The two types of payroll systems for businesses include payroll software and outsourcing. There is a third option of managing payroll by hand, but that leads to needless errors. Choose a payroll method for your business after carefully considering the pros and cons.
Payroll Software Advantages
- Lower cost – Vendors do not create identical payroll software. Some vendors design software with small business needs and budgets in mind.
- Quicker process – Save time by not manually entering data more than once. A program eliminates the need to send data to an external firm.
Payroll Software Disadvantages
- Learning curve – Users may rely on customer support or frequently asked questions.
- Hidden fees – Ask questions to avoid ordering a program with any hidden or extra fees.
Consider your company’s needs now and how those needs may change in five years before you outsource payroll management support.
Outsourcing Advantages
- Accuracy and reliability – Maybe you do not have time to thoroughly review the books. Avoid mistakes with another set of eyes.
- Expert help – Not everyone can be a numbers person. External support can also help if the IRS audits your business.
Outsourcing Disadvantages
- Less control – Run payroll in-house so that you can manage it on your schedule.
- Less security – You know who you hire and that you can trust them. Sending your data to an external provider may result in compromised information.
We handle payroll efficiency and security through our trustworthy AMS Payroll software. Explore how it meets small business needs by downloading our free 1099-etc Demo or by calling (405) 340-0697.