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You need to outsource your practice payroll if ...

July 12, 2010

Before ditching in-house checks, consider the cost savings, quality of services, and the expertise of the payroll company.

The right time to turn over payroll work to an outside party is different at every veterinary hospital. But Susan Pfeiff, CVPM, practice manager at University Animal Hospital in Tempe, Ariz., in the Veterinary Hospital Managers Association newsletter says the following should be true before you take the leap.

1. The cost savings is significant. Compare the cost of a third-party payroll service to your in-house cost in labor, resources, and equipment to handle payroll internally. Don't forget to consider the revenue that could be generated by freeing up your practice manager or team member who's currently handling this task.

2. The quality of the work will improve. Is a qualified person handling payroll inhouse and keeping up with rules and regulations? Do you increase or decrease risk and liability by managing payroll in the hospital?

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3. The company has the necessary knowledge. Does handling your practice's payroll require a grasp of the core functions of a veterinary hospital? Make sure any payroll company can handle any special requests you have.

If you decide to use a payroll company, ask for references from your colleagues and only sign up for services you really need. Go ahead and get quotes if you're interested, Pfeiff says. It doesn't cost anything to window-shop.

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