Payroll processing might be a fact for any kind of business, but the burden of this crucial function can be overwhelming for small business owners. Doing it themselves means an additional task to juggle along with everything else, while hiring full-time staff for it leads to expenses for which they might not be prepared.
This is the primary reason why there is a significant number of small businesses now using external payroll services, with the market projected to grow even more in the coming years. If you’re facing the same administrative challenges in your Nashville business, it’s the best time to consider hiring a CPA firm to help you manage this part of your operations.
Work on it, not in it
As a business owner, your first priorities are enterprise stability and growth opportunities. Unfortunately, these things tend to take a backseat when you’re elbows deep into the day-to-day of running your business. This is where the delegate to elevate concept comes in. For you and your team to be able to focus on elevating the business, you must first delegate the tasks that take time away from mission critical activities.
Payroll delegation and its advantages
Payroll preparation and tax processing are responsibilities you can easily delegate, as these are mostly standardized functions that any qualified CPA can perform. Doing this comes with other advantages, too.
Accuracy and compliance
Outsourcing to a CPA who has the necessary knowledge and tools for this endeavor will ensure 100% compliance to best practices, as well as the latest government regulations. While the state of Tennessee does not have local payroll taxes nor state income tax, employers are still responsible for withholding federal income tax from wages. It can still be a lot to keep track of and mistakes can be quite expensive. With professional help, though, you won’t have to worry about miscategorizations, miscalculations, or missed filing deadlines that usually result in hefty fines from the IRS.
Another incentive to outsource payroll management is the savings it can spell for your organization. When hiring an in-house employee, you have to factor in salary and benefit costs, as well as hiring, onboarding, and overhead expenses. While there is also a cost to outsourcing, under this arrangement, you have the freedom to define how little or how much you need in terms of services, so you can better control the budget for this function.
All owners want to see their operations expand, and even the smallest distractions can veer the business away from that outcome. Partnering with a CPA will free you from time-consuming payroll activities and worries, which might be just what you need to start taking your business to the next level.