What Do Successful Businesses Have in Common? Accurate and Efficient Payroll Processes

Many business owners have a great idea and an entrepreneurial spirit that will lead to the growth of an awesome company. However, many also lack any training or experience when it comes to managing payroll systems and making sure employees are compensated properly at the end of every pay period. When that is the case, getting help from payroll processing services is a must. Though there might be some extra payroll processing fees associated with doing that, business owners who want to give themselves the best chance at success will need to make the investment.
Though business owners might want to try to keep payroll systems in-house in an effort to avoid extra payroll processing fees and save money, outsourcing could actually save money. The average small business will spend around $2,600 a year on in-house payroll labor costs, but might not have experts on staff. Even if the cost of outsourcing is a little bit higher — though that is not always the case! — working with professionals will be quite worthwhile.
Any fees or costs associated with outsourcing payroll work can also be offset by the fact that professional services will be better able to accurately compete every aspect of the process, including paying taxes. Every year, according to the IRS, an estimated 40% of small businesses pay an average of nearly $850 in penalties because of payroll and bookkeeping errors. Many small businesses don’t have room in the budget for those kinds of extra expenses, so paying smaller payroll processing fees that avoid them can be easily justifiable.
Working with payroll processing companies will also allow businesses to upgrade to the most advanced and efficient systems. Though there is still a place for printed checks in some work environments, especially those that only have a handful of employees, switching to online timekeeping and payroll systems is a smart move. Doing so makes it easier for owners to stay organized and avoid mistakes and gives employees easier access to pay stubs, 401k information, vacation time available, and other numbers. For those without much experience making that kind of upgrade without help could prove to be impossible.
Entrepreneurs looking to start their own company might have no desire to add extra costs when they open for business. However, in today’s marketplace, payroll systems need to be a part of a business’ infrastructure. Without them, even the most innovative and hard-working owners could struggle to succeed in the long run.