Payroll is a complex issue, especially if you have multiple employees. Whether it’s figuring out how to calculate overtime or making sure everyone gets paid on time, payroll has many factors that can make even the most seasoned business owner feel like they’ve bitten off more than they can chew.
However, if you’re a small business owner who does not have an accounting department on staff, using an outside firm for payroll can be one of the best decisions. It will help you handle these issues without hiring someone full-time just for these tasks.
What is Payroll
Payroll is one of the most important functions of running a business. It’s perhaps the most challenging and time-consuming aspect of running a business, but it can also be one of the most rewarding as long as it is consistent.
The difference between an accounting firm and a payroll provider is that accounting firms provide payroll services as part of their overall business service offering, while payroll providers specialize in providing only this type of service.
There are many benefits to using an accounting firm for payroll over a separate standalone service provider, such as:
- A single point of contact for all your HR needs
- A knowledgeable team that has access to all areas within the company (not just payroll)
- Having someone who understands your industry and knows what challenges you face
- Extreme focus of specialty freeing up your resources for more critical business needs
- And more!
Why Does a Company Need Payroll Services
While managing payroll may seem like a basic task, it’s actually quite complicated. A company must ensure they’re paying their employees the right amount at the right time. Failure to do so can result in legal issues, tax problems, penalties, and reputation damage.
A professional accounting firm can help you with all this because they have the experience and knowledge required to ensure compliance with federal and state regulations and best practices for calculating wages and withholding taxes from paychecks. This saves your business time and money by not worrying about making mistakes or doing additional research on what you should be doing with payroll.
The Benefits
1 – Automation
Using an accounting firm specializing in payroll can save time and money by automating your payroll process. This will enable you to spend less time doing manual work and more time growing your company. Automating these processes also means there is no room for common human errors, which is always costly when it comes to payroll.
You can rely on a professional accountant to know exactly what they’re doing when it comes to automation because they’ve done this many times before, which means that their software will be able to handle all of your unique needs with ease so that you don’t have any issues with accuracy or consistency in reporting and tax filings later on down the road. It is all about creating cost efficiencies that speed up your employees receiving what they need on time, every time.
2 – Ensure Timely Payments & Productivity
Payroll is a complex process with many moving parts, and it is critical that you have someone who understands the intricacies of this area of accounting. Many small businesses don’t realize that payroll is a big part of their overall accounting process and mistakenly think it’s just another task to be handled.
A business without proper accounting and payroll appreciation will immediately change its tone once a payday goes by with missing, incorrect, or misdelivered paychecks or direct deposits to employees. When you have the team you rely upon suddenly refusing to work because of bounced checks or direct deposits to the wrong account, you will start reaching out to local accounting and payroll firms for help.
3 – Lowers Risk with Accurate Reporting & Tax Preparation
Accounting firms can lower your risk of non-compliance by providing accurate payroll and tax reporting, saving you time and money. Employing an accounting firm ensures that all payroll reports are filed accurately and on time. Additionally, you’ll get peace of mind knowing that your taxes are prepared by a professional who can help you save money.
This is extremely helpful if you get audited for one reason or another. Not having accurate payroll records will draw out the audit process and likely lead to fines down the road.
4 – Reconciliation Helps Save Money & Ensures Compliance
In today’s competitive marketplace, businesses need to stay on top of their financial responsibilities. It can be difficult for companies to manage all aspects of the accounting process by themselves.
An experienced accounting firm will ensure that you meet all statutory and regulatory requirements while saving money through reconciliation. The process involves comparing two data sets to ensure they match up accurately. You want your accounts to look the same as your financial documents (balance sheet, cash flow statement, profit/losses) because you need them to make decisions about the future of your business.
Focus on Your Business, Let Us Do the Rest
You have better things to do than worry about payroll, so let us do the rest. Not only can we help you with your accounting needs, but we can also handle all of your payroll. You’ll be able to focus on running your business and not be distracted by keeping track of employee wages and taxes.
At Adler Ezra & Associates, our team members are experienced with payroll obligations and know how to handle any situation that may arise during the employment process, so if an issue does come up, we can deal with it immediately for you. Give us a call to schedule a consultation today!
