Ask just about any CPA and they will tell you they don’t feel their clients have the expertise to properly manage payroll processing. Most will even suggest that their clients’ time would be more productive spent working on other aspects of their businesses. We tend to agree with them. Keeping up with the demands of payroll is not easy and it’s time consuming. Here are some of the other reasons you should consider outsourcing your payroll.
Saves Time
If your business uses paper time sheets, you are stuck calculating the time to pay your employees. Regardless of how many employees you have, you will also be spending time each pay period with data entry and checking your accuracy. Working on your business is a better use of your time.
Saves Money
When you hand your payroll to an expert, you can cut costs as you will not have to train employees or develop a payroll department in your company. Additionally, time saved is money saved. You won’t be calculating payroll each pay period; printing, signing, and distributing paychecks or pay stubs; generating reports for bookkeeping and accounting use; or preparing and paying payroll taxes and returns.
Avoid Mistakes and Penalties
According to the IRS, 40% of small businesses pay an average penalty of $845 each year for late or incorrect filings and payments. Not only do these errors add up, but mistakes to paychecks anger your employees. Outsourcing your payroll burden to a trained professional can take the load off of you, the business owner, and keep your employees happy.
Compliance
While the cost of penalties and interest is high, each mistake you make opens your business up to an audit. Payroll regulations change frequently, sometimes throughout a year, and staying on top of these changes is not at all easy for a small business owner. Payroll experts understand the law. That is what they are trained to do. If there are mistakes, they will make corrections and handle the liability of any errors they make.
Technology is Expensive
Investing in the latest technology is expensive. Payroll providers must invest in high performing software, technology, and support to remain competitive and cost effective for their clients.
Data Security
Much like technology, investing in the infrastructure to keep your data safe is expensive. Payroll providers make fraud protection measures affordable by sharing their costs across multiple clients.
Peace of Mind
We all know our employees mainly work for their paychecks and/or benefits. When you hand your payroll processing off to an expert, you can rest assured that the expert will manage any issues that arise with payroll. Most payroll experts also have processes in place to insure the accuracy of their work.
If doing your own payroll is taking up too much time, you’re getting hounded by state or federal reporting agencies, or you are concerned about the security of having an employee with access to their coworkers’ sensitive information reach out to us. We would be more than happy to help!
