The Canadian payroll and bookkeeping industry has grown significantly in the last couple of years, but many business owners still view payroll outsourcing with skepticism. By choosing to manage their payroll processing internally, however, they pose certain risks to their business’s profitability.
Many Canadian businesses opt for in-house payroll management to save on outsourcing costs. However, this decision isn’t always as budget-friendly as business owners assume it to be.
Comprehensive payroll systems or software are typically quite expensive. In some instances, you may even have to pay a fee each time you run the system or be charged an additional amount when you opt for check printing or add new employees. Over time, these additional fees and can add up significantly and adversely affect your business’ profitability. What you may have thought to be a one-time investment becomes an expensive tool to continue using for payroll management. This adds to your financial costs.
You know how they say “time is money”? Payroll management affirms that statement, especially when you outsource your business’s payroll processing.
Here’s the thing; payroll processing is a lengthy process. It requires time and effort and isn’t something you can pull off in a couple of hours while juggling various other tasks. The more time you dedicate to managing your payroll system and navigating through it, the longer you’ll have to stay away from participating in profit-generating tasks. Moreover, you may also experience delays because of glitches and IT issues, a challenging interface, or automation errors. These will contribute to you spending more time away from other essential tasks, negatively affecting your business’s profitability.