Why Your Start Up Should Use a Payroll System

With a start up, it's generally all systems go from the start. Those who have made it on board are ready to dive in, work hard and harness that start up energy to create a novel service. However, just because your business model thrives on uncertainty doesn't mean that all aspects your business practice need to. Implementing a payroll system in a start up makes good sense for a variety of reasons.

First, do you really want to spend time processing payroll yourself, especially if you lack a financial background? In order to do their best work, your employees need that sense of financial security. They want to feel certain their paycheck is coming at the end of the day. Payroll service automates the payroll process, minimizing your involvement and keeping the entire payroll process on a regular schedule. Outsourcing payroll doesn't even need to be a big expense: When you compare the time it takes to manage payroll yourself and the cost of the supplies, it can even be cheaper to outsource.

Advantages of Outsourcing

Cost isn't the only advantage to moving payroll out of house. Additional advantages that you may not have considered include:

  • Eliminate anxiety and worry: Payroll providers make it their job to stay on top of every tax change, so they remain on the right side of the law. Do you? Most likely, you're busy doing other things. By outsourcing to a payroll system, you know that payroll and tax filings will be error-free.
  • Increased payment method: Payroll services offer a range of payment methods, and employees can choose the method they prefer. It might not be in your power to offer direct deposit, but automated systems can do it easily.
  • Increase Reliability: If only one person in your organization understands payroll and benefits administration, you're in trouble when the person is on vacation or decides to pursue another opportunity. Leaving payroll in the hands of an automated system allows all of the knowledge to remain securely with those who are processing payroll. It also lets all of your staff focus on growing business.
  • Nail Tax Filings: Late submissions for quarterly payments and other tax documents are penalized. Many payroll services have dedicated staff that keep abreast of tax law; some even assume financial responsibility if they make an error in filing.
Choosing Payroll for Small Businesses

If you're not quite ready to outsource, you can manage internal payroll fairly well using Intuit's QuickBooks. You'll need to enter the data yourself, or assign a staff person to do so, but you can use QuickBooks to handle tax withholding, and cut paychecks using Intuit software.

When deciding whether to outsource, obtain quotes from multiple outsourcing options.Take the time and in-house cost of processing payroll into account to help decide the right payroll option for your current business needs.


Jessica has an entrepreneurial spirit and is always eager to learn more about business management and startups. She spends much of her time reading and blogging about business processes and marketing, but also loves science fiction novels and tending her herb garden.



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