As your business grows and evolves, you will undoubtedly encounter more problems. It’s not only a matter of buying necessities, from office supplies to business equipment, you also need to hire new employees and purchase new space for additional storage. And of course, this also means additional paperwork and reporting. As your business gets bigger, things are becoming more complex.
If you’re already tired of handling your payroll and other financial issues by hand, it might be time to pass the tedious task off to an outsourced payroll service. Switching to an expert can provide you so many benefits, including reducing cost, saving time, and minimizing mistakes. So if you’re ready to take the leap to hire a professional service, here’s the guide to help you make the right choice.
Know your needs
There are more than a dozen of payroll services to choose from, so it’s crucial to identify your specific payroll requirements and search for a provider that offers what you need. The thing is not everyone offers the same kinds of service. There are companies that only specialize in calculating tax obligations and writing checks; there are providers that only handle payroll and insurance accounts; and there are others that go a step further and deliver additional services, including administering employee benefits, deducting for retirement plans, etc. Look for someone who can cover all of your accounting needs.
It can really be hard to identify the actual cost of an outsourced service because companies usually have different payment structures. Some service providers charge on a monthly basis, some collect quarterly, and there are also others that charge a fixed price or hourly. It’s very important to talk with the service provider and choose the one you feel you’re most comfortable with. Before choosing, however, make sure that the setup fees are reasonable for the service they will render. You may also want to check if the fees you were quoted are subject to change, and if there are hidden charges. The bottom line is to choose the one that you think will give you the most value for your money.
Standards of service
When looking for a payroll service provider, it pays to choose a company that can process the data you need accurately and on time. Ask them – what are the turnaround times? You’ll also want to verify if they maintain high degree of accuracy, comply with the tax rules and deadlines, as well as deliver work that doesn’t need frequent checking and fixing. And if, for instance, there are some errors in the data, what methods do they use to correct the issue? It is also crucial to ensure that they use reliable software in maintaining and calculating your finances.
One of the most important things to also consider before choosing an outsourced service provider is if the company can really be trusted. To verify, ask them for customer references to hear about others’ experiences with them. You can also ask someone you know who have experience working with the company that you’re planning to hire. Also find reviews online, and determine if the company is really worth hiring for. The financial stability of the company is also an important factor to consider since you will trust it with large amount of money that you and your employees’ worked hard for.
Finally, you want to verify that all your data are securely kept and taken care of. Ask the provider what kind of data-security procedures they use. Are confidential information and data stored in secured locations? Are backup copies maintained in secured but accessible locations in case of disaster? Do they use encrypted connections to prevent exposure of sensitive data, especially to unauthorized individuals?
Indeed, choosing a reliable payroll service provider can be quite overwhelming. But if you do your research and ask the right questions, you can find the service provider that is right for you.