Why Outsourcing Payroll is a Good Call
Why Outsourcing Payroll is a Good Call
A common interest for any company big or small is expanding their profit margin. Society progresses by how well it adapts and expands itself. Increasing the profit margin of a company is not just selling more products or gaining more clients. It also revolves around spending less of the profit earned. Because of this it may seem sensible to keep your payroll and human resource departments within the company. Is it really though?
Everything a company does to create more profit or cut costs will require funds in some way. An in-house payroll department has very obvious costs, such as hourly pay for those involved, costs for programs and printer costs. There are other costs that can show up from an in-house payroll department. Depending on the company itself, weighing these costs against the cost of an outsourced company may have surprising results. Below are some reasons you should look at the possibility of outsourcing.
Save Time: How much time will you be putting into payroll? An hourly wage has to be paid to the employee handling it. What if that employee was put to use somewhere else? What if you are the one handling it? Can you list 10 things you could be doing instead? Some business owners can most likely think of a 100 other things they could be doing to help their company grow instead of managing payroll.
Reduce Liability: Mistakes happen. Sometimes it is not always our fault that they happen. The world of payroll and human resources is evolving every day. Unlike the normal everyday mishaps that can be easily corrected or moved on from, payroll mistakes can involve heavy penalties and fines by the IRS. These mistakes can be as simple as missing deadlines on certain payroll items or tax time paperwork.
Less Complexity: Simplicity is bliss. It lets you work faster and get more done. Payroll can be filled with complex agendas. Keeping on top of tax and labor laws while also keeping track of your own payroll can be both confusing and time consuming.
Making Money: In theory, in-house may seem cheaper than outsourcing. From a pure payroll stance it may very well be. A point that must be taken into consideration is even if it costs a little extra, how much extra income will be made from the time it frees up? If outsourcing costs an extra 100 dollars a month, but it allows you to bring in an extra 300 a month in profit, then the transition will still be a sound investment.
As the old saying goes, time is money. Don’t fall behind because you got buried beneath unexpected payroll and human resource responsibilities. Move ahead with a helping hand and look at outsourcing options today.
