Is It Crazy or Confusing to Try to Do Payroll Myself?
Advantages and Disadvantages of Payroll Software
On a surface level, running your own payroll system doesn’t seem all that difficult.
You punch in the information from your employee timesheets, you make sure that hourly and salary wages are correctly calculated, and then you run some quick formulas to figure out exactly how much everyone’s getting paid – and then you’re off to the races.
There’s a mountain of other things you have to tackle to get your payroll right – including double checking that you’re in full compliance with federal and state taxes, you’ve covered all your local tax laws and regulations, and so much more.
It’s not hard to see why so many smart and savvy entrepreneurs and small business owners choose to hire a payroll service to handle the heavy lifting for them.
Even still, you might be on the fence about whether or not you should be tackling your own payroll process or hiring experts to do it for you.
That’s why we put together this short overview.
Let’s jump right in.
DIY Payroll Process – Is It Right For You?
There are a lot of small business owners out there that dive headfirst into the world of payroll without any prior experience, getting right into the nitty-gritty with paper and pencil or a spreadsheet to figure things out.
These entrepreneurs almost always find that they are spending a lot more time on payroll than they expected, sometimes hours a week that they would have liked to have invested elsewhere in their business.
On top of that, these business owners have to spend time familiarizing themselves with local, state, and federal tax structure, benefits, and a whole host of accounting principles.
It’s not hard to find yourself overwhelmed with this approach.
Can Payroll Software Make Life Any Easier?
Thankfully, most of those small business owners eventually migrate over to processing payroll with the help of some of the software options out there today.
There are plenty of software choices to choose from, all of them worlds better than pencil and paper – but that doesn’t necessarily mean they’ll make your life doing payroll effortless.
In fact, there are some pretty significant disadvantages of payroll software (such as QuickBooks) that you’ll have to contend with if you choose to go down this road.
One of the biggest disadvantages of finance software, after all, is learning how to use it in the first place.
As a self starting entrepreneur you’re probably comfortable jumping into processing payroll yourself without a second thought, until you realize just how much you have to learn – and how much energy you have to focus on this aspect of your business – that could be better invested elsewhere.
On top of the time commitment you have to make with payroll software, you’ll also find that none of them are true “one-size-fits-all” solutions.
The best software choices on the market today are designed to cover a myriad of business options, and this blanket approach results in general software that’s pretty useful most of the time. But you’ll never come close to learning how to do payroll manually, how to deduct payroll taxes for your specific business, or having to hire an employee to handle payroll for your company.
Outsource Payroll to Save Time, Money, and Energy
At the end of the day, the overwhelming majority of small business owners eventually decide to outsource payroll to companies like ours – and for a couple of really good reasons.
For starters, instead of having to worry about how you run payroll software or learn how to do payroll yourself – you’ll instead be able to focus all of your time, money, and energy on other high leverage (more profitable) areas of your business.
Let our dedicated experts handle the heavy lifting of knock-out payroll for you. You’ll be able to spend time on areas of your business you enjoy (marketing, sales, product creation, networking, etc.) while clearing your plate of a huge responsibility at the same time.
Even better, you get all the advantages of a payroll service without any of the disadvantages of payroll software or accounting tools. Think of us as your own payroll department without the excessive costs.
If you’d like to learn a little bit more about how we can help, explore the many free resources on our site or head over to our quote request page.
See our related payroll blog about the self-employed, Sole-Proprietorships, family-run businesses or those with only 1-2 employees.
We’re passionate about payroll!