There are a number of good reasons to consider outsourcing your payroll accounting functions. While you may want to retain some of your general accounting operations such as accounts payable and managing your receivables, payroll is a great candidate for outsourcing.
How Your Business Can Benefit By Outsourcing Your Payroll Accounting Tasks
HR managers are becoming increasingly overwhelmed with added responsibilities, growing regulatory obligations, and a continually changing HR landscape. Managing the complex interactions between departments and the relentless demands of federal, state and local agencies can take its toll.
So being able to safely and cost-effectively delegate one of the more onerous processes to an outside vendor can be a smart move on a number of levels.
Three Benefits From Outsourcing Payroll Accounting
A comprehensive list would mention such things as enhanced security and improved compliance. No doubt this can be a much longer list, but regardless of who asks the question, these three advantages are always cited as the major benefits:
1. Cost Savings - While you should always conduct and in-depth cost analysis, most every business - large and small - can realize significant savings in real dollars by outsourcing this function. In addition to the overhead costs reduction, your company can save on software costs, training and support costs, as well as compliance related expenditures. All this by simply outsourcing payroll accounting to a reliable, professional outside firm.
2. Time Savings - This can be seen as another facet of cost savings. Every business owner and every manager knows that the old maxim, "Time is money" is most definitely true. According to one survey, the average time spent processing payroll for approximately 50 people was about 18% each month. That's equivalent to having one full-time person process payroll for 250 employees. This doesn’t include processing changes in payroll, administrating benefits, or any other tasks associated with payroll accounting.
3. Management Savings - That may seem like an odd way of putting it, but saving your management team the tedious work of ongoing payroll functions can improve their overall productivity. Outsourcing payroll essentially adds a substantial number of hours for HR staff to engage in other tasks with more long term benefits to the company. Removing the burden of payroll processing and reporting functions also helps to ensure greater accuracy, security and compliance.
Knowing When It's Time To Outsource
Outsourcing any function in your business should be a strategic and operational decision, one that is based on more than simply hoping to save money. And while saving money is indeed a major incentive, there are other indicators to consider when contemplating handing your payroll processing to an outside firm:
- You are adding employees
- Your payroll process exceeds your software's capabilities
- You are adding payroll staff
- Your employees want to have direct deposit options
- Your staff is struggling to maintain compliance and accuracy
At a certain point it becomes increasingly apparent that delegating your payroll accounting process to a vendor such as Accuchex is the better move strategically.
Considering Your Outsourcing Option
In addition to the time and dollar savings, having the peace of mind of knowing that your payroll processes are being handled competently, accurately, and on time is a great reason to consider outsourcing.
On top of that, you can be assured that the accountability and liability for compliance rests with your vendor, freeing you from the constant pressure of staying fully informed and compliant with the ever changing - and growing - rules, regulations, and legislation.
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.
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 your payroll management, get your Free Download: Payroll Outsourcing Guide to help you make an informed decision or call Accuchex Payroll Management Services at 877-422-2824.