Outsourcing payroll VS buying software. What’s truly better?

Outsourcing payroll

Payroll is a necessary, yet very time-consuming task requiring a lot of attention and patience — especially if you are tapping a new market. There are several tools you can get your hands on to make payroll processing more efficient. The two major ones are purchasing specialized payroll software and reaching a third-party company for Outsourcing payroll altogether. As an audit, accounting, and payroll company in Lithuania with a lot of foreign clients we want to share our expertise on the matter with you. 

Outsourcing payroll

It is quite common for companies to outsource payroll in Lithuania. This means that you relieve your staff from doing this kind of accounting altogether and address a trustworthy outsider firm to take care of it. This approach is quite traditional, but it’s still widely used for a reason. In case you find them appealing, contact us — and we’ll tell you more.

Here are the reasons why outsourcing payroll in Lithuania might be a good idea:

  1. Cost-effectiveness. Outsourcing payroll might be more cost-effective than handling it in-house. The reason is simple — you don’t have to hire specialized staff and buy whatever hardware and software they might need. It is especially a good idea in case your company and its operations don’t require a full-time employee to take care of them.
  2. Expertise. Local payroll providers in Lithuania — as in any other market — keep up-to-date with the latest laws. This way there is much less of a possibility of breaking any regulations because of the human factor.
  3. Time-saving. It’s especially applicable if you have your payroll done by accountants. Outsourcing frees up the most precious resources — time and workforce.
  4. Scalability. Outsourcing payroll allows you to scale your payroll operations up or down as needed, without having to hire or lay off staff.
  5. Flexibility. Payroll service providers in Lithuania can often offer a range of services and options. In case your payroll needs include support for multiple pay frequencies or the ability to handle complex payroll scenarios then outsourcing is your choice. 

Payroll software

Payroll software is almost a must if you’re keeping all the accounting in-house. This kind of program is usually purchased through a subscription model and used by your employees as a database and a digital accounting tool. In case you decide to supply your business with a reliable and easy-to-use payroll tech, we recommend checking out one of our designs. You can read more about it here. 

Here are the reasons why you might want to purchase a subscription to the payroll software:

  1. Cost-effectiveness. Payroll software has its advantage in terms of price as well. If your company is large, using the software, in the long run, might be more cost-effective than outsourcing.
  2. Control. If the software is flexible enough, it can be adjusted to your business needs — and you will have much more control over the payroll accounting. When developing our program, we took extra steps to make it adaptable.
  3. Security. Payroll software can offer robust security features to protect sensitive employee and financial information.
  4. Integration. Good payroll software can integrate with other systems and tools like accounting software. This can make it easier to manage payroll and other business processes. That’s why we offer both tools in our program.
  5. Expertise. In case your business has complex payroll needs, it might be a good idea to have someone constantly available in-house. Sophisticated software will provide such payroll accountants with all the tools they might need. 


When choosing the payroll enhancement for your business it’s always important to keep in mind the following:

  • Long-term planning
  • Availability of accounting staff familiar with local regulations (i.e. Labor Code) of the place you choose for your operations
  • The scale of your company’s o perations and amount of employees

And remember: if you need either payroll software or a payroll service provider in Lithuania, we’ve got you covered. Feel free to contact us