Are you tired of doing payroll and handling taxes on your own? Fed up with paying people to do your payroll and still having errors? Well, it’s about time you fixed that.
Payroll is a sensitive process that needs to be handled with care and responsibility. The smallest error like a misplaced number can mess up the whole process. An error in payroll will not only lead to unhappy employees hence a frustrated business owner but will impact negatively on your business.
Deciding on the right Payroll system is a tricky business because you want nothing but the best. You can either choose to manually do payroll, hire an accountant or CPA, or use Payroll software.
Here are the pros and cons of each system, find out which is the best choice for you.
1- Do it Yourself:
If you’re still struggling with traditional paper & pen to get your payroll done that means you’re still making your employees use timecards. If that’s the case, it’s about time you leave the stone ages behind and join the 21st century. Even though the process is long and painful, it comes with its set of pros and cons.
- Full control over your payroll protecting your financial information from risk of theft
- Save cost on pricey accountants or software’s
- Only suits small businesses with 10 or fewer employees
- A lot of manual work adding overtime and needed tax deductions
- Payroll is time-consuming, can take up to days
- Must always be up-to-date with the latest tax and state laws
2- Hire an Accountant or Payroll Firm:
Many businesses prefer to outsource payroll by hiring an accountant or relying on a payroll firm. It is preferable because if you already have this person doing your tax filings, why not hand over payroll?
- Delegating payroll to someone else other than yourself
- Finishes all tax deductions and familiar with payroll taxes
- Payroll firms offer other accounting benefits
- Accounts and firms are expensive
- Someone else will have access to sensitive, financial data
- Error-prone, humans make mistakes!
- You no longer have control or supervision of payroll
3- Use Payroll Software:
This is probably the best method for payroll due to its simplicity and convenience. Using online software like ClockIn Portal, your employees will daily have their worked hours clocked in with one click. You’ll have quick and accurate payroll reports in just a few minutes!
- Whether payroll is weekly, biweekly or monthly, you can export a payroll report
- Full control over payroll with flexibility
- Easy manual work needed
- Accurate calculations
- Customized overtime and approved manual shifts are automatically added
- Mileage reimbursements are made for employees mostly on the road
- Less expensive than pricey accountants
- You will still need to make bank deposits (or transfer electronically)
- Tax deductions or employee deductions are manually added
Using online software to assist in payroll will eliminate using lousy timecards and assures payroll accuracy. You no longer have to be troubled with miscalculations or errors in a time and energy consuming process.
You or the accountant should focus on more urgent tasks for your business than going through the hassle of payroll every month.