Did you know that more than 85% of Canada's certified public accountants recommend that small businesses outsource their payroll?
When one considers all the advantages that outsourced payroll services can offer to a small business, this figure isn't surprising. Compared to internal payroll and bookkeeping, outsourced payroll is more time-efficient, cost-efficient, and more beneficial to your enterprise overall.
Still not sure if your company should look into outsourcing its payroll to a Canadian payroll service provider? Here's a more in-depth look at all the ways a payroll provider can benefit your small business.
Many small business owners know how to do business, but they aren't necessarily experts in payroll. When you outsource your payroll to an external agency, you and your employees' paycheques will be managed by people who make their living by being experts in the complexities of payroll. Because of this, you can be confident that your payroll and taxes will be processed accurately and without error every time.
Studies have shown that small businesses will spend approximately $2,600 in direct labour costs each year that are related to their payroll. That doesn't include the cost of paying the salary of a full-time, in-house payroll employee. By outsourcing your business's payroll, these costs will be slashed almost entirely, allowing your business to put more of its budget toward growing, rather than stagnating.
Another huge advantage that outsourced payroll services can offer is time savings. Attending to payroll internally requires a huge time commitment, as making errors can be disastrous. By allowing an outside agency to handle your payroll, you and all your small business's employees can devote more time to the core mission of your business, generating more revenue, and being more valuable members of the enterprise.
4. More than just payroll processing
Processing payroll for less time and money is obviously a major advantage of outsourcing your company's payroll—but many of today's outsourced payroll processing providers offer even more services that can benefit your company. One of these indispensable services is human resources support. Your payroll processing provider will be able to offer the guidance and expertise needed to handle any issues that arise with employees, allowing your in-house human resources department to devote more time to resolving non-payroll-related issues.