05 Jun How Does Payroll Outsourcing Benefit Your Business?
As all small business owners discover at some point, managing a payroll is not easy. For each employee there are numerous factors to account for during each pay period: Hours worked, taxes owed, benefits and contributions, overtime, time off, etc. It’s therefore unsurprising that, according to a survey conducted by Actionable Research, nearly 75 percent of CPAs who work with small business owners discover that their clients lack the expertise needed to effectively handle payroll duties. Furthermore, 68 percent feel that their clients’ time would be better spent attending to other aspects of their business.
We can’t, of course, all afford to hire a bookkeeper to take over payroll duties—and that’s where outsourcing comes into play. For a very reasonable sum, you can outsource this tiresome task to offshore professional payroll providers and enjoy all of the following benefits:
Not only is hiring an outsourced payroll provider typically inexpensive, he or she can also prevent the kind of costly errors (e.g., incorrectly calculating income tax or benefits owed) that inexperienced employees often make when processing payrolls. You’ll never unexpectedly find that you owe an employee, or the government, a large sum of money when you work with a professional payroll provider.
Outsourcing payroll tasks allows your staff to pursue more meaningful revenue-generating activities. Because most payroll service providers are located in countries where wages are relatively low, the amount of revenue your staff generates in the time they save will almost certainly exceed the amount you’re paying your payroll service provider.
Payroll service providers are accurate, reliable, and deliver quickly.
Payroll duties are typically placed last on the “to do” lists of most business owners and employees; after all, they have more pressing matters to attend to. Unfortunately, this leads to payroll tasks being left incomplete and/or being rushed, increasing the chances of error. A payroll service provider, on the other hand, will make sure that payrolls are completed correctly and on time, without exception.
Payroll service providers are secure and accountable.
When you hire a reputable outsourced payroll professional, you’re placing payroll information in the hands of someone you can trust to keep it secure and confidential (something employees don’t always do). Additionally, when you outsource, you’ll always know who to turn to if there’s a payroll error.
Outsourcing is simply the most hassle-free payroll solution.
Because calculating employee payrolls involves accounting for so many variables, there are a lot of things that can go wrong… And they often do go wrong when inexperienced employees or business owners attempt to tackle payroll calculations alone. Worse still, when mistakes happen, employees are often so worried about their reputations that they don’t want to admit to making a costly error. This leads to blame-shifting (where one employee tries to blame another for his mistake) and can cause conflict, shattering the delicate balance of trust and cooperation that’s needed to keep small companies running effectively.
When you consider the risks described above, it quickly becomes clear why Inc. Magazine recently named payroll as the #1 most important task for small businesses to outsource. Outsourcing is a simple, cost-effective, and time-saving way to make sure that everyone gets paid correctly and on time.