Payroll is one of those necessary evils: while you need to pay your employees and stay on top of your accounting, studies report that the vast majority of small businesses need help running their payroll. That’s not surprising, since payroll can be very complex—especially if your business was hit hard by COVID-19, PPP loans and other pandemic-related issues. Sometimes it’s better to outsource your payroll tasks and strategy. When you work with a great accounting and HR service, it can even drive growth.
How outsourcing payroll helps your business
When it’s tax time, a lot of business owners hand their records over to their accountants and wait for the magic to happen. An accountant might be able to provide some insight into the company’s economic standing and make suggestions for growth. However, that once-per-year analysis probably won’t provide an in-depth look at the company.
When you outsource payroll, however, you have an opportunity to get that deep dive into your business finances and beyond. Expert HR services can examine your monthly records and gain more insight into the day-to-day operations. In turn, this helps them determine the overall financial health of your company, and offer proactive solutions to drive profits and cut expenses. Here are some examples of how this might work for your business:
- Know where and when to expand: If your company is thinking about opening another location, your payroll company can provide data about the HR costs of expanding an existing facility versus opening an entirely new location.
- Create ideal hiring profiles: Which of your existing employees are showing the most success—and which education, experience and other qualities do they share? Your HR company can pull hiring and financial data to create ideal hiring profiles.
- Ensure compliance: Keeping up with federal, state and local regulations is tough to do on your own. An HR company can analyze whether payroll is in compliance with these standards and what it’s costing you.
- Find out if your employees are burning out: Payroll can offer some interesting employee data, too. Who is working overtime and failing to take vacation and sick leave? Can you predict which employees are on the brink of burnout? Your HR service can pull the data and make sure everyone is taking enough time off to support their physical and mental health.
- Monitor turnover and hiring: Working with a payroll company helps you monitor the turnover and hiring process across multiple locations. In turn, this provides insight into how well a facility is doing at training and retaining workers, which can affect your bottom line.
- Discover which types of employment work best: What’s the ratio between your part-time and full-time employees, independent contractors and other types of employees? Ongoing payroll analysis can help you determine which is best for your bottom line.
For more information about how payroll can affect your growth strategy, call Windsor HR Services, Inc. Let us show you how working with us and outsourcing your payroll processes can benefit your business.