3 Big Reasons Your Small Business Needs Payroll Software

Many small business owners find their way into entrepreneurship out of a passion for a specific industry. They see a problem or deficiency within their field, and the fire grows deep within them to help solve it. 

 

However, for those business owners already in the thick of it all, two universal truths have quickly made themselves known. Entrepreneurship is not for the thin-skinned and, perhaps most importantly, it’s critical to do what you do best and outsource the rest. 

 

To that point, we’ve put together the three biggest reasons why small businesses should examine adopting a payroll solution and why your company should consider putting it at the top of your to-do list today. 

 

Saves time

saves-time

When you’re a small business owner, you acquire a lot of “hats” – janitor, mentor, HR representative, hiring manager, marketing director, CEO, and more. While each of these positions has its specific set of duties and importance, they also inevitably eat away at those precious minutes in the day.

 

According to a study performed by SCORE, the majority of small businesses spend over 40 hours per year on tax preparation. And as much as we all want just a few extra hours in the day, the truth is: one person cannot do it all. For so many business owners, the focus of their business should be on business growth, not heaps of repetitive administrative tasks that eat up valuable time, money, and energy. 

 

So, the question remains: are you willing to spend your precious time sorting through labor codes and attempting to parse technical jargon, or would you rather take that time to focus on growing your company?

 

Avoids crucial mistakes

As stated above, being a small business owner means taking ownership of a lot of different roles in the company. And when the mind is focused on fixing a leaky pipe, or hiring new talent, sometimes mistakes can find their way into the rotation, as well. 

 

Unfortunately, mistakes regarding payroll can be costly and result in a host of disastrous penalties and fines. The IRS has stated that roughly 40% of small businesses incur penalties due to mismanaged payroll processes to include one or more of the following:

 

  • Underpayment of estimated taxes
  • Failure to file or late filing
  • Failure to pay or late payment
  • Inaccurate payment
  • Tax fraud

 

Keeping payroll in-house is far more involved than merely cutting checks in the correct amount. Having a deep understanding of taxation laws falls under the umbrella of payroll and, if you’re not careful, you could unintentionally induce fines and penalties in which your company cannot recover. 

 

Allows you to focus on your people

People are, arguably, the lifeblood of any new business. Whether speaking of your business’s clients or your employees, having a small business means being part of a highly intricate ecosystem of people. 

 

By adopting a payroll system, you communicate to your customers they are valued simply by placing more time and attention on their wants and needs relative to your business. And, concerning your employees, you can communicate the inherent transaction that takes place between employee and employer in which money is exchanged for the work an employee provides, and honor that transaction by providing pay that is both accurate and on time. 

 

As a small business, and especially within any new entity, it might seem like a luxury to adopt a payroll software. After all, being lean and performing as many tasks in-house as possible is a badge of honor for many small business owners. However, the nominal expense associated with an automated payroll solution can reap both guaranteed and immediate returns on investment -- two things all small business owners both crave and know are rare.

 

Don’t wait to find out first-hand how keeping payroll in-house wastes time, money, and energy, while also stunting your business growth. 

 

Get a leg up on the competition and schedule your free consultation today.

Smarter Payroll Can Grow Your Business | Schedule Free Consultation

 

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