All across America, untold numbers of small business owners spend 8 to 12 hours per day faithfully serving their customers. Then they go home and spend additional time working on things such as accounting and payroll. It’s not easy, especially in the payroll arena. Federal and state regulations relating to payroll can make the task of paying employees daunting. A third-party payroll service is one solution.
Payroll services have been around since the early 1970s. However, they didn’t really take off until the early 1980s when several full-service competitors began upping their games in order to win more customers. The trend in 2016 is the web-based payroll service that tends to be more affordable and customizable.
A web-based payroll service can offer everything from basic payroll to administration of benefits, health insurance plans, and even workers’ comp insurance. Clients can pick and choose the services that are right for them; they can interact with their payroll providers entirely online – which is a huge selling point for sure.
As a small business owner, how do you know when it’s time to switch from doing payroll in-house to using a web-based payroll service instead? It’s time to consider outsourcing if any of the following seem familiar to you:
Consistent Accuracy Problems
When payroll consists of just one or two employees who consistently work the same hours and earn the same pay, things are not so difficult. But as the number of employees increases so does the complexity of payroll. With every worker, schedule, and pay scale comes additional challenges that can lead to inaccuracies.
Consistent inaccuracies lead to unhappy employees and potential problems with state and federal taxing authorities. If you are consistently having trouble with accuracy doing your payroll in-house, you might want to consider outsourcing with a web-based provider.
Unless you are in the payroll business, you should not be spending an excessive amount of time working on it. You should be serving your customers by providing the best possible products and services you can. If in-house payroll is preventing you from doing that, it’s time to consider outsourcing. A web-based payroll service could free up the time you need to give your customers the attention they deserve.
Business growth is obviously a good thing. But with growth comes more work and more headaches. The last thing a business owner needs while trying to steer a company through a growth phase is problems arising from in-house payroll. In fact, keeping payroll in-house can stunt a company’s growth by robbing it of precious resources that should be going toward marketing, customer retention, and so on.
Bottom Line Cost Effectiveness
Lastly, if you find you have to pay a full-time accounting staff just to handle payroll,you may want to consider the cost-effectiveness of what you are doing. That staff may be better utilized to handle other office functions instead. In other words, it may be more cost-effective for you to outsource your payroll rather than paying your staff to do things in-house. The money you save by outsourcing could be put into capital improvements or hiring additional staff.
Running a small business is by no means as easy as hanging a sign on the front door. It requires a lot of effort, commitment, and a willingness to do whatever is necessary to make it work. That may include taking payroll out of the office and outsourcing it to a web-based payroll service. If any of the things mentioned in this article apply to you, consider going outside for payroll administration.