3 Ways to Improve Your Bottom Line with a PEO Company

Why pay more when you can get better for less?

The PEO company (Professional Employees Organization), CBR (Creative Business Resources), would ask you, “What is the best advice you ever had?”  “Buy low; sell high”?  “Never pay full price?”  “There’s more than one way to skin a cat?” Or would it be the personal favorite, “Why pay more when you can get better for less”

Your PEO company, CBR, can provide you with some real leverage to improve the bottom line.  By taking many administrative tasks off your plate, a company can reduce those costs while improving quality and accuracy. There are three particular areas where a PEO company can really make a difference in reducing a company’s administrative expenses: improving the bottom line profits, stabilizing the predictability of cash flow, and increasing the return on investment for each of your employees.

Immediate and lasting improvements to your bottom line

The biggest hot button in all business-for-profit companies is finding ways to improve the bottom line in the short-term and the long-term.  One of the burdens in a growing business comes from the amount of time spent administering the issues surrounding employing people.  High on the list, of course, is the management of payroll, benefits, tax collecting, and tax reporting.  Many small business owners see profits eroded away by these costs as they come to realize that they spend more time collecting taxes for the government than they do creating profit income for themselves.  If you feel that way, don’t worry; practically all of us do at one time or another.

One huge benefit to smaller businesses (particularly those with fewer than 200 employees) would be to make all that tax collecting and other administrative burdens simply go away.  CBR, a leading PEO company, can make that happen.  In fact, we not only enjoy doing it for you, we live for it!    We help you to reach that magical apex called operating leverage—the point at which your company can begin to grow without a commensurate growth in overhead expenses. Of course, the same is true of your PEO.  Because of we operate with economies of scale, we can produce your payroll, monitor benefits, assess the correct taxes, and report those taxes on time with regulatory schedules.  What a relief it is when you can get such services that are so much better and pay less for them.

Stabilize the predictability of cash flow

High on the list of ways to improve the profit structure would have to be maintaining a stable and predictable cash flow pattern.  By outsourcing and contracting HR functions to CBR, a company can take big steps in stabilizing the ups and downs of the expenses incurred through administrative services.  Predictable cash flow is the master switch that can open or close your efforts toward business growth and increased profits. Without predictable cash flow, all business decisions become more difficult.  CBR puts more control of that flow back in a company’s hands by stabilizing administrative operational costs.  Once a company settles on the services that provide the most help to the company, the floating nature of those expenses simply goes away.

Not only does that stabilize the cash flow, but future costs of administrative operations outsourced to CBR become predictable.  Simply put, outsourcing your HR administration provides business owners with a pay-as-you-go solution for tax payments, up-front workers’ compensation deposits, and even surprise audit fees such as the ones coming up this year surrounding the new court rulings on 401K and other retirement plan performance.

Employees can provide a Return on Investment, too

This is an interesting opportunity—perhaps one of the most interesting.  Most of us do not have the vaguest idea of how to make it happen.  If a company doesn’t do so already, it needs to see its employees as investments in the company’s future.  As investments, employees are more productive when you can find ways to increase the return on the investment per employee.  In addition to getting more work out of each individual, that happens most easily by reducing the amount of time that is spent maintaining them as employees. When an employee is working on non-core, administrative duties (such as A/R, A/P, benefits, taxes, collections, invoicing, or monitoring vendors) that can be performed by a PEO company like CBR, they are not working on core, profit-making activities.  In addition, the cost assigned for those tasks are going to be higher when carried out by internal employees than it will when the entire administrative duties are outsourced at a flat and predictable rate. It is as simple as that.

Simply put, if you are doing those duties yourself, you are not getting your money’s worth.

Three of a profitable business’s hot topics, improving the bottom line, stabilizing cash flow and ROI per employee, are easily addressed by CBR.  If we can focus on the administrative duties we do so well, your company will be free to focus on what it does best—make money.  Give us a call at our toll-free number, (888) 700-8512 and we can show you those areas where we can help you the most.