As a small business owner, are you finding that you are consistently worrying about managing payroll? Administering payroll is essential to the smooth running of any business. However, when managed poorly, businesses can incur unnecessary costs and even run the risk of an IRS audit.
7 reasons why accountants recommend outsourcing payroll:
1. Save time.
We have written blog posts about the fact that small business owners are extremely busy. One of the tips we provided to create more wiggle room in your business week is to outsource tasks that are time consuming and overwhelming.
Productivity expert, Greg McKeown states that“we need to outsource more things to more people to free up own our time to do yet even more”. For most business owners, payroll certainly fits that bill. It is a recurring task that require a great amount of time to get it done accurately. Here are some of the steps involved:-
- Computing employee hours, voluntary deductions (e.g. 401Ks), incentive payments, sick leave as well as taxes.
- Processing any payroll changes to employee records for new hires and current employees.
- Printing pay stubs, as well as processing and distributing paychecks or direct deposits to all employees on time.
- Verifying and submitting local, state, and federal payroll taxes.
Outsourcing payroll transfers these tasks to a team of experts, freeing up time to focus on your core business.
Here at RQB, you can even provide us with the funds and we can handle all aspects of your payroll (from payroll processing, direct deposit to calculating employees’ work hours).
2. Get access to a team of experts.
Some small business owners end up working on payroll on their own even if they don’t have the training required. Why not free up your mind by handing this job over the experts at RQB? We know how to handle your payroll in the most efficient and accurate way.
In addition, in a small business, there is always a risk of turnover. You might get comfortable with your in-house bookkeeper only to find that when you need to get your payroll done, they are out sick or on vacation. Your business might not have a contingency plan if that member of staff resigns. Your in-house bookkeeper will also take their knowledge on how to process your payroll when they leave; putting your business at risk.
With a payroll service, you can rest assured that there will never be a break in the administration of payroll. Payroll service providers can also take care of all the hiring (and firing) for your business.
3. Reduce risk.
Oftentimes, small business owners pay penalties due to inaccuracies in filing and not complying with regulations. A professional bookkeeper like RQB, can report and deposit your state and federal employment taxes.
RQB also keeps abreast of changing tax laws such as the Affordable Care Act. Under these recent changes, companies with 51 to 100 employees will face a penalty if they do not offer Obamacare-compliant health insurance.
There have also been major changes to overtime rules, which we explore in this article. Instead of trying to wrap your brain around these complex and ever-changing requirements, rely on your outsourced bookkeeper to keep you informed and advise on your next best steps.
By ensuring accuracy, timeliness and compliance, you can avoid the potential for an IRS tax audit.
4. Save money.
You might think you are saving money by doing your payroll in-house — whether by hiring a part-time bookkeeper or by doing the numbers yourself. However, time is money. Payroll companies have the platforms and expertise to offer efficient services at a lower cost than having a full-time staff member doing these services in-house.
By hiring a team of experts, small business owners also save money as the payroll service focuses on timeliness and accuracy to prevent penalties and interest charges.
RQB offers comprehensive payroll packages as well as a la carte services. With us, you can pay for only what you need, and get the flexibility to grow over time.
5. Ensure confidentiality.
RQB values the fact that our clients trust us with their funds and their confidential payroll information. As such, we take data security very seriously. Your information is carefully and securely backed up to prevent the wrong eyes from accessing it.
At the same time, we are very concerned with being transparent to you, our client. You will receive receipts of all payroll transactions. In addition, we use the Department of Treasury’s Electronic Federal Tax Payment System, so you will have proof that tax payments are being made on your behalf.
6.Access technology and keep better records.
Outsourced providers have invested in the systems and payroll software that ensure the smooth running of payroll. Many small businesses are unable to afford the capital outlay for these platforms.
Payroll services also provides the ability to research and present data in a useful manner for forecasting and budgeting purposes.
Business owners will also benefit from keeping better track of employee records and can also better meet the needs of their team by offering services such as direct deposit. Employees will feel like they’re working for a company that’s well organized and funded.
7. Focus on your core business.
Payroll is a critical business function that can not only take up time and resources, but often results in headaches if carried out poorly. By outsourcing payroll, staff can focus on value-added, revenue generating tasks and expanding the business. The cost savings from choosing a payroll service can also be reinvested into the business whether in the form of physical assets such as inventory or by investing in human capital.
At Remote Quality Bookkeeping™ we provide cost-effective, efficient and accurate outsourced bookkeeping and accounting services for small to medium sized businesses and franchisees across the country.
Outsourcing payroll services will save you time and resources to focus more on your core business. You’ll also benefit from access to more technology and expertise to perform payroll well; all while lowering costs and reducing risk.