Six Reasons For Outsourcing Payroll
The vital role outsourcing plays in business growth cannot be downplayed. A lot of major players in the marketing industry have long taken advantage of these ‘outside expert services’ to streamline and boost the productivity of their business.
The strategic services of outsourcing companies have been utilized in times past, and if success stories are any indication, it is quite beneficial to hand out some core responsibilities to these outsourcing firms—and that includes payroll.
We, at Consultants-In-A-Box, will be exploring some of the reasons why you need to outsource payroll to an expert firm. But first things first.
What are Payroll Outsourcing Services?
Payroll outsourcing services, like Consultants-In-A-Box, are employed by companies to handle their payroll process in an efficient and specialized manner. As a payroll provider, these outsourcing companies bring their expertise and efficiency in procuring payroll to the parent company.
Why Do You Need A Payroll Outsourcing Service?
There are several beneficial reasons to hire the services of an expert payroll service. We’ll be looking at 6 of them.
Less Time Calculating The Payroll Of Every Worker.
An employee in charge of payroll will always have a long, rough day before or after payment day. He or she would have to constantly and accurately calculate the net salary of every worker in the organization.
They’d have to calculate and remove the taxes, include benefits such as child supports, pension, healthcare, transportation allowance, and other additions or deductions. And that’s just one person!
When you factor in the amount of time that he or she would complete the task, ensuring all your staff is accounted for, it’s going to take a huge slice of the week.
Contracting this specific task to an expert payroll outsourcing firm is beneficial for you in the long run.
Limit Common Payroll Mistakes.
When it comes to payroll and calculating workers’ paycheck, mistakes do occur, and this negatively impacts the business or the employees directly. When a worker’s work hours aren’t correctly inputted to calculate his gross salary, he or she would notice a decrease in their pay.
Also, when tax deductions are properly removed, a huge chunk of the worker’s salary is removed. This may breed resentment towards the company, and if they take legal actions against your company, they’d be right to do so.
To avoid mistakes like this, you need a reliable payroll outsourcing service to take the weight off your shoulder.
Professionals With Relevant Experience In Payroll.
When it comes to payroll, no one does it better than a professional company set up for just that purpose. They understand the many complexities of payroll processing and still deliver the very best. Some of their duties include:
- Submitting year-end and quarterly payroll taxes.
- Adjusting the correct tax deductions by updating W-9 forms.
- Handling healthcare, social security, and FICA deductions.
- Background knowledge of national regulations as regards with payroll deductions.
- Ensuring state and federal tax laws are strictly adhered to.
Security Of Payroll Data.
Hiring the services of professional payroll providers guarantees you of payroll data safety. Most companies still struggle with issues ranging from embezzlements, identity theft, and intentional tampering of records.
Hiring a payroll outsourcing company means your confidential records are safe and secured away from prying eyes inside your company.
Compliance With Government Laws.
When you’re managing several workers at once, having to track their allowance and deducting federal, state, as well as healthcare taxes can be really tasking, and mistakes may occur.
To remain on the side of the law, it is important to hire the services of a payroll provider to remit accurate taxes and returns to the government.
Generating Reports For Company Use.
After a payment period, the records containing the pay earned by employees, including tax, miscellaneous deductions are documented and kept for future use. When you’re making use of an in-house staff for this, mistakes may occur and negatively impact your business.
The services of seasoned payroll providers should be hired to accurately analyze and document these reports.
When with all this information at your fingertips, the need for an outsourcing payroll company arises. Consultants-In-A-Box, since our inception, has prided ourselves in delivering the best payroll service that your business needs at the moment. Contact us today to take advantage of our awesome packages.
Money-Saving Accounting Tasks That You Don’t Need to Outsource
Most small business owners fear the term ‘accounting’ and run from anything considered ‘bookkeeping.’ While outsourcing your accounting needs is beneficial to your company, it also costs money. The key here is limiting the amount of work you need to outsource with the right accounting tips.
How do you do that, exactly?
You take some of the easier responsibilities for yourself and leave the more difficult accounting tasks for the professionals. Don’t worry, the accounting tasks you take on won’t take any special skills and won’t be time-consuming.
They will, however, be money-saving and that’s what’s most important.
Today, we’re going to discuss five of the simplest and easiest-to-manage accounting tasks small business owners should learn to take care of themselves. With the right software and accounting tips, these tasks will be as easy as checking your social media.
1. Invoicing
Microsoft Excel is an amazing tool that can provide a wide range of benefits to any business -- including managing and recording invoices. Unfortunately, using Excel puts you at risk of constant data entry errors, wrong dates, incorrect amounts, and more.
Of course, this all leads to a delay in receiving payment from the client or customer, which is what no small business owner wants.
Avoiding this requires the right accounting software and accounting tips to help you not only automate your invoicing, but allow you to easily and quickly preview an invoice before being sent. This makes it much for manageable for any busy small business owner.
In addition to that, accounting software can help you change currency for each client, accept deposits up-front for work you just signed a contract for, receive notifications about overdue invoices, allowing the ability to duplicate past invoices for easy editing, and much more.
2. Accepting & Recording Payments
Getting the invoice to the client is essential, but making sure they have the resources to quickly and easily pay that invoice is just as important. It’ll put a smile on your face when you see clients and customers paying you in a timely manner.
The right accounting software helps you not only keep track of who paid you, but also how they paid, whether the payment was cleared, when it was sent, when it was paid, and just about anything else you’ll need to track when it comes to accepting and recording payments.
The right software also saves you time by giving you an all-in-one solution when depositing checks, handling payments that bounce, and even helping you with foreign currency exchange when dealing with customers overseas.
In terms of accepting payments, you can integrate an easy option built into the invoice. That way the client can pay that invoice the moment they receive it with little work on their end. You can set it up so the money is deposited directly into your business bank account.
In terms of recording everything, a majority of data is recorded automatically to make it easier on the business owner. It’ll keep everything under the same roof so you can easily manage future, current, past, and overdue invoices.
3. Expenses
When it comes to accounting tasks, managing income isn’t so bad when watching your business grow and receive payments. Unfortunately, things aren’t as fun when managing the money your business is losing -- but they’re just as crucial to the process.
When using a spreadsheet, tracking expenses is difficult and leaves your business prone to mistakes. With the right software and small business accounting tips, you can connect your business bank account directly to the software. That way all your expenses are automatically uploaded to the software every single day.
It’ll make keeping track of expenses a lot easier because you’ll only have to add in the cash expenses, which don’t happen as often in business. Simply snap a picture of the receipt, add in what it was for and how much, and save the entry. You can always label them to further organize, as well.
Accounting software can also help you manage tax deductibles, including meals, business travel, vehicle-related costs, home office expenses, and technology costs.
4. Sales Tax
Collecting sales tax helps cover tax costs for any small business owner, but most neglect the process of recording and keeping track of the sales tax collected over the past year. This leads to the sales tax being added into your income and used with your spending money.
Of course, a nightmare is bound to happen when you don’t have the funds to cover tax payments. To avoid this from happening, it’s important to manage sales tax collections and keep them separate from everything else you’re receiving.
You’ll always have access to your data and can easily manage how much you’ll owe in sales tax whenever you need to.
5. Financial Knowledge
When running a business, it’s essential you understand where your business stands financially at all times. You need to know how much cash flow you have, how much money is coming in, how much is leaving, and knowing what the future has in store for you.
Most business owners wait to take care of all these things at month’s end, but that leaves you prone to rushing and making mistakes. Having a software that keeps everything right in front of you throughout the month allows you to stay on top of where your business stands whenever and wherever.
Financial reports should be easy to run and easy to read, they shouldn’t add more frustration to your situation. When choosing a software that’s right for your company, take this into consideration to avoid making the wrong investment.
Once you start to turn these small business accounting tips into habits, you put your business in a much better position moving forward. You’ll have the confidence you need to grow your company and inspire your employees to do better every day.
