Payroll Services vs. Payroll Software: What Nobody is Telling You!

Payroll services hold many advantages over payroll software, and some of them are surprising.

Payroll software, payroll servicesMany business owners attempt to use payroll software on their own. But in doing so, they actually spend more money and often receive poor service. Those who go with dedicated payroll services are more likely to be satisfied with their choice. There is no one solution perfect for every business. However, the following oft-forgotten considerations are worth thinking about as you choose between payroll software and services.

Payroll Software Doesn’t Guarantee Compliance

Payroll software can assist businesses with a variety of everyday payroll functions. But there is never any guarantee these functions are fully compliant. This is especially true for manual software controlled by the business. Those who lack payroll expertise can easily make crucial mistakes that could enhance the risk of an audit. It is possible to minimize the risks somewhat with outsourced software. But often, external providers based far away do not possess the necessary understanding of local regulations or compliance necessities.

Payroll services work in close cooperation with businesses to ensure full compliance. They build strong relationships with business clients, offering years, even decades of high-quality service.

Payroll Systems Can Be More Expensive

Payroll software, payroll servicesPayroll systems often tout savings as a primary advantage. But the cost analysis is not as straightforward as it may seem. This is particularly true for small businesses, as the cost of maintaining software is proportionally greater with only a handful of employees on the payroll. Payroll services offer a more scalable approach, in which they accommodate the specific needs of the business.

When planning for expenses, consider the cost of time wasted. Small business owners cannot spare the extra time needed to manage manual payroll systems. Payroll services free business owners and their employees up to focus on more important — and more profitable — matters.

From in-house accounting to local providers, a variety of accounting options can ensure all workers receive their wages and benefits in a timely and accurate manner. There are situations in which software can prove useful. However, it is by no means the one-size-fits-all solution that some software providers would have you think. There are many benefits and opportunities for savings when you work with a payroll service. So, don’t discount the option of having somebody else tackle your accounting nightmare.

Payroll software is never a sure bet, so count on the payroll experts at Incompass instead. Call (916) 974-939 at your earliest convenience to learn more about our payroll services.

Categories: PAYROLL & ACCOUNTING.