Outsourcing your payroll may come as an enormous relief. You are able to get a time-consuming task off your plate and free up some time for the other countless projects you have to get done. But over time, you may find that costs are getting higher and the time required to make changes or fixes is increasing. Suddenly, it’s no longer the relief that it once was.
It may be time to bring your payroll in-house. Many of our clients were in the same position. We help them compare doing payroll in-house with PayDirt Payroll software with payroll bureaus.
Usually organizations are spending about $80 – $85 per employee every year with a payroll bureau. If a fix is needed or there is a change to the payroll information they find themselves sidetracked with endless calls or emails to the bureau to make the correction. They also find the entry process and methods used for processing payroll runs difficult and rigid.
So we did some calculations and found that for the most part, organizations that change from a payroll service to PayDirt Payroll enjoy the following benefits:
- Annual savings of 90% or more on the direct costs of using a bureau (approximately $75 per employee).
- Time savings during payroll processing of about 50% – as payroll data entry is much easier.
- Payroll output can be sent directly to their General Ledger, so journalizing payroll expenses will no longer be necessary.
- Improved ability to properly distribute all payroll expenses to the appropriate departments.
- Elimination of the endless annoyance of having to call or email the payroll bureau every time a correction needs to be made (and then having to wait).
- Ability to report on all aspects of payroll at any time (at no charge).
The chart below shows the savings that companies of various sizes should expect as a result of changing from an outside payroll service to PayDirt Payroll.
Of course, there is no way to calculate the value of all the time saved during the process of handling payroll, in addition to the dollar savings, but it will be significant, to say nothing of the other benefits of switching, such as: ease of use, better reporting, easier fix ups, and faster results, to name just a few.
We would love to talk to you about adding payroll to your accounting systems. Contact us today and we can discuss what this would look like for your business.