As a staffing firm owner, non-core functions like payroll are part of doing business. Although processing payroll is a necessary activity, you’re better off outsourcing it. What benefits come from outsourcing your payroll? Consider these.
-
Reduce Costs and Risks
Start-up costs for payroll are relatively low because you pay for services as needed. Outsourcing provides a more accurate employee time and attendance record. Penalties and late fees for violating reporting and other requirements are avoided. All are huge money savers.
-
Focus on Core Business
Outsourcing non-income-producing functions such as payroll allows you to focus on growing your company. Finance and accounting probably isn’t one of your strengths. You don’t have time to learn and comply with every state and federal law and regulation. Tax reporting and remittance, technical wage and hour laws, new-hire reporting requirements, and unemployment and worker’s compensation insurance are all complex, time-consuming issues. You’ll end up making poor business decisions that can lose money and bankrupt your staffing firm if you take on the responsibility yourself. Outsourcing allows you to focus on what you do best. You can recruit more employees and match them with more client businesses to increase your bottom line.
-
Utilize Technology
Outsourcing gives you access to technology and expertise to accurately process payroll. The complexities of and changes in federal, state, and local laws make it challenging for a small business owner to stay current on compliance. As your business grows, so will your employee records and reporting requirements. Workers want direct deposit for paychecks and online access to their payment information. Technology provided through outsourcing allows you to keep everything organized, completed, and compliant.
-
Free Internal Resources
Human and capital resources can be freed up for money-making purposes by outsourcing payroll. Even a staffing firm with strong technology and a skilled accounting staff can have difficulty preparing a monthly report on time or efficiently reconciling an invoicing issue. Many staff members are overloaded with other work and unable to face the demands of a highly competitive staffing agency. You need to know where you’re at financially at any given time to efficiently make decisions to grow your business. Outsourcing will help you do so.
-
Utilize Experts
Having experts handle payroll helps your business run smoothly, and gives you the opportunity to expand. Paperwork is accurately filled out and processed. Employees are paid on time. Taxes are withheld and paid. Payroll issues are efficiently resolved. You won’t be dealing with IRS issues or other headaches. Having a team of professionals gives you peace of mind to focus on expanding your business and increasing your bottom line.
Outsourcing payroll frees up time and money for you to invest in growing your staffing firm. For help with all your outsourcing needs, reach out to Innovative Employee Solutions today!
