Our goal is to make running your small business easier. One of the biggest problems for owners today is keeping enough working capital on hand to actually run your business on a day-to-day basis. Every business has this problem. Summit Financial Resources wants to make it easier for you.
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Outsourcing functions like payroll might also help make things easier for you. Not every business will reap big benefits, but owners and managers of growing businesses – especially those doing payroll manually – find it well worth the effort to research the right service provider and transition to a third party service. Here are a few of the reasons why.
Lower Costs
Using an outside service provider can help reduce the direct costs of processing payroll. Hiring new or additional personnel and ensuring that they have the latest training can be expensive. If your bookkeeper or controller gets a new job, they will take with them all of the knowledge related to processing your payroll. In addition, many small businesses overpay employees as a result of inaccurate recordkeeping.
A professional payroll provider employs a staff of professionals who know payroll processing inside and out. They keep up with the latest training and technologies and can provide more accurate time and attendance recordkeeping solutions. This can help limit business risk and virtually eliminate costs associated with overpaying employees because of differences between the employee’s time and an accurate time record.
Reduced Risk
Government rules and regulations are always changing. Small business owners often don’t have time to keep up with these changes or worry about whether they have the latest version of their payroll software and the most recent tax tables installed. If you or your payroll department makes mistakes when it comes to complying with these regulations, it could result in costly fines and penalties.
Payroll providers employ individuals who are trained in all aspects of the law, and it’s their job to stay on top of the latest jurisdictional reporting and taxation requirements so their customers don’t have to. Most established payroll services provide a tax guarantee, ensuring that customers will incur no penalties because the providers take responsibility if they occur. In other words, when you outsource payroll you are outsourcing the liability as well.
More Options for Employees
Using a payroll service enables you to provide your staff with a variety of pay options. Employees increasingly want the convenience of online access to payroll information and direct deposit, which is difficult for a company that doesn’t use an outside vendor to provide. Employers that aren’t able to offer such options may be at a competitive disadvantage.
More Time to Grow Your Business
Entrepreneurs are famous for taking on numerous responsibilities to save money, including handling the payroll. Regardless of the number of people your business employs, this is a task that requires time and attention to detail. From calculating payroll each time period and printing and signing checks to preparing and remitting taxes and returns, it’s a process that takes a considerable number of hours each month.
Outsourcing this necessary function immediately frees up precious time for you and your organization. You can focus talent and resources on servicing customers and growing your business. Partnering with a payroll expert ensures that your payroll remains a top priority and allows you and your staff to do what you do best, running a successful business.
Payroll is one of those critical functions that may not directly increase sales or contribute to your core business. A good payroll provider offers capabilities that go beyond what you can do on your own and the expertise to ensure compliance with current rules and regulations. The resulting benefits may provide peace of mind for you and greater success for your employees and your business.
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Summit Financial Resources specializes in working capital financing for small to medium-sized businesses that need increased cash flow. We provide working capital financing through invoice factoring, asset-based lending, inventory lending, and equipment financing.