growth and success.
At Verbeek Consulting, we specialise in QuickBooks and Sage accounting systems, providing
comprehensive payroll solutions tailored to the unique needs of South African businesses.
Contact us today to learn how we can help streamline your payroll process and contribute to
your business’s success.