This is a question I am asked by almost every client, and may be the easiest question to answer. The answer is a resounding YES, YES, YES!
Payroll is one of the trickiest parts of a small business, and can lead to more problems than you might expect. Here are three reasons I think it’s smart to outsource it:
1) You don’t know how to do it. Yes, you are a smart entrepreneur. You know your product or service better than anyone, and will make millions of dollars selling it. But, unless you have been specifically trained in payroll, you have the potential to make big mistakes that can cost you thousands.
2) You don’t have the time. If you are a small business owner, you should spend your time working ON your business, not IN your business, as Michael Gerber says in his book “The E-Myth”. Focus on your strengths, and hire out your weaknesses.
3) It shifts your liability. When you contract with a payroll service, they take on all responsibility for tax deposits and tax form filing, including filing all forms W-2 at the end of the year. They handle it all.
Now that you are convinced, who should you use? There are several reputable firms out there. But, if you are in the central Arkansas area, two of my favorite options for small businesses are Complete Payroll Services and Paychex. I have used both many times, and have found them to be very professional and conscientious.
If you are out of the central Arkansas area, or would like additional options, shoot me an email, and I would be happy to discuss it with you.
What has been your experience with payroll? Share your horror or success stories below.
Please note: I reserve the right to delete comments that are offensive or off-topic.