Outsourcing Non-Core Functions Such As Payroll
March 14, 2017
Non-core functions are classed as activities that are not chargeable to your customers, and which do not affect your competitiveness with other businesses. A prime example of a non-core function would be payroll.
While business consultants will undoubtedly recommend that all businesses outsource their payroll, do you know for sure that this will be advantageous to you and your company, no matter its size?
What are the benefits of outsourcing payroll?
- It allows you more time to focus on core aspects of your business
Payroll is one aspect of your business that while not directly affecting your sales figures, could be damaging to your business, if carried out inefficiently. It can also take up a lot of unnecessary time and detract the focus away from core aspects of your business. With the many and varied laws and regulations that business owners must comply with – such as those surrounding the hiring of new staff, unemployment compensation and workers’ compensation insurance, not to mention legal requirements such as tax reporting and remittance - keeping up to date with it all can be mind boggling and time consuming.
Outsourcing payroll means that your brain power, energy and time can be refocused on the core aspects of your business that do affect your sales figures.
- You will have access to more payroll technology and expertise
Hundreds of new federal and state laws and regulations are put into place every year, and understanding and keeping up with them all is tough. You could face costly penalties if you’re not able to comply with them all. A payroll expert will ensure that they are always staying on top of new laws and regulations as and when they are enacted, and there should be no risk of your business being non-compliant.
As far as technology is concerned, you’ll want to keep abreast of all the latest changes and developments in technology as your business grows, otherwise you’ll fall behind with employee records and reporting.
Your employees will also expect their employer to provide them with the latest technology so that they can access their payroll information online and receive direct deposits. Many employees are also wanting to use mobile apps to check their employment records, and without access to the latest technology trends, you simply won’t be able to keep your staff happy.
- Costs and risks are lowered
Your business could cut its costs and limit its risks by outsourcing payroll, especially when it can prevent discrepancies between yours and your employees time records; helping you to avoid overpaying your staff.
Late or incorrect filings to the IRS can be costly for any business, but with a professional and highly skilled payroll specialist assisting you, the chances of that happening are virtually zero.
It doesn’t matter what size your business is, or the size of your budget, outsourcing payroll can be affordable and will almost certainly help your business to grow and keep up with its competitors.