Why Outsource Payroll

Why Payroll is One of the First Things You Should Outsource

The quality of your staff is the foundation of a successful business. If you have skilled employees and contractors, then you can rest assured to know that things will get done and the business will keep moving forward. On the other hand, unmotivated employees can quickly bring down a company because of the poor customer service that is reflected.

As an employer, you need to be sure that you are proactively working to improve company culture. Happy employees will treat your customers right, helping you to increase sales and productivity. Payroll is an important aspect of employee satisfaction because your team needs to know that they will receive a correct paycheck in a timely manner. When payroll problems happen, it starts a domino effect that negatively impacts attitude and culture in your business.

Mistakes of Do-It-Yourself Payroll

If you are just getting started with your small business, then it makes sense that you are carrying many responsibilities. It is common for small business owners to carry the bulk of the responsibility, instead of handing some of these things off to employees and contractors. Not only are you looking for ways to cut overhead costs, but you also want to maintain control over the business.

Even though it might seem like a simple solution to handle the payroll by yourself, be aware that you could be causing potential problems for your company. Too often, small business owners don’t have the experience or knowledge to manage the business financial details. As a result, things slip through the cracks and mistakes are made.

Compare the costs of hiring a payroll service to help with your company, and you will see that it is cheaper to pay for this monthly service instead of dealing with the aftermath of a failing business because of payroll mistakes. These mistakes could cost thousands of dollars in employee turnover, back taxes, IRS fines, and more.

Is Payroll Software a Good Idea?

Using a reputable software program is a great place to start, but the software won’t overcome the human mistakes. The computer is only as good as the information that is entered into the software. So, you need to be sure that you are using accurate information when setting up the payroll details for your employees.

Depending on the software without using regular checks and balances could cause a domino effect of problems in the future. So, it is important that you have an experienced accounting and bookkeeping team in place to stay ahead of the details. The combination of the right software program and a knowledgeable team will set your company up for success.

Accounting Employee or Outsourced Payroll Services?

Now that you see the importance of hiring an experienced financial professional to help with payroll, the next step is to compare the options of an in-house employee or an outsourced payroll service. When you look at the numbers, it is easy to see why many small business owners turn to outsourced services to solve this problem.

If you hire an employee to manage payroll, you will need to pay their salary with extra costs on top for benefits. These benefits can cost thousands of dollars per year for health insurance, life insurance, paid time off, and more. Plus, you have the employee taxes and worker’s compensation fees calculated based on the amount that is paid to each employee.

Not only do you need to cover these taxes and benefits for an employee, but you also need to carry the cost burden of paying for office space to accommodate that employee. Other expenses might include office furniture, computer equipment, and office supplies that are needed so that they can do their job.

There is no doubt that it can be expensive to hire an employee. So, many small business owners are looking at options to bring on contractors for support instead. These outsourced payroll services offer all of the expertise that you need, without the burden of having an employee in your office. You get the best of both worlds: you can save money and have reliable, accurate payroll processing at the same time.

Benefits of Outsourcing Your Payroll Processing

Are you considering the option to outsource your payroll? Here are a few benefits that you can expect if you choose to invest in this service:

  • Save Time: There is no reason for you to spend your limited time on payroll processing. As a business owner, your time is better spent on employee management and company growth. Let someone else handle the busy work for payroll processing. Outsourcing these tasks will free up your time so that you can focus on more important responsibilities for the company.
  • Boost Productivity: How often do you feel like your day is taken up with busy work and seemingly mundane tasks? As the owner of the company, it can be hard to maintain productivity if you are constantly interrupted throughout the day. Plus, your productivity will go down if you are wasting your time on busy work. Outsource this busy work so that you can improve your productivity each day and maximize your results.
  • Decrease Expenses: As mentioned above, there are many costs associated with bringing another employee into your company. By working with a payroll provider, you can reduce the direct costs of payroll processing. Even if you have a large company that can support the salary of an in-house accountant, you still might consider the benefits of outsourced payroll services to minimize costs.
  • Avoid IRS Penalties: If tax filings and paperwork are turned in late, then the IRS will charge expensive fees and interest costs. Your risk of these fees will go up if you are handling the payroll without the support of an experienced accounting team. Small business owners often make mistakes, which can result in costly problems in the future.
  • Financial Security: Is your bank account and employee information secure in your office? Payroll processing can be risky if you aren’t using the right security features to protect the information. There are many security threats that you can run into in the digital age in which we live. So, it is a good idea to hire a company who will go above and beyond to protect your financial security.
  • Keep Employees Happy: One of the fastest ways to make an employee upset is by making a mistake on their paycheck. Reliable, accurate paychecks are the foundation of employee satisfaction. So, you need to make sure that you have a payroll team that will ensure accuracy for every pay period.
  • Expert Financial Advice: Hire the right payroll processing team, and you will have expert financial advice throughout the year. These accounting services can be much more than just writing the paychecks! The right accounting service will offer services for tax filing and management, as well as all other types of business financial support that you need. Take advantage of this expertise to help your company grow.
  • Regular Reconciliations: There are many benefits to having an outside party handle the reconciliations for your payroll and business transactions. These checks and balances will decrease the possibility of fraud or theft within the company. Instead of leaving this responsibility with an in-house employee, bring in an outsourced expert who can look for potential signs of employee fraud.
  • Current Expertise: Payroll services make it their job to stay ahead of the changes in the industry. If the IRS makes adjustments to tax rates, then you can rest assured to know that your company will stay up-to-date with these changes. You don’t have time to study the industry and keep up with these changes by yourself. Instead, bring in an outsourced service which is entrenched in the industry and retains current knowledge for mandates on the federal, state, and local levels.
  • Lower Stress Levels: How much do you stress every time you need to calculate payroll for your employees? This task can increase your stress levels and make it hard for you to relax during your free time. Instead of burdening yourself with high stress levels, outsource the work so that you can sit back and relax while the experts handle the details.

Hiring an outsourced payroll team is one of the best things that you can do for your company! Not only will you free up your time, but you can also have the peace of mind to know that you are missing some of the mistakes that are commonly made by small businesses.

It is important that you build the right team to support the future success of your company. If you are looking for ways to improve your financial systems, then you need to talk to us to learn more about the services that are available.

At Easier Accounting, we specialize in all types of business financial services, including payroll processing and tax filing. We invite you to call to schedule a consultation to learn more about the ways that we can support your small business. We are here to help with anything that you need! (888) 620-0770

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