Even if you’re the most meticulous and dedicated business leader, you probably find payroll to be a headache. Who knew the simple fact of paying employees could be so confusing and time-consuming?
That’s why many growing companies outsource this tedious back-office task. If you’ve ever considered delegating, you’re in luck: we’ve got a guide to the top five benefits of outsourcing payroll services.
Here’s what you should know.
1. Outsourcing Payroll Helps Save Money
When you’re managing your payroll in-house, it may not be the most cost-effective approach. In-house payroll management usually means you’ll need accounting software and training to use the program correctly.
In addition, even small payroll mistakes can lead to issues that further waste valuable money. The IRS audited over 1.8 million tax returns in 2016, leading to penalties for just under a million businesses. These penalties, of course, can be a major concern for a small company.
2. Outsourced Payroll Services Help You Focus on What Matters
Unless your business revolves around payroll services, you likely have more important things to take care of besides the minutiae of payroll. As a business leader, your job is to focus on the big-picture, strategic decisions that help your company move the needle. More than likely, your team also has critical day-to-day work that doesn’t revolve around payroll processing.
When you outsource payroll or use payroll software, you and your team will have more time available to dedicate to what matters, allowing you to perform tasks that generate more revenue for your business.
3. Outsourcing Payroll Services Saves Time
Some business leaders are surprised by how long it can take to do even the simplest payroll processing. This can include calculating payroll, printing and distributing paychecks, calculating payroll taxes, generating reports, and more. What’s more, payroll never ends: you’ll have to perform these tasks again each pay period!
When your time is money, delegating this task is the way to go.
4. Outsourcing Payroll Ensures Compliance
If you’re working with a small- to mid-sized business, the prospect of ensuring compliance with government regulations can feel overwhelming.
To tackle payroll adequately, you and your team may need to spend time wading through relevant regulations, from labor law to tax laws to social insurance law. These technical regulations can be hard for laypeople to understand at times, causing needless headaches and worry.
With payroll management outsourcing, you’ll know that all government guidelines are being followed, giving you and your team more peace of mind.
5. Outsourcing Payroll Gives You Access to Expert Insights and Tools
A veteran payroll provider can tackle even the most complicated payroll situations and questions.
This is why it’s important to make sure your provider is knowledgeable about your specific needs and location. If you have dealings with employees in Australia, for example, you may want to reach out to outsourced payroll services in Australia. If your employees are international, it’s best to work with a provider who understands international law.
In addition, payroll providers may have access to tools that provide a safe haven for your valuable private data through redundant backups, enhancing your company’s security.
Consider Finding the Right Payroll Provider for Your Needs
If even a single one of the benefits above would be helpful for your company, you may want to seriously consider partnering with a provider for the purposes of outsourcing payroll services. When you give your company the gift of more time and money as well as expert help, you free your team from distractions that hinder their ability to do their job. Try outsourcing, and see how much further you and your team can go!
Looking for more of the finance tips you should know? Check out our other blog posts for helpful guides and insights.