When you first started your business, handling your own payroll management was a simple task. You kept a ledger, paid yourself and maybe just a few employees. The payroll process did not eat up your valuable time so you could spend that time growing your business. Of course that time growing your business paid off and not sales increased, but the staff also increased to meet the demands of your growing business. Now that the simple payroll management process has ballooned and along with that, your time spending on it has also increased.
The Law of Diminishing Returns
As the heading implies, there comes a point where the benefits of handling your own payroll start to diminish. "The Law of Diminishing Returns" states, "there is a level where profits and benefits gained is less than the amount of money or energy invested." There comes a point where you can spread you and your support personnel too thin and your business growth starts to plateau. Of course, you can hire more people to handle your payroll, but in this day in age of employee turnover, investing in training, and added expenses of hiring an employee that you are not sure is a fit for your company, this may not be the best use of your money and resources.
Increase Your Return by Outsourcing Payroll Management
Once you reach a certain volume of employees, spending your time on the complexities of payroll management is no longer worthwhile. In fact, you put your company at risk if you are not up to date on employment law. Most business owners do not have the time to go to classes and stay abreast of ever changing laws when it comes to employee payroll. As your company grows, you do not give it a second thought when it comes to investing in equipment or technology to better manage the business. Therefore it only makes sense to use your time to grow your business while using the expertise of payroll professionals to manage your payroll.
When considering a payroll management company, make sure you find a company that becomes a partner in your success. For a complimentary consultation to discuss the pros and cons of payroll outsourcing, please contact Accuchex at (415) 883-7733.