If you are like most small business owners today, you wear multiple hats in order to manage many aspects of your company. This often includes payroll management.
Often you will see the head of a company handling sales, marketing, operations, bookkeeping and payroll management. The reasons you have for this are numerous:
"I cannot justify, financially, adding another worker." or "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.
Benefits Outweigh the Costs of a Payroll Service
If your company has been growing for a while, odds are you are probably already thinking about the need for payroll management companies.
However, knowing how to get started or where to turn can be challenging. It may seem that integrating a new payroll management approach into the overall business plan of your company is a major task.
Or you may be wondering if the cost will be warranted by the results? Making a change in any business system can be challenging and, in the case of outsourcing, involve an investment.
But the end result will be a payroll system that runs smoothly, accurately, and without you doing all the work.
Outsourcing as a Fiscal Business Strategy
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 that come from outsourcing your payroll management process. Here are just a few of them:
Free Up Time
The time you save by handing off the bulk of you payroll management functions is also time that can be re-invested in more productive activities. In other words, it's a dual benefit.
According to one study, a small business with 10 employees will typically spend $2600 in direct labor costs associated with payroll. Any savings in a company's overhead costs are dollars that go directly to the bottom line.
Avoid IRS Penalties
Every business owner knows that fines and penalties are both costly, time consuming and debilitate productivity. In addition, staying off the "radar" of the IRS is beneficial in the long haul.
Alleviate Headache of Manual Payroll
Outsourcing payroll makes life better for your payroll staff by eliminating the need for managers to scramble to gather the information needed to calculate payroll every pay period.
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
Payroll software has a tendency to become chronically outdated, And. as your company grows, the software you had may not be sufficient for the present demands. Upgrading can be costly and time-consuming.
Avoid Keeping Up on Employment Laws
Spending your time on the complexities of payroll management is no longer feasible once your business grows beyand a certain size. Most business owners don't have the time to stay abreast of ever changing laws when it comes to employee payroll.
Avoid Losing the Payroll Process Knowledge
If the employee who handles payroll quit you either have to do this yourself or scramble to find suitable replacements.
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 Outsourced Payroll Professionals
While using an in-house payroll software to manage your payroll operations can be a good option, often having these processes handled by a third party company can be more advantageous.
With the plethora of rules and regulations that go far beyond simply understanding how to handle direct deposit, for example, it makes sense to delegate those responsibilities to a professional company that specializes in payroll, HR, and insurance functions.
Accuchex is such a company. In addition to the time and money savings that can be had by outsourcing, you will also have the security and peace of mind that comes with knowing that your payroll is being managed accurately and expertly.
As a business owner or payroll manager you have a number of options for your payroll functions. Software that can be installed in-house, or cloud-based programs offer a good alternative. But if you really want to take full advantage of the benefits available to you, outsourcing to a provider like Accuchex can still be the best decision.