As the owner of a growing business, you may find that it’s becoming more difficult to handle your own payroll. Is it sustainable to keep “DIY-ing” for now, or should you think about outsourcing? Let’s talk about it.
At CSI Accounting & Payroll, we’ve provided small business payroll services for decades. That means we’ve heard doubts from thousands of prospective clients who wanted to know:
- When do most small business owners outsource their payroll?
- What are the signs that I need to outsource?
- What are the benefits of outsourcing payroll?
When Most Businesses Outsource Payroll
Do most small businesses start off handling their payroll in-house? Not really! Some small business structures (such as Sole Proprietorships with no employees) don’t need payroll. Outsourcing payroll wouldn’t even be an option until an employee is hired or the structure changes.
When a business does need payroll, many owners never want to touch it, so they outsource immediately. Others may feel comfortable handling it themselves if they have payroll experience.
However, for most, with payroll services being affordable and taking so much off their plate, outsourcing as soon as payroll is required is a no-brainer.
Next, I’ll address the signs that you need to outsource.
4 Signs You Need to Outsource Payroll
How do you know if you need to outsource payroll? Here are the four signs:
- You’re being notified of errors. This can be from taxing authorities, other agencies, employees, or your payroll software. See 9 examples of red flags here.
- You’re missing any filing or payment deadlines.
- You’re forgetting to process payroll.
- You’re spending too much time on payroll. It’s objectively a better deal to outsource if this formula is true: The value per hour of your time * The number of hours spent on payroll > The cost of a payroll service
Benefits Gained by Outsourcing
When you outsource, you gain these benefits:
- Save time.
- Save money.
- Stay compliant.
- Achieve peace of mind.
- Leverage their supplementary services.
One word of caution: Be sure you’re using a payroll service, not just a SaaS (software as a service). Big-name payroll “services” often just lease you the software and provide no support. They will not provide the benefits listed above.
Get Payroll off Your Plate!
Now that you know when small businesses outsource their payroll, the four signs that you need to outsource, and the benefits you can get from it, are you ready to check out payroll services?
If so, please consider CSI Accounting & Payroll! To see if we can be a good fit for your business, click the button below for a free consultation:
Not ready to talk? That’s okay! First, learn more about what it’s like to work with us by clicking the image below:
