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Should you outsource payroll?


Benefits of outsourcing admin tasks

Wouldn’t you like to be able to reduce your time spent on administrative tasks so you could focus on increasing profits and running your business efficiently? Now might be the right time to contract out bookkeeping and payroll.

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 your business is growing and how much time you’re spending on administration, you could be actually losing money in the long run. The more time you spend on bookkeeping and payroll, the less time you’re spending growing the business and generating profits.

Not to mention the stress factor, especially with payroll. It’s an easy task to get wrong, and if you make a mistake, the consequences can be severe.

Why outsource?

If you’re at the stage where you’re spending large chunks of your weekends and evenings wrestling with the books, consider the following. Outsourcing means you’ll:

  • Save money. You might be spending more time than you want on processing and reporting your own accounting and payroll information, and not enough time doing what you 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, you’ll only pay for the actual time the contract worker spends on your accounts.
  • Get better reporting and expert advice. One of your main motivations for outsourcing should be to obtain better financial advice and reporting. The right advice at the right time could end up saving your business money over the long term.
  • Free up time. Having more time to allocate to business and relationship building activities could be vital. You might also find that your stress levels naturally decrease by getting a skilled bookkeeper on the job.
  • Improve your service and efficiency. If you decide to outsource to a bookkeeper, part of their job can be issuing invoices in a timely fashion and ensuring your bills are paid on time. They can help your business become more efficient by reducing late payments.

Of course, it’s important to find the right person to take on these sensitive tasks. They involve your business’s finances, so whomever you hire needs to be trustworthy – the last thing you need to be worrying about is confidentiality and security. Ask your advisors, mentors and fellow business owners for some recommendations on who best to approach.

Additional resources

Our payroll partner Payworks can help you with your payroll needs. Meet a Payworks representative at no charge to see their cloud-based HR and payroll services that are right for your business.

At Meridian, we’re big on small business. Learn about our small business banking solutions.

Talk to one of our Small Business Advisors. They’ll take the time to get to know you and your business, and can help tailor financial solutions that fit your needs.

Meridian Credit Union communications are intended for informational purposes only and do not constitute financial advice or an opinion on any issue. We would be pleased to provide additional details or advice about specific situations if desired.

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