It’s hard to understand how business owners resort to doing their payroll manually when in fact, they’ve got numerous other options in outsourcing. But the most unacceptable reason for not trying it is because of lack of knowledge. So now, I’ll do you a favor and give you the information you need to know. After that, you’ll have no more excuses.
Outsourcing is useful for businesses which don’t have enough manpower, time or expertise to work on their payroll. In small businesses, only one shoulders both bookkeeping and payroll functions. They think that it costs them less but the truth is, a small business can save more by outsourcing because there’s no need for a full-time employee to do the task. This means outsourcing payroll effectively saves time and money as it automates the work better compared to tracking and calculating employee pay by hand or using spreadsheets, you can hire a bookkeeper, use software, or work with a professional employer organization (PEO).
Outsourcing Payroll with Payroll Software
Aside from the Payroll software tool, there are also companies who offer full-service solutions with customer support. Some of the newer payroll software is advanced and flexible to meet specific needs. Making it simpler because you only need to input the payroll data and the software will do the rest.
Don’t get it wrong. You’ll still have to do minimal things with payroll software such as timekeeping and verifying data, but the software will process your data and calculate payroll for you. Meanwhile, some payroll software suppliers who have features that will allow employees to manage their own payroll needs, request time off, and even download year-end tax documents themselves.
Who needs Payroll Software?
Payroll software is best for companies with an HR employee who wants in-house payroll processing. It will provide some automation in payroll processing and filing payroll taxes, but it still a need to be rechecked and approved. Also, it’s cheaper compared to other options such as hiring a full-service provider or PEO.
Advantages of Using Payroll Software
Payroll software will provide you with the tools you need to process payroll accurately and on time. So, you don’t have to search for tax rates anymore as they’re already integrated into the system. Many of the lower cost providers can also give you the option to pay using direct deposit with no additional charge.
Disadvantages of Using Payroll Software
While easier than calculating payroll manually, using a Payroll Software isn’t really considered outsourcing as it is not about having someone else do the work for you entirely. This means you’re still in charge with logging in to enter hours worked (or sync and approve them if you’re using a time and attendance software), update employee data (pay rates), and print reports.
For business owners anywhere, the key to success is to focus your time, resources, and experience on the revenue-generating functions of your business—and limit risk and expenses as this is what will allow you to focus on the long-term growth of your business.