March 29, 2019
Fun fact – doing payroll on your own will not necessarily save you time or money. Actually, it could end up costing you. Mistakes add up, and even the tiniest oversight can impact your bottom line. Dates matter too, and you had better watch them closely because you will be charged additional penalties if you don’t file your employment tax returns on time and pay the money you owe. If you’re not careful, fees and fines will start to multiply, and if you’re handling your payroll in-house, the liability is on you.
Details, Details, Details…
Are you a detail person? Do you love worrying about complex tax deadlines and ever-changing regulations? Do you look forward to the nights you wake up in a cold sweat worrying about penalties? Or perhaps you prefer spending all of your spare time reading IRS bulletins and publications? When it comes to payroll, it’s all about the details and tackling the process in-house is going to require hyper focus and your constant attention.
Liability aside, the NSBA points out that the sheer complexity of the tax code—along with the mountains of paperwork it necessitates—is a significant problem for America’s small businesses. How much spare time do you have, or does your staff have to monitor processes and changes? Here’s a starting point – in 2014, 40 percent of small businesses reported they spent more than 80 hours per year dealing with federal taxes—that’s two full work weeks spent just on federal taxes. Nearly 60 percent of small firms spend more than 40 hours per year on federal taxes alone.
Loss of Momentum
As a business owner, your focus needs to be on running and growing your core business – particularly as a small to midsize business. That means you can’t be distracted by the complexities of payroll. And you definitely can’t afford to be sidelined by penalties and fines.
You need to maintain company momentum, and you need time to get your most meaningful work done – this is where growth happens, and brainstorming, planning, and working on goals comes into play. Rather than deal with the headache and risk of doing payroll in-house, focus on your strengths and outsource whatever is possible. In fact, the money you save and the time that you reclaim can be redirected to other areas of your company, and keep your organization moving forward.
It’s time to evaluate the real cost of doing payroll in-house compared to outsourcing and determine if you can afford all of the ways it could cost you. As your business needs change and grow, outsourcing complex, time-intensive tasks can not only save you time and money, it will also allow you to focus on what you do best, building your business.
Time – there never seems to be enough of it. Time is also something that we make and take, save and spend, keep, waste, kill, and lose. Ultimately though, time is money and making sure that you and your team are in the best position to maximize the time available means you’re going to have to look closely at time killers.
When it comes to hiring, resumes and interviews will only get you so far. Today, background checks are a standard part of the hiring process and can protect you from potential liability and help you avoid misinformed decisions. When it comes to background checks, one size does not fit all, there are many different types available, and you may select different reports depending on your needs, the nature of the job, or the location.
Ask any business owner and they’ll tell you – growth is the goal. Growth is a visible indicator of success, and proves that the long hours, lost weekends, and risk has paid off. However, when growth happens too quickly it can be overwhelming and if you try to tackle the process by doing things as you’ve always done them, you could be in trouble.