Businesses of all sizes carry out payroll processing without understanding the true costs involved. Keeping payroll "in-house" may not be a cost-saving decision in reality.
When businesses consider outsourcing payroll one of the first questions asked is typically, "What's it going to cost us?"
The truth is that, while it will incur a cost to move your payroll processing to a service provider, outsourcing can actually be a very cost-effective option in that it can free up valuable time and resources within your organization. And the costs are typically far outweighed by the gains in productivity, accuracy and security.
In fact, outsourcing your payroll functions should be viewed as an investment, not an expense.
Outsourcing Payroll Management as a Business Practice
From a strategic perspective, there are many good reasons to outsource your payroll to a professional payroll management services company. And, while you may choose to keep some of your general accounting operations such as accounts payable and managing your receivables, the payroll process is a good function to outsource.
While it may seem counter-intuitive to pay someone to manage your payroll, that's not usually the case, in fact. Not only can it be less cost-effective to keep all of your payroll functions in-house, the truth is that many companies find the cost-savings of outsourcing to be substantial.
Your HR and payroll managers or directors are increasingly overwhelmed with added responsibilities, growing regulatory obligations in the midst of a continually changing payroll landscape. And because the requirements are so burdensome, simply juggling the interactions between departments and the regulatory demands of federal, state and local agencies can overwhelm your business.
On the other hand, by outsourcing some or all of these functions, you can safely and cost-effectively delegate these burdensome processes to a reliable vendor. This can be a strategic investment on a number of levels.
Payroll Processing Costs and Trends
The overall trend among businesses, especially SMEs and larger organizations, has been towards more and more outsourcing. This is especially true for payroll process functions.
Our infographic illustrates some of the more pertinent facts and trends among businesses when it comes to payroll practices:
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There Are Tangible Benefits With a Payroll Service
If your company has been around for while, it's quite likely that you're already thinking about the need for a payroll management company. And, while you may have considered outsourcing before, perhaps you never pursued it as an affordable option.
Knowing how to get started or where to look can be a challenge. More importantly, however, you may be wondering if the cost will be warranted by the results?
Outsourcing to a reliable payroll management company means you have peace of mind knowing that your payroll processes are being managed competently, accurately, and on time.
In addition, the accountability and liability for compliance rests with your service provider. This will free you from the ongoing pressure of having to stay informed and being compliant with changing regulations. And because these are benefits that you can assign actual dollar amounts to, you are able to calculate the ROI of your investment.
Making a major administrative change in any business system can be challenging and, in the case of outsourcing, will involve an investment. But when it comes to hiring a managed payroll service, the end result will be a payroll process that runs smoothly, accurately, and with someone else doing all the work.
A post from the CPA firm Clayton & McKervey states:
“… a company had one person performing all of the payroll processing functions... They chose to outsource the functions to reduce the risk of the payroll not being processed, to manage growth by anticipating the increased payroll responsibilities that will be required as the firm grows and hires more employees...”
A great way to keep your HR staff happy and the IRS away from your door is to outsource your payroll management system. And, by outsourcing it, you can invest the time saved in growing your business instead of handling labor-intensive and costly payroll management functions.
Finding a Reliable Payroll Management Service
As a business owner or payroll manager you do have many options for your payroll functions. Software that can be installed in-house or cloud-based programs offer good alternatives, for example.
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.
Reliability, full-service options, and reputation are the hallmarks of a quality payroll management service provider. If you are currently looking to invest in outsourcing you get your Free Download: Payroll Outsourcing Guide to help you make an informed decision or call Accuchex Payroll Management Services at 877-422-2824.