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Some businesses both small and large opt to handle payroll functions internally or ‘in-house’ this is often done through manual bookkeeping or through assistive software. Other business owners however opt for outsourced payroll services. Outsourcing your payroll essentially means hiring the expertise of professional payroll provider to take responsibility for your payroll. When it comes to the pros and cons of in-house vs outsourcing, lots of people have an opinion. Some professionals cite lower costs and control as perks for keeping your payroll internal however there are a myriad of benefits to outsourcing your payroll too. So, let’s take a look:
1.You can save time.
When it comes to owning or running a business, tasks can clock up quickly. Oftentimes, we find ourselves spending more time on admin and less time doing what we do best, running our businesses. As a business owner you have a responsibility to your staff, so naturally you want to take a hands–on approach to their payroll. However, you must consider – is this the best use of your time?
No matter how many employees a business has, processing payroll is majorly time–consuming task. You must take control of benefit deductions, new hires, terminations as well as Revenue criteria and guidelines. The list of specifics that play into payroll are endless and it can be overwhelming for someone whose primary profession isn’t finance!
When you outsource your payroll function to a professional you can get back to work confident in the knowledge that your accountant or provider is managing things. At Cronin and Co, we’re always happy to engage with our clients, update them and answer any questions as required. You don’t have to feel out of the loop after outsourcing your payroll. Delegating this responsibility will increase your capacity to increase profits and reduce headaches!
2.You gain access to expertise, where it matters!
As a business owner, acting as an in-house accountant, payroll can be a huge chore. Regulations regarding tax, pay, criteria and eligibility are constantly changing. If you’re not in the know, these long lists of changes and amendments can become overwhelming. By outsourcing your payroll, you can take advantage of the knowledge that the experts have in their field. Outsourced payroll services open up a wealth of knowledge that will undoubtedly help you save time and money in the future.
Don’t spend time scratching your head over new revenue guidelines, let the professionals provide you with advice and guidance on your payroll matters.
3.Mitigate mistakes.
If you’re internalising your payroll, then you’re likely to have encountered a mistake or two over the years. Unfortunately, payroll mistakes can be costly both to employers and employees. Missed hours, improper payrates, or continuous tax issues can reap havoc amongst employees. When problems with pay are ongoing, employees become dissatisfied, and productivity can suffer. For the employer, payroll errors can result in improperly calculated tax obligations. This can result in large sums of money owed, or audit stress.
Tax regulations can be tricky and when you’re a business owner, it can be tough to stay on top of everything. When you opt for outsourced payroll services, you mitigate the mistakes, and you sleep better at night!
4.Enhanced security.
Payroll processing is a complex and potentially risky business operation. Even with trusted partners, there is always a risk of identity theft, embezzlement, or tampering with company records for personal gain.
Outsourcing payroll to a stable, experienced provider can offer a safe haven for your confidential payroll data. In addition to redundant backup and multiple server locations, a quality payroll provider invests in the required equipment for storing and protecting data, simply because it’s part of the service provided to clients.
5.Cost reduction.
Typically, one of the benefits stressed for having an in–house payroll service is cost reduction. However, at Cronin and Co. we are presenting an ulterior argument. The direct costs of processing payroll can be greatly reduced by working with a payroll provider. Larger companies can often maintain the expense of comprehensive payroll departments, however for smaller businesses having an in–house payroll processor can actually inflate costs.
If your business for example has less than 50 employees, there is a very good chance you could be saving money by using outsourced payroll services. Take stock of how many labour hours you or a member of your staff spend on payroll related activities. Calculate the money and time that is spent focusing on wages, deductions and benefits which could be spent bringing your business to the next level.
As we previously stated tax mistakes can be very costly, review your payroll processes to date. Have you ever made an error that ended up costing you money in the long-run? These financial sums could presumably have been saved if your payroll was handled by professionals who have the knowledge and expertise to make the process seamless.
How can Cronin and Co help?
We are experts in outsourced payroll services and have years of experience under our belts. We believe that the key to outsourcing is finding the right partner. So, whether you are an established business or just starting out, we can implement and maintain your payroll function, freeing up your time to focus on the core activities of your business
Please contact [email protected]