Reasons Why DIY Payroll Processing Isn’t Recommended

We’re often asked as to why businesses in the UAE choose to outsource to our experts for payroll processing in UAE, and we’ve answered that. Today, let’s take a deep dive on the most important reasons why DIY payroll processing isn’t recommended at all, most especially for growing businesses. Read on!  

Payroll processing is time-consuming  

Outsourcing accounting functions, most especially payroll accounting in UAE, will help a business save time. As you may already know, acquiring payroll data, processing them, and their maintenance can be a huge drain in time for company administration. Outsourcing payroll in UAE is used by businesses in addressing and resolving issues that are related to their core businesses. 

Managing an entire department for payroll requires lots of time, most especially in the UAE wherein the number of reports that have to be provided to the authorities is twice or even thrice as much compared to other countries across the globe. 

This time can be used a lot more effectively and efficiently by businesses by resolving important issues and devising development strategies for their respective companies. Most companies that are run efficiently become very successful as they focus on the core processes, which lets them be ahead of their competition. Also, they are able to increase their capacity for earning and sustain their growth.  

Hiring an inhouse payroll team is expensive  

Payroll outsourcing in Dubai and anywhere in UAE allows cost reduction, especially on a company’s operating expense. It is definitely a lot more affordable for a business to acquire the help of a payroll processing firm than try running an inhouse payroll processing department. Moreover, a specialized accounting firm in UAE that provides payroll processing service uses an automated work process, which means less staff members are required. This results in more money savings!  

Monitoring all regulatory changes can be difficult 

The experts of specialized payroll processing firms have experienced professionals that are able to apply effective and advanced methods in solving payroll issues and compliance problems of their clients. 

Throughout their work, experts gain extensive knowledge and skill in dealing with particularities in accounting for payroll in different industries, as well as the effectiveness of specific business methods. Most of us know that laws in the UAE change frequently. This greatly affects the processes of businesses. Employees of a payroll processing firm monitor the changes to regulations and they know all the measures that must be taken in order to adhere to all local policies.   

Importance of a Payroll Processing in UAE for Small Businesses

An inhouse team won’t be very flexible  

A payroll processing firm in the UAE allows company management in focusing on the expansion and growth of their business without being distracted with tasks like hiring, training, and recruiting specialists on finance. The amount of crucial work that is performed by a contracted payroll specialist can also be increased, as needed. 

But, during a period of low activity, a client can also decrease the work that is given to experts. What does this mean? It’s great news for a business as this means more savings from the reduced cost in processing payroll for your business. In the case of an in-house department for payroll processing, it can be a lot harder to reduce the count of employees as the UAE labor and employment laws impose a number of obligations that employers need to meet prior to being allowed in reducing staff.

Increased risk of fraud 

 Many international companies suffer massive losses because of asset misuse or fraud by chief accountants or CEOs. Payroll outsourcing which separates the responsibilities of company administration to a third party will protect the shareholders’ interest and avoid data misstatement apart from misuse of company finances. Payroll outsourcing in UAE, in particular, helps in increasing transparency within a business and confer management of local and international companies with independence from the actions of employees.  

Poor data security  

Outsourcing companies in the UAE employ experienced specialists that are able to provide the highest level of confidentiality on sensitive company information. Specialists are able to maintain remote and local servers, ensuring stability of connection, recovery plan development, and daily data backup – all of which are required in maintaining and processing company payroll.  


Inhouse employees often fall ill, go on vacations, may be dismissed unexpectedly, and even result to the functions of a business to get suspended. Such situations don’t arise with a payroll outsourcing firm in UAE that’s engaged with running your company payroll. This is because your company isn’t served by one accountant alone but by an entire team of payroll experts that work under the approach and principle of substitution and interchangeability. 

Payroll outsourcing in UAE 

Here in Payroll Middle East, we’d be very pleased to discuss with you how our payroll accounting service in UAE will be able to improve your business. Contact us today to book a consultation!