Outsourcing is the business of shifting tasks, operations, jobs or processes to an external contracted third party for an extended period. To reduce costs or improve efficiency, companies pay an outside organization to work on a project they could not otherwise do themselves.
As much as an accurate payroll is important to your business, it’s also among the most difficult and time-consuming functions to handle accurately. That’s why most companies are increasing productivity—and revenues—by moving to outsourced payroll services.
Picking the right outsourcing company is key to a successful partnership. BSO follows standards that guarantee a quality service and, at the same time, focus on their client’s overall requirements and projected results. Effectively managing payroll is critical to the success of your business. In BSO’s perspective the top 10 benefits of business outsourcing are:
1. Cost Savings
Businesses which believe they are saving money by handling their own payroll process are mistaken. Time is money and preparing payroll takes a lot of time.
You can observe this by simply adding up all the time your company spends calculating employee hours, deductions, paid time off, sick leave and taxes, plus printing, signing and distributing paychecks and generating payroll reports. Now multiply those hours by the wage you pay and compare it to the cost of outsourcing. Chances are you’ll be surprised at how much you can save by letting a BSO handle payroll for you.
- Time Management
No matter how many employees a business has, processing payroll demands a lot of time and attention to detail. That is time taken away from critical tasks like creating income and serving valued customers. Accurately handling payroll is time consuming and accuracy is important.
Time saved is money saved.
3. Progress to your Business
You hired your sales team to make a sale, right? And I bet they are constantly whining about the administrative load they carry with them everywhere, right? But, think about what might happen if you outsourced some of the administrative work? They would be happier, but they would also be able to focus their time on selling more; which, therefore helps grow your business.
4. Data will be More Secure
There are both internal and external threats to the security of your payroll data. Internal threats include employees who, with access to employees’ personal data, can engage in identify theft or otherwise interfere with records. External threats are even more risky: any security flaw opens the door to hackers who can steal your data. When you outsource payroll, your data is stored on highly-secure servers in addition to many backups and multiple server locations.
5. Avoid penalties
Rules and regulations are always changing, and small business owners can’t be expected to stay on top of these changes. Professional payroll providers, on the other hand, must stay current with rules, regulations, and changes in tax rates. Penalties for errors or late payroll tax filings can be very costly. Mistakes lead to audits and penalties.
An increasing number of smart businesses have either already outsourced their payroll services, or are actively considering doing so in the near future. Outsourcing payroll just makes sense—it can save you money, put the focus back onto what your business is all about, ensure compliance with government regulations and secure your data.