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One of the biggest worries for business owners today is keeping enough working capital on hand to run their business on a day-to-day basis. ATS Accounting wants to make it easier for you.
Outsourcing your payroll can help you make things easier. Whether you are a small-sized business or an established enterprise, you will surely reap significant benefits from outsourcing the payroll process. As owners and managers of growing businesses, it is worth the effort to find the right service provider and outsource your payroll systems.
If you are doubtful about outsourcing your payroll, you might have a few questions like -
To answer these questions, we have outlined a few reasons how your business can reap benefits by outsourcing payroll.
In-house payroll management is a time-consuming process. Keeping track of business deductions, garnishments, salaries of new hires, full and final settlements on terminations, and paid time off as well as complying with the state and federal regulations are hectic tasks. You need to ensure that you input data accurately and double check for any keying errors. These tasks can take hours, thus affecting the productivity of the business. Outsourcing payroll allows you to concentrate on your core business.
Large businesses can afford to maintain comprehensive payroll departments. But, for small and medium businesses, having an in-house payroll department can be a money burner. If you are an owner of a small or medium business, then you don’t have to worry about your payroll process when you outsource it.
Professional payroll companies employ professionals who know payroll processing inside and out. This can help limit business risk and virtually eliminate costs associated with overpaying employees because of the difference between the employee’s time and the actual time record.
Government rules and regulations change annually. It is often difficult for the small business owners to keep up with these changes, worry about the latest version of the payroll software, and stay updated with the most recent tax tables. If you or your payroll department makes mistakes while complying with these regulations, it could result in costly fines and penalties.
Professionals working in payroll companies are trained in all aspects of the relevant laws and regulations. They are up-to-date with the latest jurisdiction reporting and taxation requirements, which means you never miss out on being compliant.
Produces More Time for Growth
Payroll is one of those critical functions that may not directly increase profits or contribute to your core activities in your business. Entrepreneurs are famous for taking on multiple responsibilities to save money, including handling the payroll. Regardless of the number of employees, payroll is a task that requires time and attention for details. The payroll process involves many factors like calculating payroll, printing documents, signing cheques, remitting taxes and returns, etc., that take a considerable amount of precious time each month.
Outsourcing this necessary function immediately frees up precious time for you and your business. You can eventually focus on the growth of your business and the customer service. A good payroll provider offers capabilities that go beyond what you can do on your own and provides expertise to ensure compliance with current rules and regulations.
Achieves a High Level of Accuracy
Outsourcing to payroll companies and accounting services is quite beneficial when it comes to generating accurate results. This is because the company employs staff that ensures better management of back office functions. The staff is up-to-date, passionate, and provide a smooth and efficient service to customers.
Gives Tax Benefits
Inappropriate payroll management can often lead to inaccurate tax filing which results in tax penalties. When you do payroll on your own, you may have a risk of inaccurate filing which can in turn affect your tax processing. Outsourcing your payroll processing services to payroll companies can save your company from these hassles and ensure accurate payroll processing with some additional tax benefits.
Avoids Reconciliation Worries
Bank reconciliations can be tedious, consuming a lot of effort and time. The process includes keeping track of all payments through the bank during the rolling out of paychecks. This can be avoided by entrusting payroll services to experienced payroll outsourcing companies.
Stay Informed With Up-to-date Accounting
The market keeps changing continuously due to technological advancement. Companies can avail of such progressive technology through systematic outsourced accounting services. All accounting and payroll-related information can be obtained regularly from payroll companies handling outsourced accounting services. Advanced software can help companies look at personalized reports that can often save a lot of time while making important financial decisions.
We are one of Canada’s leading payroll companies having licensed pros who work with all business owners whether they have a small, medium or large business.
So, ready to get started? Book a free consultation today to know more about outsourcing payroll and its impact on your business.