One of the business decisions you have to make is whether you’ll be managing your payroll in-house or outsourcing it to other companies. Your staff’s wages and commissions need someone to be focused on making the necessary calculations to ensure everyone gets what they deserve on payday. There is also a need for a specific person to attend to disputes, concerns or issues regarding their wages.
Now, why would you let other people facilitate managing your payroll in-house or outsourcing it when you can do it by yourself? There are many reasons to do that.
For one, you need to be qualified as an accountant or anything related to finance management to be an effective payroll specialist. That means enrolling yourself in school to learn finance management. That is going to take time which you may not be able to afford as of now to learn something which you can easily pay other people to do for you; although learning the basics of finance management is also a good thing to learn, which you can do as soon as your business is stable and able to run on its own without your active participation.
Two, this task can be very tedious and if you’re truly serious about managing your business, your focus should lie on spearheading activities and properly delegating tasks that would be considered as administrative to other people who are experts in that field.
Now, here are some pros and cons when it comes to managing your payroll in-house or outsourcing:
- Managing your payroll in-house allows you more control of wages and commissions, if there are any, that need immediate decisions for approval or denial.
- Whereas managing your payroll through an outsourced company allows for more objectiveness when it comes to payroll issues, concerns or disputes.
- Using an outsourced company to do your payroll for you frees up your business expenses in terms of overhead and housing the staff in your office.
- Managing your payroll in-house will allow you to maximize the efficiency of the people working for you as you can designate to do other jobs if calculating for pay is not yet critical. This often happens during the middle of the month or if it is more or less 10 days away from payday.
- Managing your payroll in-house allows for faster communication between you and your payroll staff whereas outsourcing it requires either extensive telecommunications or scheduled visits from the outsourced staff for clarifications.
So now that you have all the pros and cons of managing your payroll in-house or outsourcing it to other companies, it is now time for you to decide which option to take.