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small business payroll

The Top 8 Benefits of Managed Payroll Services

June 9th, 2021 | 7 min. read

By CSI Accounting Staff

Is it worth it to outsource payroll? Clearly, doing it yourself can have some major downsides. Here are the top 8 benefits of managed payroll services, with an extra emphasis on the differences between local providers and national providers.

Blog - The Top 8 Benefits of Managed Payroll Services

The Top 8 Benefits

1. Information is easier to understand

Written communication should be simple to understand. This includes transparent billing, online reporting capabilities, and digital resources. Small firms like CSI Accounting & Payroll handle the details that might slip through the cracks but make all the difference when tax season comes around. That includes quarterly and year-end local, state and federal tax filings, new hire reporting, and more.

CSI Accounting & Payroll also provides resources on our blog to help you break down costs and understand how to save more.

2. Excellent customer service

Having trouble understanding any written communication? You're just a meeting, email, phone call, or text away from great advice and customer service! As a small business owner, you care about your customers - and you know that you care more than a corporation would. We feel the same way.

When you work with CSI Accounting & Payroll, you know that you'll have a small, dedicated team of support. Better yet, you won't need to worry about explaining your unique situation to a new point of contact all of the time. 

Plus, for the Twin Cities metro businesses, having local payroll experts by your side to personally set up your account helps eliminate any errors from the start of the relationship. Any questions or concerns can be addressed immediately, and you have a partner vested in your success as your business grows.


3. Avoid penalties

If you are concerned about compliance or if your small business has been fined in the past for payroll mistakes, it may be time to hire professional payroll services. Many small businesses find it nearly impossible to stay on top of the numerous tax code changes that can lead to errors, but payroll services are designed to help you stay in compliance with all of the policies and regulations involved with payroll, taxes, and IRS reporting. 

Outsourced payroll professionals are usually less likely to make errors than an in-house employee, as they’re trained specifically in compliance issues. They also:

  • make sure your employees are paid on time
  • notify you immediately if an issue arises
  • protect your business from penalties for late filing or inaccurate information
  • let you see up-to-date information regarding payments, PTO, and deductions through secure online portals

4. Cost-effective

Payroll is one of the largest expenses for small businesses. If it isn’t done correctly, it can also be your biggest struggle. Having a professional payroll service provider on your team helps alleviate the stress of staying up-to-date on every minor change to laws and regulations in order to avoid penalties.

You can save money by outsourcing payroll if you aren’t confident in your bookkeeping skills or simply can't conduct payroll in-house. Wondering if it’s time to outsource payroll? We guarantee payroll tax compliance and handle the details, including new hire reporting, quarterly and year-end local, state, and federal tax filings, and more.

Not to mention, the big names in the financial game will make you pay a "subscription fee" for software updates each year that don't offer many changes at all - and you're wasting your money if you don't know how to use it to its full extent! It’s easier, friendlier, and probably not as expensive as you think to use a local accounting and payroll firm.

5. Saves time

Running a small business is difficult enough without piling on administrative tasks, such as payroll. Like tax preparation, the payroll process can be complicated and time-consuming. Many small business owners find it a better use of their time to focus on activities related to the main goals of the business, and that's when outsourcing payroll becomes an ideal option.

You might even consider bundling financial services. Bundling payroll services along with your accounting and bookkeeping streamlines the process, keeps expenses down, and saves you the time of working with multiple vendors.

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6. Expert guidance

When you make the decision to hire a payroll service provider, it means you're ready to have a team of payroll experts assist you along the way while you focus on running and growing your business. However, not all payroll providers are made equal. CSI Accounting & Payroll has a reputation for providing top-tier service and advice from our highly experienced professionals.

Don't believe us? You can read our 100+ 5-star Google reviews here.

7. Local knowledge from local providers

National providers can lack a personal touch, and small businesses can feel like they're put on the back burner. Finding a local payroll provider is crucial to the success of your small business.

Local payroll services, such as CSI Accounting & Payroll, focus on small businesses because we understand your challenges at a personal level. Local firms typically assign one point of contact to clients and have low employee turnover rates. Like national firms, they can also complete your payroll from start to finish, use secure, cloud-based portals, and provide a personalized approach.

With ties to the business community, smaller payroll firms know the local banks and other financial institutions, have experience with local tax laws and the business climate, and can handle local regulations that a national provider may charge you extra for.

8. Combined services

Local firms like CSI Accounting & Payroll tend to offer accounting services as well. If your business needs monthly accounting and year-end tax preparation in addition to payroll services, sticking with a local accounting and payroll firm allows you to combine services under one roof. That means time is saved, there are fewer points of contact than if you were working with multiple companies, and there are bottom-line savings due to bundling discounts.

With fewer worries about the rules and regulations regarding payroll, accounting, and taxes, you’re able to focus on the operational side of your business, not the back-office paperwork.

Have questions about payroll?

If you have more questions, check out some other payroll topics on our blog! Not to mention, our payroll specialists are always available to help our clients with any questions that may come up. This is part of our highly praised interactive payroll program. Click the button below to see if we are a good fit for each other. We hope to hear from you!


CSI Accounting Staff

This article was composed by a member of our staff who interviewed our experts to get the facts straight. Any uncited information found here came straight from a knowledgeable accountant or payroll specialist.