Every small business is unique, right? Yet, why is it that every business owner seems to share the same challenge? No matter how successful their companies are, today’s business owners seem to be in short supply of one vital resource – time.
All those day-to-day administrative tasks involved with running a business have left business owners little time to work on what’s most important – growing sales and revenue.
One of the biggest administrative culprits? Payroll. Between calculating pay, filing taxes, and managing deductions, payroll can be one of the most time-consuming tasks for a business owner. That’s especially true at year-end with bonuses and other compensation paid, and distributions made to retirement plans.
So, what are time-strapped business owners to do? One solution that’s become increasingly effective is to outsource payroll. By doing so business owners can reduce the time they spend on payroll from hours to minutes.
Some of the benefits include:
- Cost-savings. Depending on the complexity of a company’s payroll, it may be more cost-effective to outsource the function, freeing up the business owner and staff to focus on the revenue-generating aspects of the business.
- Tax expertise. Tax laws are always changing. By employing an experienced payroll company, a business owner can ensure the company remains in compliance.
- Penalty avoidance. Given the complexity of some compensation structures, it’s not uncommon for business owners or staff to make mistakes or miss filing deadlines when processing payroll. Mistakes can be costly, particularly when they lead to fines.
- Convenience. Most payroll companies allow you to submit payroll data online or by phone.
So, while paying an outside vendor for payroll processing may cost business owners a few extra dollars, they will get a valuable return on their investment: more time. And that is money well spent.