Payroll is one of the most important aspects of business– it builds financial stability among employees and boosts team morale. Many businesses, especially small businesses, tend to take payroll into their own hands and avoid outsourcing payroll. Managers and business owners spend hours calculating everything themselves, often times juggling other roles in the business at the same time. Taking care of your own payroll works when your business is just starting out, but this should be avoided when the business grows.
Once business is booming, it’s wise to bring in a payroll expert to make sure that you save yourself time, headaches, and money. This will allow you to focus on the growth of the business rather than worrying about whether or not your employees are going to get paid on time. Additionally, without a payroll expert, there’s a chance that you can make a mistake. Mistakes can lead your business to legal penalties, so getting some help might not be a bad idea.
Why get a payroll expert?
A lot of people rely on payroll to feel financially stable, and when you make a payroll mistake, you are delaying employees’ payment. Not only will this affect your employees, but this will also make you lose credibility. Your payroll must always be accurate and on time if you want to keep your employees happy and your business running. When you have a payroll expert by your side, your staff will get paid on time and your business will stay within budget, so it’s definitely worth the investment. Here are some more reasons why you should try a payroll expert:
1.State and Federal Regulations Compliance
Running a business comes with a lot of rules and regulations, and payroll is no exception. Bookkeepers and accountants are professionals who know how to comply with federal and state laws. These laws are very important to follow because they come with penalties otherwise. With a payroll expert, your taxes will always be correct and they will ensure that you are compliant with the Fair Labor Standards Act (FLSA), Federal Insurance Contributions Act (FICA), Federal Unemployment Tax Act (FUTA) and the Affordable Care Act (ACA).
2. Organization of Tax Returns
In most cases, your business will have to file tax returns every year. When tax time comes around, many business owners scramble to find very important paperwork. When paperwork is missing or isn’t filed properly, your information will slip through the cracks and you’ll end up not filing accurate information. Having a bookkeeping system within your company will certainly help your business function better. Bookkeepers will keep your financial information organized so your information is ready for tax time in one central system.
3. Reduce Costly Errors
Payroll experts can reduce data entry mistakes. Without proper data entry, personal and business expenses can be recorded improperly. When this data gets mixed up, the books are wrong and you’ll end up overpaying or underpaying employees, and potentially getting yourself into a financial bind. Bookkeepers will make sure that there are fewer mistakes in record-keeping and will also be able to spot problems.
4. Help you Budget and Plan Ahead
Bookkeepers and accountants have access to your financial data. Their purpose is to collect your business financial transactions and generate reports from that information. An abundance of bookkeepers and accountants find online time tracking services to accurately track employee time and expenses. This data can show payroll experts and business owners how many hours employees are spending on projects, overtime calculations, project costs versus project bills, and more. When it comes to budgeting, this information is incredibly important. With this information, you can plan for the future and anticipate costs to cover future expenses.
5. Peace of Mind
Having a disorganized bookkeeping system can weigh you down. As a business owner or manager, you want to focus on the growth of the business rather than worrying about bookkeeping. This is why investing in a payroll expert is a great idea. You can focus on your work while they focus on the numbers. They will always ensure that your company’s financial information is organized and ready to go. Therefore, you will no longer worry about the banks or the IRS coming your way.
6. Eliminate Late Paychecks and Bills
When you have a payroll expert by your side, you will be less likely to give employees late paychecks, and you’ll remember to pay your bills on time. Face it, you have a lot going on, and juggling all of these tasks can be a challenge. Your payroll expert will help you keep your bills in order and will ensure that they’re paid on time and you’ll avoid those pesky late tax fees. The IRS actually charges a 2% charge on any late submissions, so it’s important that everything is filed in a timely manner. Your payroll expert will also make sure that all timesheets are turned in and calculated properly for payroll reporting. Your bills and employees will always be paid on time.
7. IRS Auditing
In the unfortunate circumstance that you are audited, you’ll want to make sure that your books are in order. If you do not have accurate data, the auditing process will take longer. This can potentially lead your business to more fees and penalties, which is why organization is so important. Bookkeepers and accountants like to use systems that keep all employee data audited. Timesheets.com, for instance, saves all records to a comprehensive audit trail for safe record-keeping.
Investing in a payroll expert may be the right solution for you. With a payroll expert, your data will be accurate, organized, and accessible at all times. This will help your business avoid any penalties or fees. You will have peace of mind knowing that your data is completely organized and safely stored for your records. When you leave finances to the experts, you can focus more on the growth of your business.