Outsourcing payroll services saves small businesses money and shakes off the headache of having to micromanage this tedious task. Payroll processing is time-consuming, and in business, time is money.
Questions to ask regarding outsourcing payroll
There are pointers to consider on whether or not you should do outsourcing. Here are some questions you may ask yourself, and your prospective payroll service provider.
- Will savings be significant in the short-term and the long-term?
- Do I have people capable of doing payroll, if yes, how much time do they need, how much does that cost? (Compare the answers and analyse cost benefit)
- Do I have instant access to data and details of my staff?
- How does my service provider communicate?
- How secure is my data and what technological resource would my service provider use?
Benefits of Outsourcing Payroll
Probably the most obvious benefit. Outsourcing your payroll processing gives you added time to focus on building your business. As an owner, you and your staff should dedicate most of your time in establishing, improving and marketing your products or services. It doesn’t matter how few your employees are. Most business owners underestimate the time required to process payroll. Before they know it, it has caused them valuable time and effort they could’ve put elsewhere.
If you’re losing time, you’re losing money. Instead of being face-to-face with customers, gauging interest, knowing their wants and needs and improving your product or service offerings, you’re left to do payroll. Opportunities were lost because you’re trying to figure out if super contributions were paid accordingly, taxes were computed right etc.
The actual cost in itself is reduced. If you are able to calculate your own time as an owner and compare it to the cost of outsourcing payroll, there will be significant savings.
Experts do your payroll
You’ll have the peace of mind knowing your payroll is done by those who enjoy doing it. Most online bookkeeping solutions stay on top of every change and news in the accounting industry allowing them to adjust rates based on new legislation without hiccups. We know of other small business owners who second-guess what they’ve done in their bookkeeping and payroll. That’s not good. You’ve invested time doing it and yet, you aren’t sure if they’re accurate. You avoid confusion among your employees with regards to their pay by relying on payroll and bookkeeping experts.
Scalability, preparing for growth
If you do your payroll processing now and find it manageable, would it still be when you add one, two or more employees? Growth is at the top of every business owner’s mind, having a scalable and reliable payroll process will make transition smooth.
You would have to find out the answers to the questions we’ve posted above as they relate to your business. Making wise business decisions depends on having an informed mind. We believe outsourcing payroll is safe, cost-effective and a no-brainer to you as a business owner.
If you need help in setting up your payroll, contact us today.