Pros and Cons of Outsourcing Payroll

If you’ve been spending hours and hours each month calculating wages, sorting hours, and cutting checks, then hiring a third-party business to handle your payroll may be a good business solution for you. We know that there are many things to consider before you decide to outsource your payroll services with Warren Accounting Group, so we’ve put together a list of pros and cons to help you decide if outsourcing your payroll is right for you.

Pros

When you outsource your payroll, you are able to run your business more efficiently. The time-consuming task of tracking PTO, taxes, and benefits can lead to hours upon hours spent on handling all the aspects of preparing your payroll. When you use a company like Warren Accounting Group to handle your payroll, you can rest easy knowing that your payroll will be compliant with all state and federal regulations. You will receive thorough reports and analytics that make it easier to make decisions and review the performance of your business.

Many people might believe that outsourcing payroll is a huge expense, but oftentimes it actually saves you money. Usually, the cost of running payroll in-house is more expensive than outsourcing it. More so, you can breathe a sigh of relief knowing that Warren Accounting Group uses extreme security measures to protect your employees’ bank account information and data. Having a third-party handle your payroll gives the employee who is typically in charge of the process the opportunity to focus on their other duties. This takes the burden of an extra task off of them and ensures that the process is done correctly without error.

Outsourcing your payroll allows you to be better prepared for upcoming tax seasons, and even gives you more time and energy to focus on the growth of your business.

Cons

Though there are many benefits to outsourcing payroll, there are a few disadvantages to consider as well. It does cost money to outsource your payroll. Also, you don’t have as much control of the process once your payroll has been outsourced. Of course, you still approve every check and submit the information to the company, but you are not spending the same amount of time reviewing your books and accounts as if you were handling the books yourself.

We do recommend completing a thorough review of the payroll company you are considering and asking other businesses who they may be using to ensure you are working with a trustworthy company. Warren Accounting Group works with a wide variety of businesses, and we are happy to provide new customers with references when requested.

It is also important to consider what time of year it is if you are contemplating the switch to outsourcing. It is possible to outsource mid-year, however the changeover could result in some complications or delays. Ideally, the best time to begin outsourcing your payroll is usually at the beginning of the year.

We know that having someone else take care of your payroll could create different issues you are not familiar with, but it can take a load off your plate!

Warren Accounting Group is a full-service firm dedicated to serving clients in eastern North Carolina. We can tailor our payroll services to the needs and requirements of your business using our state-of-the-art software. Let Warren Accounting Group handle your payroll needs, so you can focus on the success of your business. Contact us today to sit down with one of our professionals, https://www.warrenaccountinginc.com/contact/.