Do you want to expand your business at a faster pace? Then start outsourcing your most ho-hum back-office jobs! Just like sales, content marketing and customer service, payroll is a core component of your organization. It’s not just a bimonthly boredom or accounting task but is also a means of retaining employees and compensating them for their hard work. While some small businesses may choose to manage wages in-house, there are several perks of outsourcing your payroll to a savvy and well-known provider. Check out some of them!
Slimming Down of Overheads
Being a business owner puts a monetary value on each second of your time. So much time is spent during the payday period by:
- Calculating staff hours, allowances, time off, sick leaves, taxes and deductions,
- Printing, signing and distributing employees’ payslips,
- Handling direct deposits and online payments,
- Generating salary statements,
- Compiling and issuing local, state and federal income tax.
But why over-complicating things when they can be simple? Remember, each time spent impacts the generated revenue of your enterprise and, therefore, should be spent wisely! (Every extra time saved is equivalent to money earned!)
If you consider the total time spent on salary management in each pay period compared to the costs of outsourcing, it is a plain as a pikestaff that you could potentially save a substantial chunk of dollars if you take these tasks off your shoulders. So, if you’re able to save some time by outsourcing a payroll provider, why not give it a try?
Government Compliance Coverage
Just because you are not an expert in the complex area of government tax regulations does not mean that you are not responsible for errors. You are still legally accountable for any misreporting or failure to report to federal and state agencies. It is also essential that you understand wage and hour laws and know exactly when you are required to pay overtime!
Even one mistake can expose you to costly audits and penalties. Since regulations change continuously, often several times a year, it is unlikely that you can keep up with all of these changes when you focus on managing and growing your business. Payroll management companies understand tax legislation and are responsible for keeping abreast of the rules, regulations, and changes in tax legislation.
In addition to being tremendously nerve-racking and back-breaking, correcting payroll errors can be worth a king’s ransom! And that is why it’s best to seek help from professionals. A competent payroll service provider is less likely to slip up than your in-house staff thanks to their expertise, knowledge, and finely-tuned checking procedures they have in place.
One of the main hurdles of in-house payroll processing companies is the time taken to complete a task as well as the inability to find adequate solutions. With each pay period comes a string of checks and balances to avoid errors. As your staff expands, this process gets more challenging and draggier. Thankfully, by outsourcing your payroll, time is instantly freed up.
And hence, you can use this free time to fine-tune your sales and marketing strategies and streamline your workflow (and yes, the tip of the day: Stop all lousy business habits such as poor time-management!).
Data Security 100% Guaranteed.
Internal payroll involves a series of risks. Employee records can be accessed by those who manage the payment. And the worst part is the risk embezzlement – where employees could falsify records for personal reasons (not cool, huh!) Besides these swindling risks, considering your payroll software’s security is crucial!
Although the software itself may be relatively secure, your data may be hosted on an iffy server or network with security holes that could expose you to data theft. Comparatively, outsourcing your payroll implies that your information is stored on highly secure servers that use state-of-the-art encryption technology, as well as redundant data backups.
Doors Opened to Various Services
Even a highly-experienced accountant has a limited skill. Payroll outsourcing services generally offer an array of benefits. In addition to standard payroll and tax calculation, some platforms boast additional value-added services such as bookkeeping services, law compliance, access to health benefits, contractor services, contract generation and workers’ compensation payments. Simply identify which services are most relevant to your needs and hire a professional that provides a personalized scheme tailored to your specific needs. You can contact NEXGEN ACCOUNTANTS for all your payroll requirements. They make your company’s salary system effortless.
Professional payroll service providers usually employ payroll professionals with extensive knowledge of government compliance, taxation, complexities of regulations and human resources. By outsourcing your wages management, you can kiss goodbye to horrible headaches! Thanks to its countless benefits, you’ll be able to devote more time to the development of your business and also save some bucks!
So, do you prefer outsourcing your payroll or managing it internally? Share your thoughts in the comment section below!