Any owner of a small business will tell you that finding ways to save money whenever possible without compromising your company’s standards is vital to finding success in today’s business world. One often overlooked place where a small business ends up spending far more money than it needs to is in how it conducts payroll, especially if you try to do it all on your own.
However, by working with the right experts for your payroll services, you can eliminate these extraneous costs while also regaining time that has been diverted away from your more important tasks.
1. Avoid (Literally) Costly Errors
Listen, everyone makes mistakes from time-to-time, especially when it comes to things like math, or data entry. There’s no shame in that. However, when it comes to payroll, these small mistakes can be, in the most literal sense, extremely costly.
Even the smallest error when it comes to payroll data, whether it be hours an employee worked, personal information like social security numbers, or mixing up sets of data, can not only throw off your entire payroll process, but could lead to situations like you overpaying, or even litigation and governmental fines and penalties.
However, with the right payroll services experts working with you, these errors can be avoided. This not only saves you money up front by preventing potential overspending, but also the time, headaches, and additional expenses brought by litigation and fines.
2. Tax Penalties
Approximately 40 to 45 percent of small businesses incur tax penalties each year. These penalties are simply extraneous costs that do nothing but cut into your budget. However, with the immense level of complexity and frequent changes made to tax code, it there’s no wonder that so many small businesses get something wrong along the way.
In fact, if you consider the fact that there are nearly 75,000 pages of the IRS tax code, and there are typically around 4,000 annual changes to the federal, state, and local tax codes, it’s remarkable that any small businesses manage to do everything correctly and avoid these penalties each year.
Unless you spend your time keeping up to date on all the tax code complexities and changes that happen in a given year, it seems likely that, at some point, you will make a mistake. Even if you do everything exactly as you have previously, you cannot be sure that things have not changed.
Instead, you should let the experts handling your payroll services, (who specialize in understanding and remaining current on this stuff already), handle these issues for you.
3. Saves You Time
As a small business owner, you surely already have more on your plate than it feels like you can handle at times. Between making decisions (both big and small), managing employees, trying to grow your business, and everything else that comes with making your dreams a reality, every additional task put in front of you becomes a burden and cuts into your time spent on the important stuff.
Why then, should you let payroll become such a chore?
Simply taking the time to sit down and process payroll is time that you could be spending elsewhere in order to assure your business’ success (not to mention the mental energy expended in doing this). Even if you are quite adept at processing payroll, using payroll services will allow you to take one thing off your already-full plate.
4. Employee Happiness
Some of the quickest ways for employees to become dissatisfied and unhappy with their job are payroll issues. If paychecks are late, or have errors on them, it can have a severely negative impact on your employees, who were counting on on being paid a certain way at the correct time.
Maintaining your employees’ happiness is extremely important. Firstly, it creates stronger company culture for your business. It will also help you save money, though. Happier employees are more likely to stay with the company, and lower turnover rates also mean reduced expenses related to new hires, such as recruiting and training. When employees are happier at work, it also generally leads to higher levels of engagement, better attendance, and greater productivity.
Working with payroll services experts makes you less likely to run into these situations that can lead to disgruntled employees. By keeping your employees happy, you not only improve the culture of your workplace, but can also save money on onboarding expenses, and improve profits through greater passion and productivity within your ranks.
5. Expertise and Experience
Not every industry is the same; that’s obvious. Each one comes with its own particular needs, complications, and issues. While this may seem like a challenge to some people, the right payroll experts will instead look at this as an opportunity to help grow your business.
These industry-specific needs could be looked at as a negative, but experienced payroll experts will be able to take that situation and find the best ways to efficiently use your money and save every dollar possible.
You won’t just be put into a box and have the same practices and routines applied to you as every other business. They will come up with solutions so uniquely crafted to your industry and your business specifically that you won’t even say they are thinking outside of the box because the box is nowhere in sight.
Find the Right Payroll Services For You
Here at Employers Resource, our PEO solution gives our clients access to a team of experienced payroll and HR experts that can help you with these issues. By working with our experts, not only could you see increased savings and profits, but also a greater amount of time to focus on actually running your business.
Whether it’s with our team of payroll experts or another, we highly recommend you find the payroll solution that best works for you and your small business. That way, you can stay focused on what you’re best at: growing your business, and will be able to sleep easy at night knowing your money is in good hands.