Opening and running a business is a challenging endeavor, and this is especially true for the businesswomen of the world. In America, women only own 30 percent of all businesses, and sadly, first year capital funding for women running companies is 80 percent lower than our male counterparts. These overwhelming disparities make it imperative for female business owners to get ahead in as many ways as possible, but there are still many positive things going on for women in business, and smart business decision-making will continue to increase those positives. Good networking, business education, and smart money moves like payroll outsourcing can mean a huge step that direction.
Employee Productivity
There's no doubt that doing payroll is a hassle. For business owners who choose to handle their payroll in house, they take on this hassle themselves. This is far from ideal because this hassle reduces workforce productivity. Just imagine how long doing all of the payroll activities (ie. paychecks, taxes) takes any employee; now imagine what they could be doing instead. It's important to factor in the big picture when running a business, and in such, business owners need to recognize that the cost of outsourcing payroll may be far less than the cost of the tasks that won't get done because time is being unwisely spent.
Money and Savings
Outsourcing a company's payroll is a quick and simple way to save money. Larger corporations likely have the funding and necessity of having large payroll departments, but smaller businesses don't have, nor do they need, the luxury of doing this. The labor costs related to having an employee handle payroll can become overwhelming. In fact, the money saved by outsourcing payroll can even help a company grow. Every dollar saved is a dollar that can be reinvested into the company, and there's no doubt that this will help a business grow exponentially in the long run.
Accountability
Any business owner who does her own payroll has felt the fear of wondering what will happen if something is incorrect on their payroll or taxes. Fortunately, when payroll is outsourced, this accountability lies with the payroll company. It is their responsibility to handle and correct any mistake that they make. If for some reason they choose not to, they can be held liable in civil court and made to pay damages. This peace of mind can go a long way.
Compliance
Ensuring accurate compliance with payroll and tax laws isn't the only legal worry that a person having their payroll done in house will have to consider. The simple fact is that if a company has their own employees handle payroll, they will need to provide security measures. No matter how much a person trusts their employees, they can't chance that certain abuses may be occurring behind their backs.
Payroll companies make a living by providing payroll services, so they have security measures in place that are designed to keep shady practices from occurring. If something like this does occur however, as mentioned earlier, the payroll company is fully accountable and will handle the issue accordingly. This takes a huge hassle off of the hands of the business owners and frees her up to manage the big picture and tend to the myriad other things that need her attention.
If you can identify one change that is almost certain to positively affect your business's growth, there's no reason to avoid making that change. Outsourcing payroll may seem like an added expense, but in reality, it will end up saving money and lessening the items on the critical to-do list. There are enough glass ceilings over female business owners as it is, there's no need to create an extra one.
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Having operated her small business for the past seven years, Akilah Richards knows first-hand the benefits of outsourcing. She practices what she preaches by hiring outside help for various facets of her business, and will certainly add payroll experts to her list of priorities when she starts hiring employees. Learn more about the benefits of outsourcing payroll from the payroll outsourcing specialists at NEBS PAYweb.ca.
Photo Credit: http://www.flickr.com/photos/firechickenta99/3479600161/
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