How Outsourcing Payroll Can Benefit Your Business
In the course of running your own business, you’re likely to take on a lot of responsibilities. Small business owners frequently end up handling everything from fixing the sink to dealing with customer service inquiries. While a strong independent streak can help a business thrive, especially in its early days, it can also cause companies to take on tasks that might be better left to a professional. One case where this can become a common problem is payroll. It’s easy to think that cutting checks for a handful of employees is simple. There are, however, a number of pitfalls to doing the task yourself. Let’s take a look at some of the ways your business can benefit from outsourcing the job of paying employees, contractors and other stakeholders.
Attention to Detail
When you’re dealing with the needs of your own business, a lot of problems are apt to be on your mind at any given moment. As much as you might want to try to pay attention to little details of your payroll, the simple fact is that your mind is going to drift elsewhere. By outsourcing the job to a professional, you can be sure that each pay cycle is handled by someone who has done the job many times before. A professional is far more likely to catch unexpected issues and remedy them before they cause problems. This can improve your workers’ morale and free you up to handle what’s important to your operation.
The process of paying people at your business is typically governed by a large number of regulations, and these regulations are changing on a near constant basis. For example, the requirements for employer-backed healthcare coverage are likely to change in the near future. If you’re operating a construction business or a restaurant, do you have time to make sure your pay system is in full compliance with these regulations?
A professional is in a much better position to stay current with regulations. In many areas, a certified professional will also get regular notifications from the government about these changes. These are notices you may miss out on receiving. Ending up on the wrong side of a regulatory issue can cost your company dearly.
The Right Tools
Modern pay and time tracking systems are very software- and hardware-intensive, and that can make it a challenge to know what your small business really needs. A professional services provider is likely to have relationships with vendors that can be leveraged to see that you’re getting a better deal and using a system that’s suited to your operation’s specific needs. An outsourcing company is more likely to understand the ins and outs of each software package, too. It’s often simpler to find a company that understands how to use something like the QuickBooks suite than it is to spend time learning it yourself.
Every pay department is going to eventually be asked a complex question by an employee. The government may require you, as an employer, to withhold earnings to cover anything from student loan debt to child support payments. When someone within your organization has a question about this sort of issue, what are the chances that you’ll really have the experience required to address it? A professional services firm can quickly sort these types of problems out and provide concise answers for both you and members of your workforce.
As modern pay systems are heavily dependent upon software, they’re also prone to security breaches. An outsourced services firm is going to have monitoring in place to detect and prevent these attacks. You may not even know what to look for, let alone how to stop it. Your employees expect their information to be secure when they give it to you, and the best way to do that is to give the job to a professional.
Speed and Consistency
There’s a big difference between fumbling around in your office with a job versus letting an outsourcing firm deal with it. A company that regularly handles pay is likely to have the right equipment and processes in place to complete each cycle promptly. From your workers’ perspective, this means less concern about the chances that a paycheck will be late or messed up. From your end, you’ll see reduced conflict with stakeholders.
The fact that your business can handle pay quickly and on a regular basis thanks to outsourcing can also attract new talent. A company that has a reputation for efficiency and accuracy is more likely to be a place people want to work. This can have immense long-term benefits for your firm.
The temptation to take on the entire load of running a small business can be strong. Successful business owners, though, appreciate the value of delegating key tasks to others. You have workers within your organization because there’s a simple limit to the amount of work you can do in any given week. You’re also likely to depend on outside vendors and service providers to handle key tasks for your company, and dealing with a payroll professional is no different.
It’s important to focus on finding a processing firm that has modern resources at its disposal. You should also look for a provider that has experience, and it’s always wise to ask questions about their processes and procedures. With the help of a capable company, you can focus your operation’s energies on doing what you do best.