Payroll is an important part of any business operation, which is why you put so much time and effort into it. You also know it’s often more time-intensive and complex than most people would believe at first glance. Nonetheless, it must be completed on a regular basis, so you’ll just have to keep doing it.
Do you really need to handle payroll on your own?
You may be surprised to learn you have many more options than you think you do when it comes to completing this administrative task. From outsourcing to getting the right technology to finding the right partner to assist with administration, you have options.
Why Handling Payroll In-House Isn’t the Best Option
Most business owners feel compelled to handle this task on their own. After all, it must be done on a regular basis. You may feel you don’t have enough employees to warrant sending it out of house, or maybe you can’t justify the expense.
It’s probably costing you more to keep it in-house. Think about all the time and effort you put into this task. Are other tasks being neglected because you need to finish this week’s remittances or cut checks for your employees?
If you employ someone else to do this task for you, think about whether or not this is an effective use of their talents. Is there something else your HR manager could be doing that would be a better use of their time and effort?
Finally, you may also be making mistakes you’re not even aware of. This task is often more complex than it appears at first glance. Unless you’re a manager or expert bookkeeper yourself, you might be making errors that could cost in the end.
Switching up Your Technology
One of the easiest things for a small business owner to do is switch the technology they’re using. If you’re using generic accounting software or Excel spreadsheets to track your numbers, you’re not administering this task efficiently.
Instead, think about upgrading to specialized software. This software can help you administer payroll more efficiently within your business. This is also an economical solution for many small businesses.
If you’re not ready to send this task out of house just yet, a technological upgrade could help you streamline the process and get some of your time back. It can also help you reduce errors.
Partnering for Some Services
The next step up is to partner with a third-party provider for some services. You can send out your core tasks to the vendor you choose to partner with. They then administer and manage the week-to-week responsibilities.
Another alternative is to send out just those “special” tasks, the ones above and beyond the usual weekly commitments. This can be things like calculating bonuses at the end of the year or severance packages for employees who need to be laid off during restructuring. It may also include your taxes.
This way, you’re getting a helping hand, but you haven’t yet fully outsourced.
Going to Full-Service Payroll
A full-service option means you send every task related to payroll out of house to the vendor of your choice. They then take care of it, while you get back to other important tasks in your business.
This is often the most expensive option, but it also frees up your time the most. In many ways, it can also be more affordable for businesses since it has the largest impact on the process. The process becomes less prone to error, more streamlined, and more efficient. In turn, it allows you to focus on revenue-generating activities for the business.
You have more payroll options than you probably thought you did. Talk to the experts today and see what solution is right for your business.