Owners of small businesses have it tough. They have to wear many hats, often managing the majority of their departments on their own or with little help. They often struggle just to stay afloat and avoid bankruptcy.
To do so, they’re always looking for new ways to streamline their operations and keep their costs as low as possible in order to have more cash flow. Though they often have their small businesses’ best interests at heart, many owners make a fatal error: they try to handle everything in-house.
They believe that outsourcing is just another monthly expense that can be avoided—that taking on all business functions, like payroll, on their own is more cost efficient. Unfortunately, this can lead to errors, inefficiencies, wasted time, and higher risks. A time-strapped, distracted, and inexperienced business owner or employee should not be taking on such a big responsibility.
For many small businesses, payroll services are a better option to in-house processing. Outsourcing the responsibility comes with three particularly big advantages.
1. Reduced Costs
This one might be a shocker but small businesses can actually reduce their costs by using payroll services! You shouldn’t think of outsourcing as an extra expense, you should think of it as a way of cutting costs in many areas of your business.
Firstly, because experts will be handling the processing of your payroll, you’ll increase accuracy, which means you won’t accidentally overpay your workers due to inaccurate time records or calculations.
Secondly, you’ll significantly reduce your risk of non-compliance with payroll regulations, so you won’t be forced to pay hefty fines because of innocent errors being made.
Third, you will only have to pay one monthly fee to your payroll provider, which will be lower than the cost of hiring a clerk to help and paying a salary and benefits, paying for software, equipment, supplies, maintenance, repairs, and training. Your payroll provider will have everything you need to process payroll, so you don’t have to invest in any expensive technology or other necessities like you would if you handled the responsibility in house.
2. Save Time
Owners of small businesses are often strapped for time. They often spend 12 hours or more every day working in the office, plus weekends and holidays. And many of these hours are spent on payroll processing every pay period. It can be incredibly time consuming to track hours of work, research tax legislation and payroll regulations, make the appropriate calculations and double check your work, and fill out all of the required paperwork. This is time spent away from your core business, your friends, and your family.
Payroll services will allow you to have more time in your day for the things that matter. You won’t be as overworked and you won’t be so distracted. You’ll be able to focus on your core business or spend more time outside of the office. Sounds nice, doesn’t it?
3. Gain Access to Payroll Expertise
When you invest in outsourced payroll services, you get to gain access to much-needed expertise. Your payroll needs won’t be handled by just anyone—they’ll be taken care of by experienced and skilled professionals who understand the ins and outs of payroll processing and administration. You won’t have to worry about making costly errors that damage your reputation and upset your employees; you won’t have to remember to keep up to date with remittance deadlines; and you won’t have to worry about being non-compliant with any of the hundreds of payroll and tax regulations you’re expected to know, understand, and adhere to.
Your team of experts will be by your side, handling the paperwork, compliance issues, and calculations. And they will be there to provide guidance, recommendations, and advice whenever you need it.
Investing in payroll services is worth it for small businesses. As a small business owner, you’ll save time and money and gain access to payroll and tax expertise.