Payroll processing is a tricky business, but it can be even more work for small businesses than for bigger businesses. Many small business owners take on the responsibility of managing employee payroll tasks because they believe it won’t be difficult, or because they don’t want to spend money on outsourcing to a payroll service provider. But if you’re one of the many small business owners doing this, your payroll program may actually be hindering the success of your business. Here are a few things you may not be thinking about — but you definitely should start.
- Even the smallest of mistakes in payroll processing can end up costing businesses big time, and for small businesses, the financial penalties could be disastrous. It’s easy to make tiny mistakes — especially during the stress of tax season — if you have other business on which to concentrate. A professional payroll processing service will make sure that these mistakes don’t happen.
- Payroll processing can turn into a full-time job. It’s more than just handing out employee checks — it’s also about calculating taxes, abiding by the 190+ Canadian legislative regulations, and handling HR issues. With all of these extra responsibilities, a small business owner may become increasingly overwhelmed by payroll-related tasks and be unable to focus on the core goal of the business.
- Small businesses are the greatest source of uncollected taxes in Canada, and the CRA is catching on. Now more than ever, tax regulations are being strictly enforced to make sure that no small businesses fall through the cracks. The best way to stay off government radar is to just play by the rules, and an experienced accountant can make sure that your business stays afloat.
Creating and maintaining a successful small business is hard work, but there are some tasks that are just needlessly difficult. Calculating employee payroll is definitely one of them, and over 85% of certified public accountants agree that a small business can benefit immensely from outsourcing payroll processing. If any of the above points sound too familiar to you, then it might be time to start thinking about finding a new payroll solution.