Outsourcing Payroll Services And Enjoying Its Benefits
Payroll Services are best outsourced under certain conditions. These include absence of a competent employee to handle the payroll tasks, the high costs (i.e., salary, insurance and bonuses) of paying a full-time employee for payroll purposes, and the fast obsolescence of payroll-related technology in the market. Indeed, an increasing number of companies are tapping into the payroll services of reliable accounting firms because of the following benefits.
Outsourcing Payroll Services Reduce Business Costs
The numerous aspects of payroll preparation and documentation can overwhelm small business owners and their employees. Aside from the costs of the accounting paperwork necessary to establish an audit trail, in-house payroll preparation requires money for payment of the salary, insurance and bonuses of the employee in charge. A small business can spend as much as $5,000 on a part-time bookkeeper in direct labor costs alone!
With the payroll outsourced to a reliable accounting firm, your direct labor costs are virtually eliminated. You will pay a fixed fee for payroll services, which is substantially lower than the direct labor costs of hiring a part-time bookkeeper or a full-time employee. Keep in mind, too, that the government’s regulatory agencies will audit your payrolls. When non-compliance with existing rules and regulations are discovered, your company can be fined for these infractions.
But you can avoid these penalties when the accounting service provider takes responsibility for the penalties borne of the errors. Such a cost-saving method almost immediately justifies your decision to outsource payroll services.
Outsourcing Payroll Services Leverage The Expertise of Professionals
Yet another benefit of outsourcing payroll-related tasks is leveraging on the expertise of certified accountants and their competent employees. Such expertise covers a wide range of subjects that many, if not most, managers are unaware of including but not limited to changes in technology, tax regulations and other payroll-related matters. You will thank the amount of time, effort and energy you will save on keeping up with these changes while you attend to more important matters of business including increasing sales.
The best accounting firm can and will deliver on excellent payroll services. It is up to you, the business owner and/or manager, to take advantage of the benefits of outsourcing your payroll process.