When Small Businesses Outsource Payroll
By BuildMyBiz on September 15th, 2012
Like most tasks in a small business, there is more than one way to produce payroll each period. This white paper analyzes three options for payroll processing–manual bookkeeping, using in-house bookkeeping or payroll software, and hiring a professional payroll provider.
Many firms choose to handle the payroll function manually in house, typically for cost, cash-flow flexibility, or control purposes. Yet, as this paper outlines, there are a number of drawbacks to this approach, including lost productivity, errors, and security and storage risks.
Payroll software gives businesses the convenience and sophistication of software entry, along with some of the hands-on control of manual processing. Yet, it still takes time to input the data correctly, report and remit taxes to government agencies, maintain the software, and keep up to date with the latest government requirements.
These disadvantages are why over 85 percent of certified public accountants recommend that small businesses employ the expertise of professional payroll providers. Specialized payroll-processing companies provide secure and accurate payroll for small businesses, and often offer additional human resources services that help manage workforces of any size.
Ultimately, outsourcing helps management put more time into what they really do best and into more productive tasks that directly affect the bottom line. Business owners can even use the additional time for strategic improvements of the business, or for hobbies, friends, and family.
Read the rest of When Small Businesses Outsource Payroll.
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