For small business owners there comes the extra burden of dealing with all the ‘back office’ stuff. From paperwork to invoices, stock control and payroll, it can quickly mount up becoming a time sapping, resource consuming monster! But is outsourcing some of these jobs a good idea for the small business and can it help to make you more efficient?
For any business considering outsourcing it is often their payroll that comes up for consideration first. Payroll systems these days rely on complex software programs to calculate payable hours, salaries, deductions and bonuses, it is therefore one of the easiest ‘back office’ tasks to outsource to an external company. However there are pros and cons to this and they should be weighed up first before any decision is made about outsourcing.
The pros for outsourcing your payroll for instance, add up to the following:
- There are significant cost savings to be made by outsourcing, most notably in hiring staff to manage it for you, investing in the necessary software and equipment and in IT systems as well as IT support.
- Time is a valuable resource to the small business owner so outsourcing elements like the payroll will free up valuable time for other tasks.
- For businesses who experience strong growth and expansion, outsourcing the payroll means they will already have in place systems to cope with an increased workforce and payroll. This will give greater flexibility when it comes to expanding a business.
- One of the key benefits to outsourcing is knowing just how much the service will cost. The cost of keeping your payroll in-house can be difficult to manage and many business owners find it impossible to put a figure on it.
- For many there is one reason only to outsource to companies like Calgary payroll firm Payweb and that is to save money. Because outsourcing is typically cheaper than running it in-house businesses can free up some much needed capital to reinvest elsewhere.
- Finally outsourcing payroll services means your payroll will be handled efficiently with the latest software and by professionals who will ensure it is produced correctly.
So what about the cons?
Actually these are few and far between but they still need to be considered. Two key areas of concern include the ability to access employees records relating to pay and taxes and allowing third parties access to personal and confidential employee information.
Because the pros do far outweigh the cons outsourcing is something small businesses should consider to help them work smarter and in a way which will allow them to free up time and money.
Written by Georgina Clatworthy, a freelance writer writing on subjects relating to business, marketing and technology. Although I am not connected to the company, I can fully recommend employing the services of Payweb, an experienced payroll outsourcing company.