As a small-business owner you have to try to keep costs down in order to grow your business. In order to keep costs down, you should consider hiring a payroll service, like one from Waggoner Frutiger & Daub CPA's. These services will keep costs lower than if you try to handle your payroll yourself.
Hiring an outside payroll service lowers your employment costs. If you were to hire an in-house employee to handle payroll for you, that employee may not stick around. If you have a hard time keeping the position filled, you may waste countless hours in pay just training a new employee. With an outside payroll service, someone will always be there to process your payroll.
Hiring a payroll service also saves you money over an in-house employee because you're only paying for the services you need. You don't have to pay the payroll agency health benefits, sick time or vacation time. In order to see how much outsourcing payroll could save you, calculate how much it would cost to hire an employee for payroll compared to a payroll service.
Taxes And Penalties
If you make mistakes doing your own payroll, you could be faced with costly penalties. You can be penalized for failing to deposit your payroll on time, failure to file your payroll taxes and failure to pay your payroll taxes. These penalties can quickly add up. When you use an outside payroll service, they often have guarantees to protect you come tax time.
If you choose to take care of your own payroll, your business may require newer computers or different software. These items can quickly add up and become extremely costly for your business. Payroll services are equipped specifically to handle everything from payroll changes to an influx of new employees. This means if you hire a seasonal staff, you don't have to go out and spend a bunch of money on equipment that may not see the light of day the rest of the year.
Focus On Money Generating Activities
If you're holed up in an office dealing with payroll, you could be missing out on a lot of opportunities for your business. You could be designing a new product or be working on a new marketing campaign to further your business. To see how much money you could save, calculate how much your time is worth compared to how much it would cost to have an outside service handle your payroll. As a business owner your time is valuable, so it only makes sense to try to conserve as much of it for yourself as possible.