Small businesses owners take on a variety of responsibilities when handling their operations, including hiring and managing employees, developing effective marketing strategies and interacting with customers. To help alleviate some of the stress that can come from juggling many duties, some leaders make the decision to outsource certain jobs. While this helps to keep operations running smoothly, one aspect that should not be sent outside of companies is payroll. There have been many advances in payroll technology
over the past years, and now small businesses can use effective software solutions to manage their systems and stay compliant with Canadian payroll legislation
.Downsides of outsourcing
At first, outsourcing payroll may seem like a wise decision for owners, as it can sometimes be a complicated and arduous task. However, the tactic comes with numerous risks. Business 2 Community writes
when leaders consider outsourcing this essential responsibility, they sometimes neglect the downsides that can come back to haunt companies in the future. For example, many providers can charge expensive add-on fees, maintain different business schedules and have a lack of secure processes in place when dealing with sensitive employee information.
Another drawback is the fact that some outsourced providers may not offer retirement management services, meaning that small businesses need to add another task to their lists. In addition, sending payroll responsibility outside of companies requires constant supervision and monitoring, writes the news source. Why would an owner want to outsource the duty if he or she needs to frequently oversee the operation and make sure everything is being processed correctly? The whole point of hiring an outside provider is to relieve some of the stress on companies' shoulders, meaning that leaders would still be burdened with payroll maintenance.Payroll software is the way to go
Instead of outsourcing payroll and dealing with the associated risks, small business owners should use payroll software
to manage all of their needs. The Houston Chronicle writes
that there are many benefits that companies can see when using these payroll solutions, the first of which is processing speed. Manual systems take up too much time, and providers may suffer from the same flaw. By implementing a software tool, leaders can get payroll duties completed more quickly, leaving more time for other responsibilities.
Error rates are also reduced significantly with software solutions, states the source. Any information entered in the system are automatically updated, providing businesses with accurate data. In addition, businesses are able to keep up-to-date payroll records that are required for financial reasons.