If you are the owner or manager of a small business, you know all too well how important it is to optimize the business on all fronts to maintain financial health and to keep the company running on all cylinders. For companies that opt to utilize payroll services, positive business outcomes can be a huge result. Here, we look at why and in which situations payroll services are a good idea for businesses looking to advance company objectives.
Reasons to Outsource Payroll Services
As the person responsible for your business and its operations, you are likely pulled in a million different directions. And unless your business happens to be payroll service, you probably did not start the company because you are passionate about that type of administrative task. In addition to helping you spend more time on the elements of your business that you like, outsourcing to a company offering payroll services can also have very practical utility because it also allows you to focus more of your time and energy on the activities you can do to improve efficiencies and generate more revenue for the company. If you are spending a ton of time trying to manage payroll every other week, what is the opportunity cost?
As mentioned above, your time is only worth as much financially as you are able to generate. So one way that outsourcing to a company that offers full payroll services is that you spend your time generating more revenue. Great.
But have you also thought about the financial implications of a mistake in payroll? Trying to manage payroll on your own is a lot like trying to install an electrical panel at your house without the help of an electrician. (Okay, it may not be fatal or as dangerous as that, but you get where we are going with this.)
Qualified payroll services specialize in accuracy and precision. Taking advantage of payroll services and their expertise means that you are shielded from the costs associated with fixing a simple mistake, dealing with long-term errors, trying to untangle inaccurate records and potential tax penalties.
And using a company that offers payroll services rather than paying a contractor or employee hourly can save you tons of money in direct costs associated with payroll as well.
Get an outsider’s perspective
Your payroll is much more than just the way that your employees get paid. Payroll data can offer a ton of key insights into operational aspects of the business. And by having someone with enough distance from the company to look at the data in an unbiased way, a person providing you with payroll services may be able to point out trends in the data that can help you optimize your strategy for good business outcomes. For example, if the person handling your payroll notices that your workers are paid out a ton of overtime during specific months, it may make sense to bring on seasonal help during those months to cut down on your labor costs.
Keep up with regulations
At the local, state and federal level, businesses have to adapt to changing regulations with regard to their payroll practices. But keeping up with the number of changes made in all of these can be a full-time job in and of itself. And not complying leaves your company vulnerable to a ton of different penalties and perhaps even a lawsuit. Outsourcing your payroll services to PayTech allows us to keep track of all of the craziness for you.
Take Prop. 206, for example. As a result of this legislation, payroll must be processed in a way that provides documentation of sick time accrued and used by employees. Someone dedicated to payroll services will be able to quickly and accurately make those changes to your payroll process, eliminating headaches and hassles for you and ensuring a seamless payroll process for your employees.
So you are sold on the benefits of getting someone else to handle your payroll services, but prefer to work with a contractor or employee? What happens when either you or the individual in question decides that it is time to part ways with your company? Or say you get along great but the person doing your payroll gets hit by a bug (God forbid!). By investing all of the knowledge of your company’s payroll process in an individual person, you run the risk of having to start from scratch when you lose that knowledge. By instead contracting with a small to medium sized payroll services provider, you can be sure that there are institutionalized practices that ensure that your payroll services can continue seamlessly regardless of any bus accidents while still getting the personalized attention that you will not get from large providers like ADP.
Whatever your situation, we would be honored to help with your payroll services — there is no company too big or too small! Contact us for a free consultation and let’s see if we are a good fit for you and your company — chemistry can be a finicky thing! We look forward to hearing from you!