With unpredictable economic conditions, businesses are always looking for ways to streamline their existing operations and eliminate processes and functions that add no value to their business offerings. One way to do this is by outsourcing the non-essential elements of the business to a professional company.
Take payroll for example.
It is a critical function for any business as the salaries of the employees depend on it. Without an effective payroll function, a business is likely to experience disengaged and de-motivated employees.
While there are several organizations that continue to carry payroll function in-house, majority of them are choosing to outsource.
But is it really worth it?
Here’s how you can leverage performance and efficiency by outsourcing your payroll function:
You Won’t Have to Setup Any Major Infrastructure
It is not easy for startups and small businesses to setup an in-house payroll management system. It requires extensive hardware, network capabilities, cloud technology and software—all of which require a large investment and constant maintenance expenses.
This is really difficult for small business keeping in view the budgetary constraints and the time required to set them up. By outsourcing, you will save yourself the hassle building an infrastructure from scratch. You will also have a team of professionals working for your business without actually having in-house employees.
You Won’t have to Hire Any Additional Staff
Maintaining an in-house payroll function means recruiting and training new employees. This can prove to be very costly. When your business grows, you will also have problems with scalability, finding yourself short-handed and without adequate resources.
By opting for our payroll management services, you will save all these costs and won’t have to worry about being short on staff for maintaining your ever-growing payroll function.
You Won’t face any Security Threats
Around 27 percent of small businesses have to deal with payroll fraud. It is that common. Payroll management often proves to be nightmare for small businesses, because they do not have dedicated infrastructure or the security measures that could prevent these types of frauds.
Businesses often report cases of financial embezzlements, frauds and payroll manipulations within their companies. Therefore, it is best to let experts handle the payroll processing.
We have a dedicated infrastructure, safety measures and storage facilities; we will ensure that you payroll data is secure and your processes are free fraud.
You’ll Save Time
As an entrepreneur, you must know how important your time is. If you are distracted with the backend and non-value adding processes, your businesses won’t go far when it comes to developing core competencies.
Never underestimate how much time and resources an in-house payroll function can drain from your business. According to an estimate, a payroll function costs a business around 235 hours of productivity when compared to business that did outsource payroll.
As a small business, you should be using this time to work in developing your core competencies, which will ultimately ensure the long term survival of your business. Backend processes, such as payroll, are nothing but distractions that should be left to the experts.
You’ll Save Money
According to a study conducted by PwC, businesses are able to save 35 percent of costs by outsourcing their payroll function. All businesses are looking to cut down their operational costs somehow, and 35% is a big number.
As already mentioned, you won’t have to make an in-house infrastructure, won’t have to hire full-time employees (entitled to basic salary, perks and paid leaves) and worry about fraud. You will have an efficient payroll function which will help you save money in the end.
Reach out to us today to find out how we can help your business manage your payroll function.
Our solutions will help you avoid all pitfalls related to payroll management. We are a payroll service that can provide the kind of insight and expertise that a business owner cannot by attempting payroll in-house. WSC Business Solutions offers various small business accounting solutions, including basic and comprehensive bookkeeping services in Houston, Texas.