Don’t You Love Doing Payroll?
Payroll is sort of like brushing your teeth. You know it’s an essential part of what you do, but it’s not the first thing you think of when you think about setting yourself up for success.
But payroll makes a big difference to your business, and payroll mistakes can cost you big.
This is where outsourcing payroll can be a huge benefit to your business. Keep reading to find out how outsourcing your payroll can help your business make the most of 2019.
One of the best benefits of outsourcing payroll?
When you process payroll in-house, one of the biggest drains on productivity is the time it takes to crunch the numbers.
If you run a large business, the sheer volume of payroll you have to handle will slow you down. If you run a small business, you can’t spare a single employee, but you can’t afford to skip payroll either.
Outsourcing your payroll allows you to focus on running your business instead of scrambling to keep up with the numbers. And that’s a big deal for your overall productivity.
Focus on Your Core Value Proposition
When you have more time to focus on running your business, you can spend more time focusing on what you do best.
Payroll is a critical function that doesn’t increase sales per se, but it is an essential part of your business. And it comes with a lot of rules and regulations you have to follow.
Unless you’re a trained accountant, you probably don’t know the full extent of those rules. You could figure it out for yourself, but that could take quite a while. You may not even know everything you need to learn about.
Instead of wasting time and resources, you could outsource your payroll to an expert. You can rest assured your payroll is done right, and you can spend your time providing better products and services to your customers.
The Best Knowledge and Technology
You might think that outsourcing payroll costs more than doing it yourself, right?
But when you break down the cost-benefit analysis, it’s actually a more efficient use of your time and resources.
When you manage payroll in-house, all you have to work with is the resources you have on hand. Most businesses don’t have access to the best payroll technology out there because it’s not their number one priority. The same goes for payroll professionals.
When you outsource payroll, you know you’re hiring people who have already been vetted as capable professionals. And since you’re the customer of this payroll service, their job is to give you the best experience possible, which means using the best technology they can offer.
Many managers hesitate to outsource payroll because they think it will cost more. And initially, that might be true. But in the long run, the overall costs of payroll are dramatically reduced when working with a payroll service.
For small- to medium-sized businesses, in-house payroll is a massive money drain. Think about how many hours your employees work. Now think about the work you have to do to create payroll. You’ll have to:
- Calculating payroll each cycle
- Printing, signing, and distributing paychecks
- Training and support
- Maintenance of payroll software
- Preparing tax information
- Preparing accounting reports
Now think of how many hours a payroll manager would have to work to manage all of that for you. Think about how much that will cost you.
Instead, you could pay a payroll service or bookkeeper a flat fee to manage the whole process for you.
Which one sounds more cost-effective?
Don’t make a classic small business financial mistake. Be smarter.
Avoid IRS Penalties
Unfortunately for small business owners, tax regulations are changing all the time.
If you’re not up to date on the latest changes in tax law and how they affect you, there’s a much higher chance that you’ll make mistakes when filing your payroll and taxes.
And that can cost you big when the IRS comes collecting for penalty fees.
When you bring in a professional third-party service, you’re hiring professionals who are current on the latest changes. This way, you won’t have to worry about regulatory issues, and you can keep your attention where it matters: on your business.
More Hiring Flexibility
Part of good management is hiring the people your business needs.
If you have to compromise on finding the right people, your business will suffer.
Here’s the problem: as your business grows, you’ll have to continually staff your payroll department to keep pace.
If you hire a service to manage payroll for you, you don’t have to worry about staffing a payroll department. Instead, you can focus on hiring the employees that will actually bring money into your business.
You want to trust your employees. And you’re not going to hire employees that you don’t trust.
Even so, processing your payroll in-house is a security risk you can’t afford to take.
With an in-house payroll staff, they’re as much a part of the office as any other employee. That’s concerning when you remember that your payroll staff handles the personal information of every other employee.
With an in-house staff, there’s always the risk that personal information could get shared or seen in the office.
Instead, you can avoid the risk altogether by taking your payroll outside of the office to a trusted third-party service. Remember, you’re their customer, so your information security is a big deal to them.
Need Help Outsourcing Payroll?
When there are so many benefits to outsourcing payroll, the real question is why you haven’t done it yet.
If you’re looking to outsource your payroll, you’ve come to the right place. We offer comprehensive payroll solutions that meet your business needs so that you can focus on what you do best: keeping your customers happy.
Want to see how we can help? Click here to book an appointment today.
Work With the Pros
At Phase Business Management, we can help you understand taxes, minimize cost inefficiencies, and even process your payroll. Our tax preparers and accountants want to work with you to make sure your small business management practices are automated.
Check out what’s new with us, or book an appointment today. We look forward to hearing from you!