CSI Accounting & Payroll Blog

Why a Payroll Service is a Great Option for Small Business

Written by CSI Accounting Staff | Mar 30, 2022 6:29:00 PM

Aren't you tired? Running a small business usually means that you're wearing more hats than the average person. When you find yourself putting in extra time to work through payroll, payroll taxes, and all associated add-on features, it can feel like there aren't enough hours in a day.

Outsourcing payroll is often one of the first things business owners do to get back on track. You may even be starting your business and want to get payroll handed off to someone else right away.

There comes a time for every small business when outsourcing certain tasks becomes the right decision. However, coming to that conclusion is often difficult for owners who are used to taking on everything themselves. In CSI's more than 50 years of working with small businesses, we've seen time and time again that once an owner outsources a service like payroll, they never want to bring it back in-house again.

Learn more about why outsourcing payroll is a great benefit for small businesses, as well as how to choose the best payroll service for you.

Expert Guidance

When you make the decision to hire a payroll service provider, that means you're ready to have a team of payroll experts assist you along the way.

What Makes a Payroll Specialist an Expert?

An expert payroll specialist should be learning more about taxes and regulatory requirements at webinars and conferences since laws are always changing. They should also show you how to get the answers to your questions. A professional should be willing to help you learn about what you can do yourself, but some national payroll providers gatekeep information to keep you reliant on their services.

More than anything, a payroll specialist becomes an expert through experience. When you process your own payroll, you're not focused on it more than up to a few times per month, depending on how much you have to do and what your pay periods are. A specialist who runs payroll for several small businesses does it all day, every day. Not to mention, they retain knowledge of quarterly filings and W-2 preparations since these are done in bulk.

Why Should I Work With an Expert?

When you have expert guidance on your side, you can remain focused on growing your business instead of worrying about payroll responsibilities. That's a lot of time added back into your already-cramped schedule.

Consider what your time is worth; it's probably more valuable elsewhere. If you generate a certain amount of revenue for your company by doing what you do best, chances are you're better off doing those tasks than running payroll.

Protection

Payroll service providers not only take care of making sure your employees are paid on time, but they also protect your business from penalties for late filing or inaccurate information. Most local payroll service providers have service guarantees; if you incur penalties and interest because of their error, the payroll service provider will pay them. Payroll automation, when set up correctly, can help prevent human error.

You can also see your up-to-date information regarding payments, PTO, and deductions through your secure online portal. Not to mention, should an issue arise, your provider has eyes on your payroll and can notify you immediately.

Why a Payroll Service is a Great Option for Small Business

In addition to expert guidance and protection, hiring out a payroll service allows you to:

  • Select services based on your needs. Don't pay for more than you need!
  • Reduce your need to manage the work in-house. Hiring your own payroll specialist will cost you their salary, benefits, training, and retention.
  • Quit worrying about payroll processing. This includes maintaining employee data for tax purposes.
  • Gain free time. This allows you to focus on other areas of your business.
  • Lift your concerns of fines or compliance with laws. See the points about protection above.

Bundle Accounting & Payroll

If you currently aren't working with an accountant or are unsatisfied with the level of service you're receiving, now might be the time to bundle the services with one vendor. Combining payroll with bookkeeping and accounting with one firm:

  • Streamlines the process. Whatever is done in payroll is part of your accounting.
  • Adds value to your operation. If you're not currently receiving the hands-on advice of a monthly accountant, you should be!
  • Saves you time. The time that would otherwise be spent as a communication bridge between your accountant and payroll specialist is now free.
  • Keeps expenses down. CSI offers a discount for bundling our accounting and payroll services! Signing on for both services will save you $105 per month. That’s a nice chunk of change.

How to Choose a Payroll Service

To determine the best payroll service provider for you, analyze each on the following factors:

  • Services provided. Payroll is a very customizable service, and a provider can offer additional services as well, such as accounting. Read about CSI's services here.
  • Cost. While this isn't equal to value, cost and performance should be clear so you can evaluate the service yourself. Read about what a payroll service costs here.
  • Consistent point of contact. You should have a dedicated specialist from a service with low employee turnover. Nobody wants to wait in a phone queue or to have to explain their payroll situation to a new representative every couple of months.
  • Ease of communication. You should be able to communicate with your specialist as much as you want.
  • Process. Onboarding with a payroll service should be simple. If you're feeling overwhelmed right away, that's a sign that the customer service may not be on par with what you need.
  • Online reporting capabilities. Ease of use when reporting things like worked hours and PTO is a major plus.
  • Reputation and reviews. A good quality payroll provider should have its client reviews front and center.
  • Added value to your business. Your time put into generating revenue for your business is more valuable than running payroll. Find a service that will allow you to take your hands off of the wheel (while still staying informed) and make the most out of it!

If you're looking for a payroll service provider, let's have a conversation to see if CSI Accounting & Payroll is the right fit for your small business. Click the image below for a free payroll proposal!

Not ready for a quote? Read more about if you're a good fit to work with CSI Accounting & Payroll here.