- June 10, 2020
- Posted by: Smith & Smith
- Category: Payroll Services
Payroll is a critical part of any business operation. Although time-consuming, efficient payroll management should be a top priority for every employer—large or small. Every business owner recognizes the pressures involved with payroll processing, payroll tax filings and related tasks. While some businesses opt to manage payroll functions in-house through manual bookkeeping, successful businesses across the globe are opting to outsource this function to professionals.
What is Payroll Outsourcing?
The concept of payroll outsourcing is a simple one – a business hires an external team or individual professional to manage the payroll functions for them, with the intent of saving time, money and effort. Outsourced payroll solutions provide increased accuracy when compared to in-house payroll management as it gets prepared, analyzed, and evaluated by qualified professionals.
What are the Benefits of Outsourcing Payroll Management?
Having your payroll process outsourced to a qualified service provider can take a huge burden off your shoulders by providing the following benefits –
- Saves Time and Enhances Business Productivity
Performing all payroll functions in-house is a lengthy process that utilizes a lot of time, manpower and resources; often leading to loss of productivity on other fronts. Further, time spent on accurate payroll management, involving huge amounts of data, translates to considerable time taken away from the core tasks of the business.
Outsourcing payroll gives business owners a lot of time to focus on the other important tasks for the growth and expansion of the business.
- Reduces Costs
By outsourcing payroll processing to a third-party, you can ensure that everything from handling payroll inquiries to calculating payroll taxes and statutory filings is managed seamlessly in a cost-efficient manner. If you look at the total time spent on in-house payroll management each pay period compared to the costs of outsourcing, you will see a great deal of cost savings when you take those tasks off your internal list.
- Ensures Compliance to Regulations
Many small business owners do not have the required knowledge and time to deal with complex government regulations associated with payroll and taxes. With a number of complex rules and taxes to consider, it becomes difficult to process salaries and reimbursements of each and every employee in the organization. These mistakes can quickly evolve into audit irregularities and penalties that every business would want to avoid.
Professional payroll service providers, on the other hand, have the required expertise and are always up to date with the latest compliance regulations, and tax rate changes.
- Enhances Data Security
There are a number of risks associated with in-house payroll management, such as the safety of server/network, embezzlement, identity theft, and more. Further, there is always a risk of data mishandling when an increasing number of employees are working from home in current times.
Professional outsourced payroll service providers ensure to protect and store all your important data on highly secure cloud-based servers and leverage the latest encryption technology to keep your information safe.
Payroll is a critical business function that needs to be executed perfectly in order to avoid any harm to the business. A qualified and professional payroll service provider specializes in multiple functions of payroll management, including compliance, complexities of regulations, taxes, and human resources.
Now that you know the importance of payroll management and how you can benefit by outsourcing it, you should look for experienced and trusted payroll management services provider. Just like our team at Smith & Smith CPAs. We will help secure your business with tax planning, payroll management and other financial planning services. Contact us for the best payroll management services in Arlington, TX today!