Monday, 23 July 2018

Information and commentary for the small business banking industry

How small business owners can benefit from outsourcing payroll

17 Aug

Working through the payroll each week can be a time-consuming, tedious and often stressful task. If you’ve got small business customers who are becoming increasingly frazzled having to deal with it each week, it could be time to talk to them about the benefits of paying someone else to do it.

Many business owners feel that it’s a waste of money to outsource a task that they think they should be doing themselves. But depending on how fast a business is growing and how much time is being spent on payroll, a business owner could be actually losing money in the long run. The more time they spend on it, the less time they’re spending growing the business and generating profits.

Not to mention the stress factor, since payroll’s an easy task to get wrong, and if mistakes are made, the consequences can be severe.

Why outsourcing payroll is a business plus

Outsourcing means a business owner can:

  • Save money. They might be spending more time than they want on processing and reporting payroll information, and not enough time doing what they should be – making money. It’s less expensive to hire a bookkeeper or accountant than to employ a full-time staff member to complete these tasks. By hiring one, they’ll only pay for the actual time the contract worker spends on their accounts.
  • Free up time. Bringing together payroll, withholdings, submissions to produce the paperwork that employees require for their tax returns is very time consuming and a lot of work. That’s time and energy that could be spent growing the business.
  • Improve service and efficiency. If you decide to outsource to an accountant or bookkeeper, they can take over other administrative tasks as well, such as invoicing and chasing up payments.

A payroll contractor will not only handle all aspects of a business payroll, but provide up-to-date reports and anytime access to payroll information.

Of course, it’s important to find the right person to take on these sensitive tasks. They involve a business’s finances, so whomever is hired needs to be trustworthy – the last thing a business owner needs to be worrying about is confidentiality and security. Word-of-mouth is a great way to find someone who comes highly recommended.

Another great reason for outsourcing is to obtain better financial advice and reporting. The right advice at the right time could end up saving a business owner money over the long term.

Here at TSBC, we’ve got plenty of content around the benefits of outsourcing payroll and other administration tasks. Get in touch with us so we can help boost your online content.


Glen Senior
Glen is the founder and CEO of The Small Business Company, a New Zealand based agency that specialises in helping banks communicate with small businesses through content marketing. He has written a number of books on small business principles and is a sought after consultant and conference presenter.

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