What’s all this about businesses outsourcing payroll services to maximize their time and ultimately increase their revenue? The certified public accounts at Clifford, Ross, Raudenbush & Cooper get this question a lot. Keep reading for some insight into the important role that outsourcing plays in achieving economic efficiency.
Saving Money is Challenging
Saving money is not a walk in the park. Countless books, articles, and seminars have addressed the topic, and an entire industry – the accounting and finance industry – has formed around the concepts of proper saving and investing. Regardless of how challenging it can be to navigate finances in the business world, however, companies who want to be successful must learn to apply their resources in the most economical and efficient manner possible.
What is Outsourcing?
One well-known and well-respected trend in the business world is outsourcing. Outsourcing is a business strategy in which companies shift tasks or job functions to a third-party company instead of handling them in-house. Outsourcing can encompass everything from content writing, engineering, marketing, facilities management, accounting – you name it.
Traditional economic theory affirms that firms exist to maximize profits by keeping the cost of transactions down, and that means it is sometimes best to hire an outside specialist. A department supervisor may know how to fix an electrical problem, for example. It may not be in the best interest of the company for the supervisor to allocate time to that project. A successful manager understands that profits increase when resources are allocated efficiently. Opportunity cost matters.
Why Outsource Payroll Services?
Payroll is clearly essential to any organization, but it is also a non-core function. By non-core function, we mean it doesn’t directly impact the sales of a company. Payroll is also very technical administrative task that requires a great deal of time and attention to detail.
Outsourcing payroll services can hep companies in a myriad of ways. It frees up staff to focus on the core functions of a business. It gives companies access to expertise and technology that is specific to the payroll task, and it reduces the risk of mistakes and IRS penalties. The IRS also indicates that 40 percent of small businesses pay an average penalty of $845 per year for late or incorrect filings and payments. Payroll services provide assurance by offering tax guarantees and helping companies avoid unexpected fees.
Helping El Paso Businesses Thrive
The process of using outside firms for accounting and payroll services has grown in popularity over the years. This growth has occurred for good reason! Outsourcing helps companies focus on the core tasks of their operation so that they can thrive in their field of expertise. Clifford, Ross, Raudenbush & Cooper is a well-established accounting firm that offers a wide range of services. So, if you are interested in finding out more about how we can alleviate your task burden, contact us today!