It’s common knowledge that outsourcing administrative work helps you save time and money. But what we fail to understand that outsourcing payroll can also boost productivity and leave more time available to focus on tasks at hand. Payroll calculations can be overwhelming and provide no tangible monetary returns to your company.
In the past, only larger companies practiced outsourcing, but in recent times startups have also adopted the practice of handing their payroll and bookkeeping duties off to solopreneurs, often to much success. It helps companies to focus well on their strengths and daily operations.
We’ve assembled this informative list of reasons why outsourcing payroll will save you valuable time and money!
Expertise
A qualified payroll management agency employs people who are skilled and knowledgeable about the in’s and out’s of payroll management. These individuals specialize in the complexities of payroll taxes, as well as compliance with government regulations. It’s what they’re trained to do and part of the guaranteed service they provide.
Payroll professionals are required to take up to date compliance training courses to stay up to the law’s standards in regards to payroll procedures. If you don’t know what you’re doing, you could really screw up someone’s salary, and potentially cost yourself thousands. When it’s all said and done if you want to get the most bang for your buck…go with a pro!
Compliance
Small business owners usually aren’t experts in the complex language of government tax regulations. Also, they are legally responsible for any discrepancy or failure to accurately report employment earning to federal and state government agencies.
Mistakes can lead to costly audits and penalties, which can be devastating to small startups, and no small business owner wants to fail.
Security
The transmission of financial data is a complex and potentially risky maze to navigate. Even with trusted employees, there is always a risk of identity theft, embezzlement, and even records tampering to unscrupulous ends. There’s also the constant risk with any in-house payroll software, that the company’s server or network could be compromised, leaving your company’s sensitive financial information at risk of being stolen and misused
In comparison, online solutions offer a safer option for transmitting confidential payroll data. In addition to anti-redundancy systems, and multiple server locations, a quality online payroll provider must no doubt invest in cutting-edge encryption systems for storing and protecting data, allowing them to keep your finances secure.
Time is Money
With payroll outsourced, you will have more time concentrate on prioritizing and optimizing your business. This will allow you to streamline productivity, and more easily pick up on company successes and shortcomings.
Your employees’ time is valuable too. Don’t bog yourself of your employees down with uncertainty about whether they are being properly compensated, and whether or not proper taxes are being deducted. It’s important to allow employees to work on the tasks they were hired to do in a stress-free environment. Keep this in mind and you will no doubt have happier, more productive employees.
Protect Yourself from Costly Audits
Like I always say, by outsourcing payroll, companies can give away the liability and risk associated with the task. A good example is payroll management. Outsourcing it to a payroll service provider gives a company the freedom to focus on other core activities of the business.
Outsourcing payroll will immediately free up valuable and costly time. Employers generally only need to contact their customer service representative once each pay period.
If you are a small business owner, you’d definitely be better off outsourcing payroll with experienced companies like Excellent Admin.