By Stacy Smith, CPA – Shareholder – Audit & Accounting Services – Mize Houser & Company P.A.
This is one of the many questions business owners debate at one point or another, and the solution will vary based on each organization’s needs and resources. Whether you’ve been in business for more than 30 years, or are just starting out, any change in your organization is a good time to take a step back and examine your needs, resources and options. You may want to re-evaluate your back office functions if you:
- Experience staff turnover
- Purchase restaurants in a new state
- Feel your current needs aren’t being met
- Want to streamline your back office functions
- Keep thinking you want to go paperless but don’t know where or how to start
Let’s say you perform your back office functions in-house. That means you’ll need software to perform your payroll, bill payment, accounting, financial reporting, human resources and document management functions, for which there are myriad solutions available in today’s market. And if you decide to outsource, you’ll need to find a provider to perform the services you need.
How do you decide which option is best for you? The following are some factors to consider:
Cost
This may be difficult to compare because not all systems or providers have the same pricing structures. Ask detailed questions to uncover hidden costs, including any equipment or software you may be required to purchase. When considering your in-house costs, staff salaries and benefits are likely the largest chunk of your expenses. Remember to factor in equipment, software upgrades and maintenance as well.
Your Needs
How many birds are you trying to knock out with this stone? More and more businesses are looking for an all-in-one solution, particularly for their payroll and HR needs. Health insurance, ACA reporting, WOTC (Work Opportunity Tax Credit), electronic on-boarding, pay cards and document management are all hot buttons in the restaurant industry right now – not to mention your accounting, reporting and bill payment needs. It’s rare to find one solution that will do it all, so finding one that integrates with other functions is key.
Your Staff
Your current staffing situation may be one of the most important factors in your decision. If you already employ trusted staff members who can perform your accounting, reporting, payroll and bill payment functions, performing these tasks in-house may be your best bet. But if some of your staff members are nearing retirement or you are looking to hire, take a step back and consider your options. Outsourcing any of these functions can be less expensive than hiring, not to mention the added flexibility outsourcing brings – no worrying about how processing payroll will happen when your office person is on vacation or your server goes down.
Are You Tech-Savvy?
Accounting firms, payroll providers and software solutions alike are becoming increasingly cloud-based, which allows organizations to work with their data online rather than purchasing hardware and/or software for their office. The “cloud-based” concept isn’t new, but has been called hosted and web-based in the past. Cloud-based solutions provide the flexibility to work from anywhere with internet access, and the responsibility for upgrades, maintenance and disaster recovery resides with the provider.
Do You Have Good Internal Controls?
Most business owners would say they trust their staff members – otherwise, why would they have them on staff? But how often do you hear about embezzlement and theft in the news? The sad truth is that sometimes employees steal from their employers, so it’s best to have good internal control processes in place to ward off any temptation and keep your business out of that scenario. Does the same person prepare and sign checks? Do you sign checks and give them back to the check preparer to mail? Does the same person create vendors and prepare accounts payable checks? Does someone responsible for accounting functions open your mail and/or bank statement? If you said “yes” to any of these, it’s time to talk with your accountant about strengthening your internal control processes – which might include outsourcing one or more of your back office tasks.
Making Your Decision
There’s no universal answer to this question – each organization’s solution will be different. But considering these various factors can help you decide what’s best for your business.
The PayPlus+ system and services provided by Mize Houser & Company includes a customizable suite of accounting, reporting, bill payment, payroll and electronic document management solutions. The PayPlus+ system can be used by your staff in-house or you can contract Mize Houser to perform the services for you – or somewhere in between. In addition, the PayPlus+ system easily integrates with other systems, including Health+ and selected electronic on-boarding, WOTC and pay card providers’ systems. To schedule a live web demo of the PayPlus+ system, please contact Steph Luke at 785-233-0536 or sluke@mizehouser.com.