Payroll Companies and Your Business: Helpful or Hurtful?
As a business owner or manager, you may have heard a lot of great things about outsourced bookkeeping services, and how they can help you manage your time and money. This may be true in many ways, but is there a downside? By examining the pros and cons of hiring outside help, you will be able to make better decisions for your business in the future. Read on for some of the pros and cons of hiring outside accounting services for your payroll system,
Pro: Eliminating The W-2 Blues
Handling employee paperwork can be a chore and a half. It is often challenging for business owners to tackle this on their own. From issues with employee time and attendance to managing unemployment and workers’ comp, the payroll process can get pretty intense. Payroll services have the knack to cut this stress out of your tax season. Many outsourced bookkeeping services will also be able to guide you to the most up to date tax software on the market, which will help you keep all of your W-2s and employee paperwork streamlined in moving forward to the next tax season.
Pro: Savings on Time and Money
While outsourced bookkeeping services can get costly, in the long run, they are providing a service that will help you avoid making costly errors. The same is to be said for a payroll company saving you a considerable amount of time. For every employee, there is an employee pay period that comes with its own set of rules and costs. A good payroll service will save you time and money by calculating employee wages, and costs that it takes to get them paid.
Pro: Sense of Security
The system of paying your employees often involves some delicate procedures. If you are running a small business and doing your payroll on paper, you basically have all of your employee’s information out in the open. If you hire bookkeeping services or even seek the help of virtual assistant services, you protect that information under cyber lock and key. This can help provide a sense of security and peace of mind to you and your team.
Con: Accessing Company Data Can Become Difficult
While there are many upsides to hiring a payroll service, there are several issues that could be considered a slippery slope. The first example of this is that you might have some challenges in accessing the general information for your company. All of this information usually lives on the payroll company’s own server, so you may not be able to access it as readily as you would like.
Con: Higher Costs
Although the goal of a payroll company is to save you on funds in the long run, sometimes the costs add up. This depends on the size of your business, however. If your business is still in its infant stage, you may want to hold off on paying any accounting services. You don’t need to be spending that kind of money if your business is just getting off the ground. Research costs before signing on the dotted line.
Con: The Vendor Calls it Quits
This con is an all too likely scenario. These days, businesses come and go like the weather, and this can be quite true for payroll service companies. If the payroll company you choose is new to the game, you may want to look elsewhere. It’s a sad reality that not every business succeeds, but you don’t want your company to be one of them.
Although there are some great qualities of hiring a payroll service, there are also some warning signs to look out for. If you are considering making the switch, do so with some research under your belt. Taking your time to consider all the pros and cons is a great way to set a strong financial foundation for you and your employees.
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