Payrolis a headache, plain and simple.
Even if you’re experienced and meticulous, it’s a major time suck. As a business owner, you should be spending your day targeting new leads and expanding sales – not printing out W2s for your employees and wondering if the numbers will all add up.
Plus, when you consider the stiff penalties for mistakes, payroll can quickly turn from a weekly annoyance into a major calamity. Don’t think it can happen to you? Think again.
The IRS reports that one in every three employers has been charged for a payroll mistake – with total penalties reaching into the billions of dollars.
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And when you consider the constantly evolving nature of tax and government regulations, it’s easy to make a mistake that can grossly impact your bottom line.
You’re an entrepreneur. And a talented one at that.
But that “do-it-yourself” instinct that inspired you to start a business in the first place may be the very same thing that’s holding you back. You have to recognize that you can’t do everything yourself – and payroll is one of those activities that small business owners hang onto for far too long.
In fact, according to a payroll study conducted by Actionable Research, a market research and insight firm, almost 75% of CPAs serving small businesses did not think their clients had the expertise required to handle payroll processing. What’s more is that 68% went on to suggest that their clients’ should instead focus on the other demands of running a business.
Handling payroll processing yourself isn’t saving you any time. And when take into account how you value your own time, it’s not saving you money either. Imagine afternoons spent on payroll spent on growing revenue instead.
That said, you may still be asking yourself: “What do I gain from outsourcing payroll? Is it really worth the time and work involved to research payroll services? And will the benefits outweigh all that effort?”
If you’re thinking about outsourcing payroll, you’re on the right track.
But you also know a big system isn’t for you. As a small business owner, your best-case scenario might be to manage timesheets in-house through an online time reporting system and simply send them to a payroll services provider.
How can you benefit from this approach?
An online time reporting system will let your employees clock in from any cell phone, landline or web browser – so you can see who’s working in real time. You can then generate detailed, up-to-the-minute reports, while also combating employee time fraud.
When paired with a trusted payroll provider, your company can enjoy a variety of long-term advantages from online time reporting, including:
#1: It Frees You Up to Focus on Your Core Business
Tracking timesheets and processing payroll are both critical functions. But they’re also non-core functions, meaning they don’t directly increase sales and they’re not a source for profits.
When you handle them both yourself, it can sap time and attention away from those core, profit-generating functions, like sales and marketing. Those are you things that need your unique input. Payroll is not.
But when you upgrade to an online time tracking system and outsource payroll, you can free up your time and resources to focus on your core business activities. The ones that will grow your business.
#2: It Reduces Your Risk of Non-Compliance
Employment taxes. New hire reporting. Wage and hour laws. Overtime requirements. Unemployment compensation. Workers’ compensation. The Affordable Care Act.
And the list goes on.
Timekeeping and payroll are a hassle because there are SO MANY federal, state and local laws you have to comply with – and they’re always changing. It takes considerable effort to stay up to date, manage all the details and ensure you’re in compliance at all times.
What’s worse is that it takes just one little misstep to land you in legal hot water. And dealing with an unexpected notice or fine from the IRS can mean you’re spending the next week digging into your files to determine if you were really in the wrong. It can mean putting the rest of your business on pause.
But when you work with professional service providers for time tracking and payroll, you can minimize your compliance risk and boost your productivity in the process.
#3: It Helps You Leverage Technology to Grow Your Business
Your business is growing. That’s the good news. The bad news is that if you’re not taking advantage of technology and automation to operate more efficiently, it will impact your bottom line. You’ll have trouble trying to scale.
As you hire new employees, you’ll have more and more records that need to be reported and maintained. When you don’t have the right technology in place to help you do this, it can become a huge obstacle to growth.
In addition, your people expect you to be up to date with technology. They went to be able to complete their timesheets from their smartphone. They want direct deposit. And they want easy access to their payroll information online. If you don’t deliver, it can put you at a competitive disadvantage.
#4: It Keeps Employees Honest
Payroll fraud, including timesheet falsification, is expensive – and pervasive.
In fact, according to the Association of Certified Fraud Examiners, it’s the number one source of accounting fraud and employee theft, and it happens to 27% of all businesses. That’s nearly one in three.
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However, you can combat it with an accurate time and attendance recordkeeping system. With a proven system in place, you’ll know exactly when employees arrive and leave work – discouraging fraud and protecting your bottom line in the process.
#5: Enhanced Security and Peace of Mind
Ever wonder how safe and secure your timesheets and payroll data are on your network or company servers?
Cloud-based time tracking software and an experienced payroll service can help provide secure systems for handling confidential employee information (including Social Security numbers and bank account information). Security features include redundant backup systems, numerous server locations and state-of-the-art data protection software.
You want to position your company for future growth. But you can’t do it if you’re relying on yesterday’s systems to manage time tracking and payroll processing.
Instead, upgrade to online timesheets and outsource payroll to an expert provider. Then you can breathe a little easier…and re-focus your time and attention on growing your business.
