Financially Simple LogoFinancially Simple LogoFinancially Simple LogoFinancially Simple Logo
  • Home
  • Pandemic & Business
  • Starting
    • Start Here
    • Starting a Business Article Series
    • Podcast
    • Essential Advisory Team
      • Financial Planner
      • Certified Public Accountant
      • Lawyer
      • Insurance Agent
      • Banker
      • Business Coach
    • Supplemental Articles
      • Business 101
      • Taxes
      • Debt
      • Insurance
      • Finance
      • Laws
  • Growing
    • Start Here
    • Business Value Growth Series
      • Foundational Articles
      • Planning & Strategy Articles
      • Leadership Articles
      • Sales Articles
      • Marketing Articles
      • Personnel & Staff Articles
      • Operations Articles
      • Financial Articles
      • Legal & Insurance Articles
    • Podcast
    • Supplemental Articles
      • Business Taxes
      • Finance
      • Debt Reduction
      • Insurance
      • Legal
  • Exiting/Selling
    • Start Here
    • Building a Sellable Business Series
    • Podcast
    • Supplemental Articles
      • Business Finance
      • Taxes
      • Debt
      • Insurance
      • Legal
  • Personal
    • Start Here
    • Personal Finance for Business Owners Series
      • Foundational Articles
      • Cash Flow Articles
      • Insurance & Risk Management Articles
      • Investing & Retirement Accounts
    • Supplemental Articles
      • Retirement
        • Retirement Planning
        • Estate Planning
        • Income for Life Series
      • Accumulation Planning
      • Investing
      • Tax Planning
      • Personal Financial Planning
      • Insurance
      • Tax Tips
      • Savings
      • Education Planning
      • Debt
      • Most Popular Articles
  • Multimedia
    • Books
      • The Ultimate Sale
    • Courses
      • NEW! Comprehensive Strategic Planning
      • Debt Pay Down System for Business Owners
    • Podcast
      • Listen on Spotify
      • Listen on iTunes
      • Listen on Stitcher
      • Listen on Libsyn
      • Listen on Google Play
      • Listen on TuneIn
      • Listen on PlayerFM
      • Listen on RadioPublic
    • Newsletter
    • Video
      • Video Blogs
      • Our YouTube Channel
      • Subscribe TODAY!
  • Free Resources
    • Get Control Workshop
    • PPP Expense Tracking Calculator
    • SWOT Analysis Worksheet
    • Strategic Planning Worksheet
    • Business Entities Cheat Sheet
    • Pro Forma Example Worksheet
    • Personal Budgeting Calculator
    • Financially Simple Newsletter
  • Work with Us
    • Work with the Financially Simple Advisory Team
    • Speaking & Training Opportunities
    • Have Justin Educate Your Team
    • “Ask Justin”
    • Awards & News
    • About Justin
4 Ps the Core Elements Of Marketing
9 Core Elements Of Marketing Your Business Must Have
February 4, 2019
fully utilizing the marketing for your business
Are You Under-utilizing The Marketing in Your Business?
February 6, 2019

Still Doing Your Own Payroll? – Financially Simple Reasons to Stop

February 5, 2019
Should I Stop Doing My Payroll

As a business owner, large or small, one of the biggest jobs you have in advancing your business is taking care of your employees. One of the ways you do that is by making sure paychecks end up in their hands or bank accounts when they are supposed to. For many small business owners, all too often that means you are relying on yourself to do the work of a bookkeeper. If that’s you, it’s time to stop doing your own payroll and hire someone… here’s why.

Recently a client that is a dentist called me for my thoughts on doing just this. He began to explain how the extra time he spent on payroll was getting to him and he just wasn’t sure he could do it anymore. So he wanted my advice on what I thought he should do.

First of all, I never recommend that someone do their own payroll. It just is not the wisest business decision you can make. As a business owner, paying someone else to do your payroll is money well spent. Payroll is one of those things where you are dealing with the Department of Labor (DOL). The last thing you want is them breathing down your neck. Just don’t do it.

Stop Doing You Own PayrollOver the years, I have found that many of my entrepreneurial doctor clients try to do this on their own. If you’re a dentist, keep teeth gleaming, don’t worry about check writing. As an optometrist focus on sharpening other’s vision, not crunching numbers. Veterinarians are there to maintain an animal’s health, not reconcile balances. So do what you know how to do and hire a professional to keep your payroll in check. It makes more sense to get things off of your plate so you can focus on doing the job that you know how to do and are really good at.

“Don’t let someone that is worth $25 an hour do $8 an hour work.”

Click to tweet

Don’t allow yourself to get caught up on a day when you’re overworked and rush in to deal with payroll for your employees. I once heard someone say, “Don’t let someone that is worth $25 an hour do $8 an hour work.” In this case, the dentist that makes $100 per hour is doing the job of someone making $25 an hour. Don’t waste time on developing a skill set that is below your pay grade. It will not save you in the long run.

When it comes to payroll, there are choices. One option is to have someone in your office take over handling it. You could purchase accounting software, like Quickbooks, that does most of the work for your internal employee. Many come with payroll features.

Perhaps you are like this dentist, and you don’t want someone in the office knowing how much others make. If that is you, then hire a bookkeeper. Our office has an offsite bookkeeper. Of course, our company is rather small and only has about five or six paychecks going out of each cycle, but she is the one in charge of that. She handles all of our books. It is her job to process our payroll and give me a report after each cycle.

Still, yet, another option is outsourcing it to your accountant to do the job. Many CPAs offer payroll services. If that doesn’t seem like a good fit for you, then maybe you hire an actual payroll service, like ADP. There are quite a few out there. Do some research and find one you are comfortable using. Be certain they are a reputable company.

So get it out of your head that allowing someone else to do payroll is going to cost you too much. That is simply not true. We use a software company and bookkeeper for a combined fee of about $150 a month. That’s it. My company spends about $1800 a year on payroll, and it frees our team up to give clients our very best. If you’re thinking about doing your own payroll, DON’T!! If you’re already doing your own payroll, STOP!!

You don’t want the DOL in your business. Keep yourself out of the muck. Instead, reward yourself with time and get rid of the headache by hiring someone. Not to mention, you are much more apt to give your clients a little more attention when you are not overworked. Win-win!

GO TO BUSINESS GROWTH ARTICLES

Share

Related posts

January 1, 2021

Measuring Value Improvement of A Business: What to Know


Read more
December 30, 2020

The Profitability Gap: A Business Owner’s Guide


Read more
December 29, 2020

11 Business Lessons from 2020: Applying Them to 2021


Read more
Business in Crisis series
Personal Finance Biz Owner series
Business Value Growth Educational series
How to Build a Sellable Business Educational series
How to Start a Business Educational series
Debt and the Business Educational series
The Ultimate Sale is now available on Amazon

Don't Miss New Articles

Subscribe to the twice-a-month email newsletter and receive articles crafted by the experts at Financially Simple. And yes, you can easily unsubscribe at anytime.
  • Should be Empty:
  • Special Business Series:

    Articles:
    Starting A Business series
    Growing Business Value series
    Building A Sellable Business series
    Debt Reduction for the Business Owner
    Income for Life Retirement series
    Podcast Series:
    Starting A Business
    Growing Business Value
    Building A Sellable Business
    Personal Finance for Business Owners
    Business Podcast
    Get Answers:
    Ask Justin
    Work with Justin’s Team

    Awards & Accolades:

    Investopedia Top 100 logo
    Investopedia Top 100 Advisor – 2018, 2019, 2020
    Exit Planning Institute Leader of the YearExit Planning Institute Leader of the Year
    Feedspot Top 10 Business PodcastFeedspot Top 10 Business Podcast
    Forbes Finance Council
    Top 20 Podcast- Financial AdvisorPlayer FM Podcast – Top 20 Financial Advisor

    Educating thousands like you on:

    Yahoo Finance logoFinancial Planning AssociationMSN MoneyForbes logoNerdwallet logoFox News logoInvestopia logoExit Planning InstituteKiplingers logoKiplingers logo

    Get your copy today!

    The Ultimate Sale Business Growth
    The Book That Teaches Business Owners How to Sell Their Business for Maximum Profit

    For your security:

    GoDaddy Verified and Secure
    McAfee Secured
    © 2021 Financially Simple™
    Disclaimers, Disclosure, Cookies, & Privacy | FINRA’s BrokerCheck
    Form ADV | Form ADV Appendix 1 | The Mission of Financially Simple & Heritage Investors