3 Reasons Small Business Owners Should Outsource
Why would you outsource something as seemingly simple as payroll processing? I hear that question when the topic of outsourcing comes up. The reason to outsource comes down to essentially one of three important points:
- You aren’t an expert. As a small business owner and entrepreneur, you take on lots of roles and wear many hats. It might be that you learn what you have to know to get something done, make a decision and move on to the next task. In many situations, that’s perfectly okay. But in the case of something like payroll, it might be that you learn just enough to be dangerous – or put your business in a precarious situation. You are dealing with local, state and federal regulations. You are dealing with TAXES (and you know who you have to deal with for taxes). A payroll service like The Payroll Department is a payroll expert. Payroll processing really IS more than writing a few checks. Rely on an expert.
- The cost. Sure, to outsource costs money. But, again, in the case of outsourcing payroll services, consider the SAVINGS before you think payroll fees are too costly. First, (keeping in mind point No. 1) relying on an expert may save you fines, penalties and legal and accounting fees from improper or incorrect regulatory and tax filings. Next, consider the cost of manpower and technology to do it in-house. Technology is required and we all know it is NOT CHEAP. Specialty software, training users, paying users to use it and then updating hardware and software are all costs that you must consider. There is also the issue of security. Employees sometimes don’t keep private information confidential. The payroll data you have to retain and maintain must be kept confidential and safe. Can you see the costs adding up?
- Is it the best use of your time? You know what your time is worth and that activities to build your business are what give you the greatest payoff – not administrative tasks… but what do you spend your time doing? Experts say that if a task does not have a money-making result, you should be outsourcing it. Payroll fits that definition as do a lot of other “office tasks” that most small business owners don’t like to do and let slide. And when things slide and pile up, the stack becomes an unwieldy 8-headed monster, doesn’t it? And that means it is avoided even more.
Save yourself – and your business.
Outsourcing isn’t a bad word. In fact, it can lead to exponential productivity and growth. Spend some time thinking about it and you might just agree. Payroll is one of the easiest tasks to outsource. Just call Teresa Ray at The Payroll Department!
-Elaine of the Payroll Department Blog Team