Payroll as an Opportunity Cost

When you run a small or medium-sized business, every dollar counts. After all, there are salaries to pay, bills to take care of, and a bottom line to watch out for.  On top of all that, there are competitors to keep in mind, a market that is sometimes unpredictable, and an economy that always seems to favor the “big guys” over small businesses like yourself.  Unfortunately, in the race to lower costs and build lasting success, some small business owners take frugality to unnecessary extremes that end up actually causing financial damage over the long run.  As it turns out, sometimes–in both the personal and professional life–you have to be willing to believe in yourself, and then invest in yourself accordingly.

What does all of this have to do with running payroll?

One of the most common examples of a business being hurt by its own frugality is when small business owners decide to run their own payroll in order to save costs.  Of course, every small business (and every small business owner) is unique; but the truth is that unless you have extensive experience, specialized training, and a real desire to spend your time running numbers and making calculations, doing in-house payroll is probably not the best decision for you.  Why?  Believe it or not, your time is actually extremely valuable for your company!  No one in your organization understands your business as much as you do–and the smartest way to spend your time is by leading and focusing in on the profit generating aspects of your organization.  Sure, you may be able to save a few bucks by doing your own payroll rather than contracting it out to a payroll company, but that decision still represents a major opportunity cost when you consider the amount of valuable time and energy that you invest in such a process.  Factor in the knowledge that an error in payroll can leave you and your company on the hook for bit time IRS fees, and the decision to outsource payroll becomes a no-brainer!

Precise Payroll

If you would like more information on the possibility of outsourcing your payroll operations, contact Precise Payroll today!  With over 30 years combined experience in the industry, our team of experts can help you optimize your productivity while relieving you of a major hassle!