The idea of using a payroll outsourcing service used to be alien to business organizations a decade ago. Today, though, the picture is completely different as business owners have come to realize the benefits of outsourcing their payroll. Whether you are a starting business or an established one with several employees, the benefits of payroll outsourcing are undeniable.
If you are not convinced, here are 5 reasons that will make you re-think:
1. You can significantly reduce the cost of hiring payroll staff.
This is the most obvious benefit that your business can enjoy with payroll outsourcing service. When you work with a payroll provider, they will shoulder the cost of running a payroll software and staff to handle the accounts for your business. If you compare that to hiring an in-house payroll staff, you will have to pay the salary of the entire staff. Annually, you can count that to over $2,000 worth of savings on direct labor cost.
2. You can optimize your use of time and resources.
This is another benefit that is directly linked to the one above. When you do not have to hire an in-house staff to handle the payroll, you can focus on the core aspects of your business. You can free up the time for your staff to focus on the value-added and revenue-generating services within your company. Therefore, you can get the most out of the labor costs for the staff you hire since you will also be getting profit in return.
3. You can make your life easier and more organized.
A payroll outsourcing service will offer a comprehensive package that includes handling the payroll of your employees, as well as benefits and tax compliance. Even though this task is considered a non-core aspect of the business, it is still crucial to the overall business success. You do not have to worry about delayed payments to your staff anymore. Plus, you can save yourself from the hassle of having to deal with tax nightmares, deadlines, and stiff penalties.
4. You can leverage the use of advanced payroll software and technology.
This is an important factor to consider for small business owners. If you have a few employees, it can be expensive for you to purchase a payroll or accounting software. But if you use a payroll outsourcing service and assign them to handle your payroll accounts, you can use the latest payroll technology without buying one.
5. You can leverage the expertise of payroll and accounting professionals.
Aside from utilizing the technology available to a payroll service, what is most important is the ability to use the knowledge and expertise of their staff. Hiring your in-house bookkeeper or accountant is expensive since you are paying for the expertise available to that accountant or CPA. But you can tap into that expertise through an outsourcing service, which levels the playing field with other bigger companies.
These five benefits are just some of the biggest benefits you can enjoy when you outsource your payroll.