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Back Office
Large corporations find it cost-effective
to have a variety of services
provided by
full-time employees, including,
but not limited
to:
- Accounting services
- Legal services
- Payroll
- Employee benefits administration
Small businesses typically cannot
afford
to hire full-time professionals
in fields
such as these. For one, before
a firm reaches
a given size, the amount of work
needed in
each of these areas may fall
far short of
requiring a full-time employee.
Accordingly,
small businesses will use an
independent
Certified Public Accountant (CPA)
for accounting
services and an independent attorney
for
legal services, normally paying
hourly fees
to both.
For the smallest firms, independent CPAs
normally can help manage the payroll. Once
the number of employees begins to grow, however,
this task may be inappropriate for the CPA.
The CPA will have a relatively expensive
hourly billing rate. He will have limited
time to offer, given other client commitments.
On the other hand, payroll still
may be too
small a job to warrant setting
up an internal
function. In this case, the small
business
owner (often with the independent
CPA's guidance)
should consider outsourcing payroll.
There
are a number of national and
regional firms
that perform payroll services
(sending checks
or wiring direct deposits, withholding
taxes,
keeping records required by law,
etc.) at
a reasonable fee.
Employee benefits include, but
are not limited
to:
- Health insurance
- Life insurance
- Accident insurance
- Tax-advantaged savings plans, such as 401(k)
Outsourcing the administration
of benefit
plans also can be a very cost-effective
move
for the small business owner.
Sometimes the
same firms that provide payroll
services
also offer expertise in these
areas. There
also are benefits consultants
who will assist
you in setting up plans and in
choosing providers.
Check with other business owners
in your
area, or members of local business
associations,
for help in choosing a savvy
benefits consultant. |
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