As a small business owner, you have a lot on your plate. From the moment you conceived of your small business idea to writing the business plan, obtaining financing, finding a location, hiring employees, opening your doors, and now managing the growth of your small business, you are constantly on the go, attending to matters. Thus, when it comes to a bookkeeping task, such as payroll, which is usually every two weeks, you have to find time to do that as well. Or, should you outsource?
Peakview CPAs serves Northern Loveland with the best accounting, bookkeeping, and CPA services. We also offer tax consulting services. We have over 50 years of combined experience in helping our clients with small business CPA services. Our mission is to go the extra mile for our clients in finding tax deductions and other ways to save money. As part of our bookkeeping services, we offer payroll processing as well. Below, we’ll review some of the reasons to outsource payroll for your small business. Contact our CPA company for small businesses today to get started!
REASONS TO OUTSOURCE PAYROLL
Saves Time
Perhaps the biggest reason that Peakview CPAs hear from our Northern Colorado clients about why they outsource their payroll is that it saves time. Even with the best small business accounting software, processing payroll just takes time. You have to verify an employee’s hours, check to see if they took PTO (paid time-off), adjust for commission services if applicable, ensure their pay rate is right, and check that their deductions (such as those for health care) are correct. Furthermore, if you hire a new employee, you have to process their paperwork and ensure their new hire paperwork is filled out correctly (W-4s and I-9s). The same is true for those employees that leave the company. All of this is time-consuming.
Thus, when you outsource payroll to a great payroll processing company, such as Peakview CPAs in Loveland, you will save a lot of time, hassle, and headaches. You will free up time to focus on more important tasks, such as offering new products and services to your customers. You won’t have to keep paperwork in order or worry about processing errors and fixing them. In short, you can focus on what you are good at, and let the experts focus on their strengths.
Saves Money
As a small business, you are always looking for ways to save money. From paying bills online to avoid postage costs to combining an employee’s job tasks to save on employee hours, every penny matters to the bottom line when you are a small business owner.
With regards to payroll, although you will be paying the payroll company for their services, you’ll be saving a ton of money overall. You won’t have to hire a dedicated employee to the task, which entails not only paying their salary, but also their benefits, which can be significant. Your time is more valuable planning the future of the company rather than processing payroll, paying the payroll taxes every month, and preparing payroll reports. Plus, you can go on vacation and not have to worry about your employees being paid. And it’s hard to put a value on recharging and relaxing when it comes to your business.
Avoids Mistakes
Mistakes happen quite frequently in payroll processing when you are doing it yourself, even with only a dozen employees. It’s easy to get the number added up wrong, to input someone else’s hours on the wrong line, or to forget to put in PTO hours. When mistakes are made, corrections have to be made, which often take more time than processing payroll.
When you outsource payroll to a professional payroll service in Northern Colorado, such as Peakview CPAs, the payroll company is much less likely to make mistakes, and they have a thorough checks and balances system in place to avoid mistakes. Because they process payroll all the time, they know where to look for frequent mistakes and they take the time to double and triple check their numbers, which can avoid frustrated employees who don’t get paid correctly.
Avoids IRS Penalties
The IRS has strict deadlines on when a small business has to submit their payroll taxes. If these deadlines are missed, late fees are tacked on, and these late fees aren’t a few dollars. In fact, the IRS reports that 40% of small businesses pay on average about $845 a year for late filings or for taxes that were filed incorrectly. To a small business, that is no chump change.
By partnering with a top-notch payroll service, you can rest assured that your payroll taxes will be submitted to state, local, and federal governments on time. Plus, they stay abreast of the changing laws with regards to payroll taxes, which is hard for small business owners to do who have a million other things to do. In addition, most payroll services will pay any late fees incurred if they made the mistake in filing. The government will audit any business it believes is misrepresenting their company or their employees’ time, which making frequent mistakes in payroll tax submissions can trigger. Tax audits are no joke. They are time-consuming, and if fees are assessed, they are costly. The IRS reports that in 2016, it assessed penalties on almost one million businesses with income between $200,000 and $1 million in more than 1.8 million audits performed.
Thus, the peace of mind a payroll company, such as Peakview CPAs in Loveland, can offer to keep everything in compliance with state, local, and federal laws with regards to payroll is priceless.
Offers Better Security
With the preponderance of hackers who are bent on stealing information for financial gain, keeping your employees’ personal information safe has never been more important. Even when you hire an employee to process your payroll, there is always the risk of a breach of confidentiality in terms of who makes what, embezzlement risks, fraud, and even paying themselves more than what is owed.
Thus, when you partner with a professional payroll company for your payroll solutions, you can rest assured that they have secure software and best practices to keep your employees’ information safe, as well as backup systems in place so that your data is never lost. Some systems can even alert your payroll processing company to any errant activity that appears suspicious. When it comes to your finances, you can never be too cautious. Our CPA services for small businesses take every precaution possible with your employees’ data to ensure protection.
Gain Expertise & Access to More Services
Many payroll companies are run by professional bookkeepers, accountants, and certified public accountants (CPAs) and offer many more services in addition to just payroll processing. For example, Peakview CPAs offers tax preparation services, bookkeeping services, such as helping with accounts receivable and accounts payable, and tax consulting services, which focuses on financial and business analysis and forecasting, in Northern Colorado
Thus, when you decide to outsource your payroll processing, not only are you hiring the experts who know the ins and outs of payroll logistics and all applicable law, but you are also gaining access to a myriad of other services that your small business can use. Furthermore, many companies will offer discounts if you do enroll in their other service plans. However, even if the only thing you do is payroll processing, having access to CPAs and tax professionals for advice can be beneficial.
CHOOSE PEAKVIEW CPAS FOR ALL YOUR PAYROLL NEEDS
As the best CPA for small businesses, we also understand how challenging payroll can be, especially with a large number of employees. Thus, Peakview CPAs in Loveland can help with payroll taxes, paying employees, preparing W-2s and 1099s, and all of the other fun, legal accounting stuff that goes along with having employees. We know that you have much better things to do than sort through time cards and PTO requests.
With regards to our other services offered, our expert tax and business consulting services can help you clarify goals, project numbers, and help you gain a grasp on your numbers, your profits, and your losses so that you can improve and seek new business opportunities. We also offer tax advisory services on sales tax preparation, business succession planning, and more.
Peakview CPAs wants to help small businesses grow. We do this by helping you with your accounting, bookkeeping, and payroll needs. Call our dedicated, small CPA firm today to get started!
