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E-commerce Payroll: In-house Or Outsourcing? 

by whizconsulting

Many companies face the challenge of deciding which e-commerce payroll solution is right for them. In-house payroll solutions are perfect for small businesses that want to keep costs as low as possible. Outsourced e-commerce payroll solutions are great for medium and large enterprises that want a more complex and comprehensive service. However, even small businesses can benefit from outsourced payroll services in the long run. So, let us learn more about in-house and outsourcing payroll for e-commerce businesses. 

What are the benefits of in-house vs. outsourcing payroll? 

  • Outsourced payroll: Most companies have found that they save time and money by outsourcing e-commerce payroll to a third party. Outsourcing payroll helps streamline the entire process and increase its accuracy and efficiency. The service providers use the latest technology and accounting software to help track and record payroll-related financial data and prepare timely paychecks. They also help businesses file payroll taxes and comply with the relevant laws and regulations. Outsourcing e-commerce payroll allows businesses to focus on other core functions, such as selling products. 
  • In-house payroll: In-house payroll requires businesses to hire an accountant or payroll expert as a full-time or part-time employee to manage the process. Businesses have to incur extra overheads in the form of salary, equipment, accounting software, office space, etc. When a business decides to go for in-house payroll management, it will likely use some accounting or payroll software. This software will also manage the company’s human resources data, including payroll taxes, time cards, and employee records. Businesses also need to regularly train their accounting and payroll departments to keep them up-to-date with the always-changing payroll laws and regulations. 

Deciding between in-house and outsourcing e-commerce payroll 

There are many factors to consider when deciding between in-house and outsourcing payroll. Here are four factors to keep in mind:  

  1. Cost – The main factor to consider in determining which solution is right for your company is cost. Though outsourcing might seem expensive for many businesses, especially for small businesses, it is relatively cheaper than in-house payroll management in the long run. 
  2. Competency – A company’s e-commerce payroll solution should be able to handle a variety of tasks. This will ensure that employees can track time off and taxes and use other business-critical functions. Competency in managing accounting software is also important. Outsourcing bookkeeping and accounting services for small businesses have personnel with experience working on different accounting software and also keep themselves up-to-date. In-house personnel, on the other hand, might not be that well versed in different accounting software. 
  3. Qualifications and experience – It is crucial to check out the qualifications and work experience of the payroll personnel or the outsourcing payroll services provider before deciding which is the best. Outsourcing services providers usually have working experience and knowledge in various accounting fields, including payroll. When it comes to in-house payroll personnel, choose the one with in-depth, updated knowledge and working experience related to payroll management. 


There are many benefits to both in-house and outsourcing e-commerce payroll. The best e-commerce payroll solution is the one that will be able to handle a business’s unique needs. It is important to choose the right payroll management method to ensure the business gets everything as per its payroll requirements without putting too much pressure on the budget. Before deciding which is the best option for the business, it is important to determine its payroll requirements, budget, scope of work, etc. All these factors play a crucial role in deciding the best option for a business, in-house or outsourcing.  

If a business doesn’t have too many employees, the payroll process can be managed in-house. However, for businesses with a higher number of human resources, it is better to go with outsourcing. Bookkeeping and accounting services for small businesses help manage payroll and other accounting functions and save the business time and money. The time and money saved can be reinvested for other core business activities.  


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