Outsourcing is an established element of the modern business landscape. Even startups and newly launched businesses routinely outsource at least some functions, such as IT. Of course, it’s not always clear that you need to outsource something.
Sometimes, you need to step back and look for signs that you should outsource a task. For example, it will improve efficiency for your team. One task that business owners often overlook for outsourcing is payroll, even though it’s a prime candidate.
Not sure how outsourcing to a payroll company will help? Keep reading for five key benefits of using a payroll service.
1. Expertise
Payroll isn’t a static element in your business. The regulations governing withholdings can and do change. Staying up to date on all of those changes can prove daunting for even the most dedicated business owner.
When you go with a reputable payroll outsourcing company, you can expect them to stay updated. Knowing those rules and regulations is part of their business model.
2. Free Up Time
Whether you handle payroll yourself or hand it off to a trusted subordinate, it’s a task that consumes a lot of working hours. All those hours devoted to payroll are hours not spent working on or in the business.
Handing it off to any of the established payroll companies gives those hours back to your business.
3. Better Security
Dealing with payroll means dealing with your employees’ identity information and even financial data. If that data gets compromised, you can find yourself in a lot of trouble.
Payroll processing companies understand those risks. They also know how to protect that data better than almost any business owner.
4. Less Stress
Payroll can trigger stress for a lot of reasons. Watching all that money go out the door can do it. Sadly, no amount of payroll outsourcing can fix that.
All of those lost hours, data security concerns, and worries about compliance and add up to a lot of stress. Outsourcing your payroll needs lets you eliminate all of those stressors.
5. Reduce Costs
Keeping payroll in-house isn’t a particularly cheap option when you add it all up. You can end up footing the bill for software, check printing equipment, and training for whoever handles payroll. Not to mention whatever you lose in revenue for the time someone spends handling payroll.
When you add up all those costs, outsourcing frequently proves the more economical option.
Is a Payroll Company Right for Your Business?
If you run a very small business and your entire payroll is a few people, outsourcing may not make sense. Once your employee roll starts growing, though, using a payroll company makes more and more sense.
The more employees you have, the more time-consuming payroll will become. On top of that, you run a greater and greater risk of human errors creeping into the process. Those errors can create compliance problems of their own.
Looking for more business finance tips or insights? Check out some more of the finance articles in our Business section.
