Let’s be honest: business owners never have enough time, right? From managing people to crafting new ideas to solving company problems, you always have infinite tasks on your plate. A business owner is always wearing multiple hats and keeping multiple plates spinning, even though outsourcing and delegation when possible are keys to long-term success.
But, are you managing your company’s payroll? If so, you are probably wasting tremendous time and energy to stay on top of the books. Focusing on bookkeeping and accounting can sap time and energy from working on the core competencies of your company.
Let’s get into the 5 top reasons for outsourcing your payroll to a service provider.
1. Save Time
No matter how employees you have (or don’t have), processing payroll takes time. There is data processing, double-checking for errors, and reading files and notes to consider.
This can add to several, working hours per week. And the time you spend on these tasks takes away from other, essential functions (like increasing your business revenue!).
Successful business owners know how to balance their time. They know when to take over a task themselves, and they know when to hand the keys over to another professional.
2. Improve Your Security Measures
In-house payroll can be inherently risky. You’re dealing with sensitive information like large amounts of money and social security numbers.
This can be a golden ticket for embezzlement, identity theft, and even the phenomenon of using a pay stub template for fake stubs!
Outsourcing your payroll provides an inherent layer of safety for your confidential data. They provide backup and multiple server locations. They also provide an up-to-date system for protecting your company and employees’ information.
3. Stay In Compliance
Are you savvy about all the intricate complications associated with the government tax code? Don’t worry- most business owners aren’t!
However, simple mistakes can lead to scary audits and expensive penalties. You don’t have the time and money for either of those issues.
Government rules change constantly. Professional payroll companies stay on top of these changes and adapt to them promptly. That is one less concern for you to worry about.
4. Enhance Flexibility
Although it may sound counterintuitive, when you outsource payroll, you tend to have more control over your payroll.
That is because most companies provide payroll 24/7 through online portals. You can make edits online, and employees can access their own W-2 forms and paystubs directly.
Furthermore, most companies offer free customer service support in case you have any questions.
5. Reduce Costs & Make Money
Even though outsourcing payroll may seem expensive, it can reduce in-house costs. For small or medium-sized businesses, you may be spending more money on in-house payroll employees.
You can do the math yourself.
Determine the labor costs associated with in-house payroll activities. This includes all time spent calculating, signing, distributing, and keeping up with tax law changes. It also consists of the wages and benefits you provide for those employees.
Compare that to how much you can spend using an all-in-one payroll service provider. You may be stunned at how much you end up saving!
Final Thoughts On The Top Reasons For Outsourcing Payroll
When it comes to operating your business, you often can’t put a price on peace of mind. That is one of the best reasons for outsourcing. You can focus on what you excel in- and your outsourced companies can focus on what they excel in!
Are you interested in learning more about smart business solutions in the new economy? Check out this article today!