If you have employees working for your business, you should ensure that you know all of your options for managing your payroll. Of course you and your people want the paychecks to be on time and that the funds are available. But as the business owner, you also must work with your accountant to become knowledgeable about complying with all of the federal, state, and local regulations, and with your attorney to make sure all legal issues are taken care of.
Small business owners actually have three options when choosing a payroll solution:
1) Outsourcing payroll to a separate entity or company. You can outsource your payroll management to an accountant, a bookkeeper, or a dedicated payroll service. Once you submit your employee hour reports, your designated payroll person or company handles all of the rest, including deductions, withholding, direct deposits, tax filings, and year-end reports.
2) In-house payroll processing. If your company is large enough, or if you have only a few employees or contractors, you may be able to handle in-house payroll processing. Keep in mind, however, that it can take up to one half-day per pay period to process payroll, and if you do not have a dedicated person on your staff, that time comes out of your schedule.
3) Software payroll solutions. If you are already using an online small business accounting software application for your bookkeeping and accounting tasks, and you want to do your own payroll processing, your best option would be to find an online payroll processing application that integrates with your online accounting application. For Canadian small business owners, Vancouver-based Kashoo Small Business Accounting and Toronto-based PaymentEvolution have partnered to offer an integrated and full-featured accounting and payroll processing solution. For small business owners in other countries, it is recommended that you work with your accountant to find the right cloud-based program for your business requirements. Using an online application that is integrated with your accounting program reduces the possibility of data entry errors and saves time and money.
Kashoo Inc. (http://kashoo.com) develops easy-to-use accounting and bookkeeping software for small business owners around the world. Check out the company’s iPad app, ideal for entrepreneurs on the move. Founded in 2008, Kashoo is located in Vancouver, Canada. For more information about Kashoo, visit http://kashoo.com.
PaymentEvolution empowers Canadian small and medium businesses, accounting firms and partners to manage payroll quickly and easily at low or no cost. Headquartered in Toronto, Canada, PaymentEvolution is lead by a team of technology professionals with many years of experience in Financial Services, Capital Markets and Management Consulting for major corporations and SMBs. Learn more at: www.PaymentEvolution.com.