When you run a business, there are many tasks that you can choose to outsource. The issue is deciding which of these tasks is worth having someone else do and which ones you should take care of in-house.
While there are many advantages to outsourcing in general, there are some specific benefits of outsourcing your payroll. This article will explore the top ones and give you an indication of whether outsourcing this common business task is the right option for you.
More Time Saved
After outsourcing your payroll, the first fantastic benefit that you will experience is saving time. By eliminating the many hours you spend performing payroll on your own, you can focus more time on your business and what makes it thrive.
It is difficult to estimate how much time you will save. However, there is a general guideline that you can follow. In most cases, outsourcing your payroll will save you about 10 hours each month. As time goes on, that time saved will add up to something you truly notice in your work.
Less Money Spent Overall
This next point is somewhat counterintuitive. After all, most business owners assume that they are saving money by performing payroll on their own. However, this often proves not to be the case at all.
Instead, by saving immense amounts of time, you’ll also save on your overall costs. While there may be a larger up-front cost of hiring someone else to do your payroll, the time you’ll save over the long term will be worth that initial price.
Guaranteed Compliance
If you perform payroll on your own, there is almost a guarantee that you will make a mistake of some sort. Whether you make an error in how much your employee should receive or you mistakenly fail to record your payroll properly, the odds that you fall out of compliance will be significant.
Fortunately, a skilled payroll service will help you avoid these lack of compliance issues. The best payroll companies will know how to complete your payroll correctly the first time. They will also ensure that your company remains in compliance regarding payroll for as long as you are in operation.
Improved Security
When companies perform payroll on their own, they guess that they have greater data security for doing so. By keeping payroll in-house, there is less of an opportunity for outside agents to gain access to your data or the data of your employees. However, this does not always prove to be the case in reality.
In many cases, companies will experience an improvement in their data security as soon as they hire a reputable payroll company. A payroll company that has the proper experience will help to make your data more secure than ever before. That adherence to security and compliance ensures that your company will not experience a data breach as a result of its payroll practices.
Fewer Errors
By now, you should have a good idea that performing payroll independently can lead to several errors. Whether you fall behind on your compliance, make a security error, or make any other form of mistake, doing payroll on your own can lead to many different headaches.
By contrast, a payroll company will have specialized experience in avoiding these errors. A payroll professional will complete your payroll service without any errors, keeping you ahead of those who want to enforce compliance, breach your data, or anything else.
Ability to Scale
The goal of nearly every business is to get larger in nearly every aspect. Naturally, as your workforce grows, so will the time you need to spend on payroll. Additionally, you’ll find that payroll eventually takes away from your ability to grow your business larger.
When you have a large group of employees, one of the best choices you can make is to outsource your payroll. A payroll service will also be ready to scale as much as you need as your operation grows and you bring more workers on board.
Better Tax Preparation
After you perform payroll services on your own for the first time, you may discover that you are not at all prepared for tax season. After all, there are many ways that you can do your payroll and your taxes incorrectly in the eyes of the IRS.
The good news is that a payroll service will help you with your payroll and your tax preparation. By hiring a payroll company like S-FX Small Business Solutions, you can ensure that you are well-prepared for tax season during every year.
A Few Minor Cons to Outsourcing Your Payroll
Although there are many benefits to outsourcing your payroll, there are some cons that you should be aware of before you make this decision for your company. The list below shows a few of the downsides to picking this type of service:
- Upfront costs: If you begin outsourcing your payroll, you’ll notice that you need to pay more upfront for this service.
- No direct control over payroll services: As soon as you hire a payroll service, you’ll lose a degree of control over your payroll processes.
- Lack of control over the company: Unfortunately, if the company you choose for your payroll service goes out of business, there is nothing you can do other than find a new company or take on payroll services independently.
Recognizing the cons is important. However, we believe that the many benefits outweigh the downsides of outsourcing your payroll. For most businesses, outsourcing payroll is the right way to go.
Find the Right Payroll Service for You!
Outsourcing your payroll has many benefits, which the article above has explained in detail. The only next step for you to take is to find the right payroll service for your company. Once you do, you’ll begin to experience all the advantages that we have explained above.
The truth is that not all companies are equally capable of taking care of your payroll and returning the many benefits that we have described. If you want the best payroll service you can find, we have what you are looking for. Reach out to us today to learn more about how we can help your business thrive.
