The top 5 reasons why small businesses should outsource their payroll

Starting and maintaining a small business is always very practical. With the continuing recession, having one’s business, no matter the size, provides a good cushion in times of unexpected job loss or economic turmoil. But maintaining these small enterprises can also constitute a lot of hard work. Balancing debit and credit sheets; and trying to determine where better to save or lessen overhead costs can be a time-consuming matter, oftentimes leading to unnecessary losses if done incorrectly.

However, with the advent of Business Process Outsourcing (BPO) companies specifically those providing outsourced payroll services, there is now new hope for small businesses who would want to lessen some of their overhead expenses. BPO companies offering small business payroll services is a growing business trend most especially since small-scale enterprises have been growing in tremendous numbers over the past years.

But why would a small business owner consider having their payroll processes and functions outsourced? Is there any real benefit in having this done?


As mentioned beforehand, lessening of overhead costs is one major benefit of obtaining the services of a BPO organization offering small business payroll services. Maintaining even a part-time accountant to handle one’s payroll functions can be a financially consuming activity in itself. A third party provider can definitely help by providing the same service at a fraction of the cost.


Payroll functions are a time and resources-consuming activity in itself. Errors are always definite possibilities, no matter how meticulous one’s accountant is in processing. In obtaining the services of a BPO organization, one can ensure that there is more time used to focus on the necessary aspects of the job and the organization than in trying to determine the errors that happened during their payroll processing.

Tax rules

BPO organizations engaged in small business payroll services also brings with them the necessary updated information regarding government-related withholding taxes and other relevant proclamations. They bring with them the expertise that small organization may not have the time or resources to fully develop and maintain within their companies. This also ensures that no penalties will be meted out on the company due to non-conformity to the new tax rules and procedures.


Small organizations also laud the privacy that BPO organizations can provide them. Salary is oftentimes a taboo subject, hence, it can be quite embarrassing for payslips to fall into the wrong hands. Obtaining a BPO provider can eliminate this by ensuring that no one in the organization, with the exception of the business owners, is aware of each other’s salaries and deductions.


It is also a known fact that employees come and go. The time and resources spent in hiring and training a replacement accountant can cause a lot of headaches to even the most diligent and patient of business owners. Turnover no longer becomes a problem with the services of a BPO company, who shoulders and takes care of the training and consequently, the headaches involved with it.

Business Process Outsourcing (BPO) companies offering small business payroll services is a blessing to all enterprise owners. They make sure that one is provided with the same quality service but with less cost.