As an accounting major in college, I quickly learned all of the complicated parts of the accounting cycle. I discovered how to input the details of business transactions into a computerized accounting system. At the end of an accounting cycle, such as a month, I became experienced with calculating the revenue for the period. If you’re starting a new business, determining an accurate amount of revenue for each accounting cycle is crucial. You must know how much profit you’re making each accounting period in order to be successful in the long-term. On this blog, you will discover how an experienced accountant can help you keep track of your revenue.
Payroll can be one of the more stressful parts of hiring employees for your small business. Not only do you need to stay within the law and follow tax codes, you also need a reliable system that ensures your employees are paid on time whether they work in your office or telecommute in remotely. One answer to this challenge is a payroll service.
Size Doesn't Matter
A common misconception is that payroll services are just for large businesses with hundreds of employees and complicated accounting. This simply isn't true. These services are especially useful for a small business. Unlike larger companies, you don't have an in-house payroll department. You may not even have your own dedicated accountant. Payroll servicing companies take on businesses of all sizes, and they offer packages and pricing to fit most company budgets.
Determining Need
One common mistake is thinking you don't need payroll help, from either a service or an accountant, because you only have a few employees. Unless you are willing to learn all tax codes, and then learn them again each year when they change, chances are you need professional help. These are just a few things you have to do in addition to payroll:
Handle employee withholdings and ensure they are at the correct rates.
Pay out these withholdings to the IRS.
File quarterly tax reports.
Handle state tax filing.
Issue income tax forms, including W-2 forms, annually.
Manage contributions to retirement plans other other savings vehicles.
Deal with outside challenges, such as wage garnishments.
This can all be overwhelming if you try to handle all this yourself, on top of your other duties as a business owner. It helps to have a dedicated payroll service taking care of all the details so you are freed up to actually run your business. This can also save you from IRS trouble since the service will be handling employee tax issues and will usually take responsibility for any errors that are made.
Know What You Need
A key to staying within your budget is to purchase only those services your company needs. Many payroll companies offer bundles of services, which can include things like human resource capabilities, retirement planning services, loss prevention programs, or inventory services. Check the pricing and service list when comparing companies, and make sure you are only comparing those services you actually need. For most small businesses with only a few employees, payroll services are the only necessity. You can always add more to your package as your business grows.
For more information, contact a company like Waggoner Frutiger & Daub CPA's.
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