Business owners have a knack for cutting costs (the good ones, anyway). Most don’t mind doing some extra work to save some extra money. It can be a challenge to know where your money should be spent and where to hold back, but in some cases spending a little can save you a lot.
Although every business is different, they all have one thing in common: the daunting task of payroll. But good news– outsourcing payroll tasks to a provider can save your business both time and money. By having tasks like direct deposit, tax filing and check issuing done for you, you are left with more time and resources to put into the more profitable areas of your business. There are many benefits to having a payroll company with convenience, improved record keeping, compliance and accuracy at the top of the list.
So, we’ve established that outsourcing payroll will save you time and money, but what about space? That’s right when you work with a payroll provider you simply transmit the information directly from your computer to theirs and let them take care of the rest. No need to take up office space for storing checks or to tie up printers to print them. If you prefer to use direct deposit, payroll just got that much easier. Most payroll providers will automatically deposit the money you have a set aside for payroll into each employee’s account on time, every time. You don’t have to worry about signing checks or authorizing payments on payday.
If you are like millions of other business owners, you know the importance of organization. That, however, does not mean you are always the best at keeping things where they should be. Payroll providers keep track of things like how much you spend on base salary as well as deductions including taxes, insurance, union dues and wage garnishments. Outsourcing your payroll also means outsourcing your records. Everything is stored electronically where it is easy, accessible and yes, that’s right–organized.
One in three business owners is penalized for incorrect tax filings. Penalties are not what any business owner wants to spend their money on. Payroll services completely take that worry away by tracking, calculating, filing and paying local, state and federal taxes for you. If that’s not enough, most companies offer and no-tax-penalty guarantee. They also make sure that employees get their W-2 forms in compliance with federal laws.
Accuracy is not even a question when using a payroll company because payroll is their business. You can be sure that experts are on the other end of the line making sure that things are being done how they should be. These professionals are familiar with taxes and deductions and they know how to deal with any issues that do come along. For businesses that do not have the same payroll week after week, these experts are equipped to deal with changes making sure that all parties are getting paid correctly. This also eases worry for companies that do not have the resources to hire a bookkeeper or payroll specialist to keep track of their ever-changing payroll.
Outsourcing payroll is always a big question among business owners. At first glance, is seems wrong to pay for a service that you can do yourself. However, when you take in to account the time and money you can save as well as the security and compliance accuracy of using a payroll provider, it makes sense. So save the cutbacks for the fancy coffee and pizza Fridays and spend a little where it’s going to save you a lot.