If you are like most small business owners today, you wear multiple hats in order to manage many aspects of your company.
Often you will see the head of a company handling sales, marketing, operations, bookkeeping and payroll management. The reasons for this are plenty; I cannot justify, financially, adding another worker, I like to have control over the process of all aspects of the business. Regardless, of the reasons, spreading yourself too thin could have disastrous effects on your business, especially when it comes to handling payroll.
The Benefits of a Payroll Service Outweighs the Cost
Rhonda Abrams, author of Hire Your First Employee says, "One of my rules is, if you have even one employee, get a payroll service. The penalties for screwing up are so much more expensive than the cost for the payroll." The key to keeping happy employees and the IRS off your back is implementing an effective payroll management system. In addition, you can spend your time growing your business as opposed to handling the payroll management function yourself.
You need to step back and assess all the benefits there are to outsourcing your payroll management service. Here is just a few of them:
- Free up Time
- Reduce Costs: According to Surepayroll.com, "A small business with 10 employees will typically spend $2600 in direct labor costs associated with payroll.
- Avoid IRS Penalties
- Alleviate the pain and headache of manual payroll
- Offer Direct Deposit: Offering direct payroll can be difficult for a small business if they do not use an outside payroll management company.
- Save the cost of upgrading payroll software
- Do not have to stay abreast of all the employment (payroll) laws: Let the experts worry about this.
- Avoid the knowledge leaving: If the employee who handles payroll quit you may lose many hours of valuable sleep trying to do this yourself.
This list should be reason enough to start searching for a payroll management service to free up your time and alleviate your worries.
Selecting Your Payroll Professional
If you are a business with at least 10 employees, you may want to think twice about who you select to handle your payroll, One question to consider: Will a bigger payroll management company be better than a smaller payroll provider? An important factor to consider is your point of contact. Bigger payroll companies usually have multiple points of contacts. Account representatives may not be able to answer your questions as your account is spread between different representatives And, because of higher staff turnover, your point of contact may frequently change making it difficult to build a relationship with your payroll provider.
As a small business yourself, it may be better to work with a payroll provider that focuses on a high level of service for their clients. More often or not, you will work with one person as your point of contact. Something you probably can appreciate since you pride yourself on connecting other people in a friendlier environment.
Additionally, larger companies are known to use different payroll systems as well as very complex payroll software that may far exceed the need of your business. Explore payroll management companies who have build a reputation for accurate, secure and convenient applications. They also tend to be more accurate and simpler to use.
If you have not consider using a payroll management service in the past, it might be a great time to step back from you daily grind and reassess. Outsourcing your payroll may just give you back the time you need to grow your business. For a free consultation please contact us now at (415) 883-7733.