It’s time to have a serious conversation about outsourcing payroll.
You are a small business owner. You are working hard during this time to see that your business grows and thrives. You probably work over 10 hours a day and handle many administrative tasks yourself because you don’t want to spend precious dollars on things you know you or your partner can conduct yourselves.
But is this really the right strategy for your business? For example, if processing payroll and/or handling taxes takes you more than 4 hours per month, you’re spending too much time on it. Period.
According to the US Small Business Administration, payroll is among the top 10 business functions that a small business ought to outsource. Yet, many small business owners are reluctant to do this. Why is that?
Below we examine several reasons why small business owners resist outsourcing their payroll to a third party, and we dispel myths that go along with this mindset.
Myth #1: It’s going to cost me a lot of money.
Au contraire, mon frere. Outsourcing your payroll costs you a minimal amount of out of pocket monies, especially when you compare it to the time savings you’ll get back.
As you’ve learned, processing payroll is comprised of many more tasks than just paying your employees. Processing payroll yourself requires you to:
- Keep abreast of wage and hour laws.
- Stay up to speed on tax regulations and laws in each state regarding taxes and payroll.
- Make sure you don’t miss any tax filing deadlines.
Handling payroll could almost be a full-time job for the uninitiated. Plus, it is a non-core function of your business, and these non-core functions you’re performing are the first places you should look for outsourcing options.
Myth #2: I will lose control of the functions associated with my payroll
If this becomes true, you’re using the wrong outsourced payroll partner! In contrast, you should have more control over your payroll than ever before when you outsource.
An excellent outsourced payroll partner will work closely with you to make sure you are privy to payroll and tax reporting at all times, maintain a sound dashboard system for you to keep up with what’s going on (in your own time).
As you can see, as long as there is good communication between you and your outsourced payroll partner, you shouldn’t lose anything but instead, gain the peace of mind that comes with not worrying about all of the activities associated with payroll that are a major “time suck” on your already precious person-hours.
Myth #3: It is not secure to outsource my payroll and tax data.
If you choose the right outsourced payroll partner, they should have the following checks and balances in place:
- Secure firewall under which your data is stored
- Safe backups offsite that ensure a quick restore of data should there be a problem
- Regular audits of your data to ensure there are no breaches of security
Data security is often much better with an outsourced partner than it is within your own small business. Outsourced payroll providers are accustomed to keeping multiple clients’ data safe in a regular, day-to-day manner, so they are experts on security in a way you cannot be. So it is a falsehood to believe that your data is less secure when outsourced. If anything, it is more secure.
Hopefully, at this point, you’ve changed your mind a bit about the value of outsourcing your payroll. From a time and a worry standpoint, you will receive peace of mind and a sizeable chunk of your time back. You can be assured that your payroll and tax data is safe. You will find that the practical business activities you can get to more quickly now that you do not have to bother with payroll will more than make up for the cost of outsourcing.
Finding an outsourced payroll partner you trust is easy when you bank with NobleBank & Trust. We already know your business well with our reputation of being a community bank with “big bank” services and technologies. We have more than likely already been handling your loans and lines of credit. We’ve developed an intimate relationship with you and your business, so outsourcing your payroll will be a natural extension of our relationship.
Outsource Payroll to a Banker You Can Trust
Reach out to your NobleBank & Trust business banker today for more information on outsourcing your payroll to us. And if you’re not already a NobleBank & Trust customer, why not? We build value for our customers in a way that you won’t find at other banks in the area.
Our slogan: Friendly. Proactive. Professional. Community banks are the heart of our business community in North Alabama, and NobleBank & Trust puts a personalized touch on the life of our relationships with our small business partners. See if your large bank relationship can say that!
NobleBank & Trust
Throughout Central Alabama, NobleBank & Trust is servicing small businesses with deep relationships you won’t find at the big banks. Click here to find a location throughout Central Alabama near you, or give us a call for a consultation that addresses your unique business needs at 256-741-1800.