5-minute read
If you run a small business, there are a number of reasons why you should outsource your payroll. We’ve taken a look at why businesses do their own payroll in-house and the primary reasons to make the change to outsourcing.
Reasons to Keep Payroll In-House
Plenty of small businesses still do their payroll in-house, so there must be some good reasons, right? Well, it turns out that most of those reasons are easily dealt with by outsourcing payroll to a professional Certified Public Accounting (CPA) service.
#1 Businesses Want to Control Payroll
Some businesses worry that they need to control every aspect of their business themselves and they think outsourcing means losing control. In fact, outsourcing accounting tasks gives you back control because it frees up time to spend on the aspects of your business that you’re really passionate about.
#2 Sensitive Information Concerns
Any small business wants to know that their sensitive information is secure and confidential. Because of this, a business might decide to keep every aspect of their business in-house. Outsourcing to a professional accountant is sometimes actually more secure, as you have a financial expert dealing with your payroll with experience in keeping accounts and financial documents and files secure.
Reasons to Outsource Your Payroll
Now you realize there aren’t really any compelling reasons to keep your payroll in-house, what are the benefits of outsourcing payroll for small businesses?
#1 Experts in Compliance
Payroll isn’t just about crunching numbers the right way. There’s a range of compliance issues to consider, which change from state to state. When you outsource your payroll to an expert team who understands these complexities, you know that your accounts are in safe hands, and you’re not at risk of penalties for failing to follow the right rules and guidelines.
#2 Regain Your Team
Processing payroll and filing payroll returns is not a good use of your money and your full-time employees time. There’s no need to pay additional admin staff or hire a payroll team when you outsource to a professional CPA at a fraction of the cost.
#3 Better Technology
If payroll isn’t your business, then you likely don’t use the best in breed for payroll. That’s not the case with many CPA firms, including AccountedFor. Payroll is part of what we do so we use the best in technology so that you don’t have to.
#4 A CPA Can Grow With Your Business
In-house payroll officers or teams might be used to dealing with payroll for a handful of employees, and they might be doing an expert job. But as you grow, will your in-house team be able to cope with double or even quadruple that number of employees? Watching your small business grow brings a real sense of achievement and outsourcing your payroll allows you to keep up with the growth and remain focused on what matters.
#5 Consistency
When you work with an expert accounting firm for your payroll, you know that you’re going to get the same level of service, week in, week out. Professional accountants quality check everything, to ensure the highest standards for their clients. That’s because they want to provide a great service and promote and protect their brand reputation. Always asks your payroll service provider about anything you’re unsure of. Normally, they can set your mind at rest very quickly, as they’ve had to deal with all sorts of accounting scenarios and many payroll queries—for all types of businesses.
#6 Productivity
Unless your business is admin, you, your team, or your employees, spending hours on admin is a waste of company time. Think about the employee-hours you use as a business doing administrative or accounting tasks. Now, think about how much it costs—not just in terms of paying someone to do those tasks, but in terms of what they could be doing instead. This is particularly key for small businesses who have come to the point where they realize their payroll needs more attention in order to be accurate and compliant. Hiring and training a payroll admin assistant is a huge expense, especially when you consider company benefits, sick pay and other factors that affect every employee.
A dedicated payroll team that you outsource to will always have someone on hand to offer expert advice. They won’t take time off sick, because they’re a team whose job is to provide you a service. And, above all, your payroll will be in the hands of highly trained experts. Isn’t it time you let the experts get to work?