As your company grows bigger and you hire more people, managing payroll becomes a significant task. You either need an in-house team to handle the payroll, or you can outsource it from a specialized service provider.
In this article, we are going to talk about the advantages and disadvantages of outsourcing payroll for your business. This will help you decide whether outsourcing would be a good option for your firm.
Pros of Outsourcing Payroll
Save Time & Effort
Payroll management involves dealing with lots of data and calculations, which inevitably means it’s time-consuming. If you and your team are spending a large share of your time sorting out employee payroll, you will have very little time to look after other important business needs. This is why outsourcing payroll is a smart solution—you will save a ton of time and effort, and shift focus to core business.
Unless your in-house team is thoroughly professional at managing payrolls, some mistakes can crop up occasionally. And as an employer, you would never want to mess up your employees’ salary, bonus, and other related calculations. Outsourcing payroll to a third-party service provider mitigates this risk. They will have experts to do all the tedious calculations flawlessly, and you can have complete peace of mind.
Hiring an in-house team for payroll management can be a hefty expense for your business. Depending on the size of your firm, you’ll need to hire one or more bookkeepers, your accountant has to take on additional responsibilities, and you’ll need to purchase special software for managing bookkeeping and payroll. When you outsource payroll, the company you’re hiring will take care of these tasks against a fee, which will be way lesser than if you did everything in-house.
A big part of payroll management includes the calculation of taxes. If you by any chance miss a tax filing deadline, you’ll have to pay heavy penalties. With outsourced payroll, the service provider will make sure you never miss a tax deadline and keep you up to date with the latest developments.
Keep Things Organized
Being a responsible business owner, you want to make sure your employees are getting their salaries, bonuses, and other remunerations on time. As you outsource payroll, you can rest assured that the process will go seamlessly, and your business will pay all due taxes on time. Outsourcing keeps things more organized because experts are handling the matter on your behalf.
Cons of Outsourcing Payroll
Loss of Confidentiality
Hiring a company for payroll management requires you to share your firm’s confidential data with them, including details of your employees and their salary data. These are confidential information crucial to your business, but the third-party service provider cannot operate the payroll processes unless they have this information at hand. They will have your information stored in their own database, which can, in a way, result in a lack of confidentiality.
However, this is not a big deal if you hire a reputed and reliable organization—they will keep your data secure and use it only for payroll management purposes. To avoid any confusion, make sure you get to know the terms and conditions of the company you’re outsourcing to.
Finding the Right Service Provider
Let’s be real. It’s not easy to find a great payroll management company that promises error-free work, gets things done on time, and offers affordable rates. So when you decide that you decide to outsource payroll for your business, this is probably the biggest challenge you'll face.
But not anymore. Accountants Now is here to help you out.
Accountants Now: Outsource Payroll Without Any Worries
Be it payroll, bookkeeping, filing taxes, or paying off IRS debt, Accountants Now is your one-stop solution. Led by a team of skilled accountants and tax experts, we combine our expertise with state-of-the-art technology to make sure every process runs smoothly and error-free.
Our payroll solution includes payroll tax filing, so you don’t need to pay anything extra. Moreover, when you hire us, you will have a dedicated team of 5 experts to assist you, answer any queries, and solve urgent issues. So, what are you waiting for? Book us today for payroll management and remove one headache from your to-do list.