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Small business payroll software can help you to overcome some of the most critical impediments to growth for your business.
Even if your business is currently profitable, chances are you’ll want to expand your operations eventually. Whether your expansion plans are right around the corner or further down the road, you’ll no doubt have a number of obstacles standing in your way.
Variables such as increased overhead costs and staffing issues are often the difference between a growing SMB and a stagnating one. You’ll need to overcome these if you want your business to reach its maximum potential. So today we’ll be looking at an easy way to do this: small business payroll software
What Is Growth?
Most people know what the word “growth” means. However, what it actually entails will vary by company. For some, business growth means expanding their current line of product offerings and opening new retail locations. For others, business growth may mean onboarding new clients and taking on larger contracts.
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The specifics will largely depend on the type of business you’re running. They can also depend on whether you’re an online vendor or a brick-and-mortar location.
Regardless, business growth should increase profits for your company. It should also build a positive reputation for your business and allow you to take advantage of any new opportunities that may present themselves. Unfortunately, although business growth seems simple in practice, expanding your company successfully is a much more complicated matter.
Some Common Obstacles That Stand in the Way of Growth
The two biggest obstacles standing between your company and business growth are increased overhead costs and staffing issues. As your business grows you will be taking on more clients (and processing more sales). This means you must be prepared to meet the increased demands.
Generally, this means maintaining a larger inventory and employing a larger staff. Both of these aspects result in increased ongoing costs. If your company offers after-sale support, you’ll need to hire more employees in the customer service department as well. This is because more products sold means more potentially problematic customers.
In the past, these obstacles would be addressed by simply hiring more employees to manage the increased demands of your business. Unfortunately (unless you’re overstaffed), your payroll department will be unlikely to be able to manage the expanded payroll in an effective and timely manner. This could force you to expand the payroll department as well.
Moreover, new hires in the payroll department will need to be trained on your current payroll system. Unfortunately, this will take valuable time away from the current employees trying to maintain the expanding payroll, causing them to fall further behind.
How Payroll Software Can Help
The traditional approach to managing your growing workforce by expanding the payroll department has one obvious flaw: It increases your overhead costs!
Every new payroll employee will not only require a lot of resources to train initially, but they’ll also require compensation moving forward. Most companies aim to lower their overhead costs, not increase them. Therefore, it quickly becomes obvious that the company needs an alternative solution. Fortunately, there is one: payroll software.
Growing Your Business Using Payroll Software
Switching over from manual processes to using dedicated software will result in some upfront costs. However, the money you’ll save over time certainly makes it a worthwhile investment.
After the initial implementation, you’ll only be paying a monthly software subscription plan and per-employee management fees. What’s more, these per-employee fees are far less than the cost of employing a payroll specialist each month, making them an appealing alternative.
In terms of current payroll staff, you’ll actually be able to downsize. This is because the new software can manage the entire company payroll on its own. Of course, you will want to keep a few payroll specialists around. But you won’t need to employ nearly as many, which means ongoing expenses will stay low.
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Small business payroll software is a necessity for any business planning on expanding its current operations. Moreover, it’s also a smart investment for the vast majority of businesses. Offering lower staffing requirements, automated payroll processing, and faster processing times, the advantages over a traditional approach are clear. Are you interested in lowering your payroll expenses? If so, click here to learn more about how your business can benefit from making the switch.
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