As any business owner knows, payroll is one of the most time-consuming and stressful aspects of running a business. It requires not only immense amounts of attention and precision, but a certain level of expertise that the average business owner may not possess. There are complex government regulations and security issues to consider as well. Outsourcing your payroll can alleviate all of the stress that comes along with it. Here are some of the major advantages:
Whether your business has 10 employees or 100, payroll is a demanding task. There is a painstaking amount of detail involved, and it is a truly time-consuming job, and it is repetitious. Whether your pay period is weekly or biweekly, payroll requires a business owner to input large amounts of data and carefully check for errors. Outsourcing can save you this time, freeing you up to attend to more pressing matters such as customer service, quality control, or any facets of a particular business.
Payroll processing is complex, and can also be risky if done in-house. Whether the owner of the business is responsible for payroll or a de facto accounting department handles the payroll, there is a risk of identity theft, servers being hacked or breached and personal information being stolen. Outsourcing to a reliable, certified accountant can alleviate this risk. In a constantly shifting world, having the security of your business and employees in professional hands will help keep your stress levels low. Running a business is stressful enough, and having to worry about the security of your personal information is an unnecessary weight on your shoulders that can be lifted by simply outsourcing your payroll responsibilities.
In the majority of cases, small business owners aren’t particularly well-versed in the complex realm of government tax regulations. With that being said, small business owners are legally responsible for any misrepresentation or error in reporting employment taxes at the state and federal level. This can be problematic and lead to audits and fines, both of which no business owner wants to deal with. The IRS estimates that around 40% of small businesses will pay fines for erroneous representations or reports, averaging around $800. On top of this, these regulations are constantly shifting, and it seems implausible for most small business owners to be able to keep on top of this along with running a business. Having a professional preform payroll processing diminishes potential errors and fines, making it a much easier and safer option.
In addition to these advantages, there is the draw of professional expertise that outsourcing to an accountant provides. Having the peace of mind knowing that all your payroll needs are being satisfied in a timely, professional manner with advanced security. It is a minimal expense for something so important and vital to a business’ operation. Payroll, although not a flashy or exciting responsibility, is among the most important to a business owner. The safety and security a professional provides takes that overwhelming responsibility off of the mind of the business owner and allows them to focus on things that are more important to them at the heart of their business.
Author: Tyler Nolan, staff writer at Encompass Accounting, Inc. Twitter: @T_Nol_