Does the idea of outsourcing your payroll feel like losing control? Here are the facts you may be missing.
Outsourcing your payroll—many small business owners feel like handing this task over to a service could result in complete loss of control. It’s understandable. Entrepreneurs like to maintain control of the ship. They want to know what’s going on at all times, and that’s admirable. In the beginning. But if you’re successful, your business is going to grow, and with it the need for support on all levels.
When you first start a business, you might be the fulfillment manager, the sales executive, the customer service rep, the accountant, the marketing director, and the janitor. As business gets better, your company grows, and you can’t do it all. And that includes payroll. Still skeptical? Take a look at the top two things you should know about outsourcing your payroll:
#1: Handing Off the Challenges
If you’ve done your own payroll, even for a short time, you understand how challenging it can be. There is so much to keep track of and manage. Things like overtime, benefits, taxes, timing, and schedules can make your head spin. Outsourcing your accounting can help you deal with some of these challenges:
- Deadlines: the payroll process is incredibly time-consuming. It’s all about managing the data of your employees to make sure you get their checks right, and you get them to them on time. The timing can be the kicker. If you’re running your organization and trying to get checks out on time, something is going to suffer. Outsourcing payroll can help you stick to paycheck deadlines.
- Issuing the paychecks: do you have a check printer on site? You can’t just stick a check into your printer and call it a paycheck. Tracking, recording, and reporting on check output is crucial to the financial data your company records. Instead of wondering if you’re doing it right, hire a team of professionals that can guarantee accuracy and timeliness.
- Direct deposit: the truth is most companies don’t issue hard-copy paychecks anymore. Direct deposit is a necessity for most employers and employees. But what if there’s an issue? What if you need to reverse a deposit or make a correction? Are you set up to do that in-house? Imagine the time you can save by having a payroll company to manage any issues that arise.
- Compliance issues: overtime is the least of your concerns when it comes to getting your payroll right. Taxes are the biggie, and you cannot afford to get them wrong. There are serious compliance ramifications come tax time if you didn’t deduct taxes appropriately—not only for you but for your employees as well. It’s critical to get them right the first time.
#2: Taking Advantage of the Benefits of Outsourcing Your Payroll
Payroll often becomes the bane of a business owner’s existence. Don’t let payroll make you question your decision to run your own shop. There are so many benefits to hiring a payroll company.
First of all, you’ll save time. Think of the hours you’ve spent going over payroll! Many business owners feel like they get sucked into a vortex come payroll time. A payroll company can give you that time back and save you money in the process. If your business is small, you don’t need a full-time payroll employee on your staff. But you can’t do it all yourself either. A payroll firm saves you valuable time allowing you to focus on your business, and not on getting sick time right on your sales manager’s paycheck.
Second, you’ll lower your risk. Errors are bound to happen, especially if there are no checks and balances in place to prevent them. A company that does your payroll for you has those checks and balances in place. Getting it right can reduce your risk of payroll-related issues with your employees, the IRS, and the employment laws.
Don’t pull your hair out every time it’s time to pay your staff. Click or call the Accounting Partners expert team at 678-990-0924 for a free consultation and to learn how outsourcing payroll can help your business.