If you are fortunate enough to run a small firm, or even have one associate, you likely spend a fair amount of time handling administrative and accounting tasks related to firm management. Payroll, for example, can be a consistent time drain. If you find yourself spending more then an hour or two on payroll, consider hiring someone else to outsource it to..
Outsourcing benefits you
One, outsourcing payroll will save you time. You can then use that saved time to market, network, or do other legal work. If you are busy enough to hire an associate, or multiple associates, there is plenty of work coming in. Your time is much more valuable as a lawyer than it is as an accountant. More money will come out of your pocket, but the extra time gives you more chances to put money in your pocket.
Using a payroll service will help ensure the correct taxes are taken out, that you are paying the correct taxes, wages and bonuses are correctly calculated, and hopefully ensuring your payroll complies with state and federal employment laws. Most payroll companies will also make sure that your employees actually get paid.
Outsourcing benefits your employees
You might only have the time to do accounting once a month, meaning employees only get paid once a month. Payroll companies, however, are much more flexible. Most employees are happier when they get more frequent paychecks.
Payroll companies also excel at setting direct deposit, another feature that employees tend to value. They might have more information on different benefit packages, including health care, which also makes employees happier.
The initial cost of a payroll service might be scary. In the long run, however, freeing up that time and energy will allow you to be more profitable with your time.
(photo: Jeremy Brooks)