No matter how big or small a company is, every business handles payroll services in one way or another.
Larger companies typically hire accountants to take care of their employee payroll, but many smaller businesses still try to save money by doing their own payroll.
Considering the important benefits of hiring accounting firms to process employee payroll, these smaller businesses trying to save a few dollars doing it on their own should reconsider for the following reasons:
- Payroll And Tax Rules and Regulations - The hard part of performing payroll services are not putting in the data, although that is challenging on its own; it is keeping up with tax rules and payroll and benefits regulations. Accountants are well schooled in these areas so they can keep their client companies compliant regarding employee taxes and any benefits-related calculations.
- Protection Against Fees and Fines - Accounting firms prevent fines and fees due to late or incorrectly submitted taxes, misunderstanding of tax laws, and audits that can result when unexpected red flags attract attention.
- Compliance Maintenance - Whether speaking of industry compliance or federal compliance, keeping employee and business information safe requires setting up secure data handling policies. For many smaller businesses, it is easier and less risky to hire professional accountants whose entire businesses revolve around compliance maintenance rather than risk mistakes that could lead to errors, liabilities, and fines.
- Recruitment and Business Growth - Whether a small business is growing or condensing, having separate payroll services available to handle the addition or removal of employees is less risky and more reliable than handling that task in-house. Accounting firms can make these changes more quickly and smoothly, eliminating any wait to get new employees fully added to the company’s payroll and benefits records.
- Time Management - Given all of the knowledge and effort involved in performing payroll service accurately and securely, hiring accountants ends up saving countless hours that can be better put to use doing actual work for the business. Considering that time management issues are notably one of the biggest challenges that owners of small businesses face, taking payroll processing out of the equation can help considerably.
Small businesses running on tight budgets must look past the professional fees paid to an accounting firm to fully appreciate the benefits they will gain.
By avoiding tax penalties and fees, saving many hours each week on keeping up with in-house payroll services, and having skilled professionals to handle this essential service for them, small business owners will gain much more in return than they will spend.
Accountants are outsourced professionals that every business needs to be more profitable.