Sample Article: Why your accounting firm should process your payroll
Payroll processing is a critical but time-consuming function for any business with employees. While companies can process payroll in-house, other options can reduce risks and increase efficiency. This article will take a closer look at the benefits of outsourcing your payroll to your accounting firm.
Why outsource payroll to a third party instead of processing in-house
When managing payroll, businesses have two main options: either handle the process in-house or outsource it to a third-party provider. However, outsourcing payroll comes with several advantages - making it an attractive option for most businesses.
Third-party providers can save time and money.
Handling payroll in-house may give a business more control over the payroll process and allow customization to fit the company's specific needs. However, it also requires the company to invest in payroll software and dedicate staff members to managing the process. As a result, in-house payroll can be time-consuming and expensive.
Third-party providers, on the other hand, typically have specialized software and systems, so businesses don't need to invest in new infrastructure. In addition, third-party providers have staff members dedicated to managing payroll, so companies don't need to train their employees to do it.
Third-party providers can reduce errors and ensure compliancestrong>
There is little room for error when it comes to processing payroll. Payroll tax filings and payments must be made according to strict guidelines and deadlines, and the penalties for missing deadlines can snowball quickly. When payroll is processed in-house, the business is responsible for filing timely and accurate payroll taxes and reports with the IRS.
Businesses can outsource the responsibility for processing payroll accurately and on time by working with a third-party provider. Outsourcing can provide business owners with much-needed peace of mind, knowing that they are complying with all relevant laws.
Why outsource to your accounting firm instead of a payroll provider?
When deciding whether to outsource payroll to your accounting firm or a payroll provider, it's vital to understand the difference between the two services.
A payroll provider typically only handles the processing and management of payroll, while an accounting firm also offers other financial services such as bookkeeping, tax preparation, and consulting. As a result, accounting firms provide more comprehensive and integrated financial services.
CPAs understand which tax laws apply to your business
Accounting firms are typically better equipped to handle complex payroll issues. For instance, businesses often have to research which jurisdictions require payroll tax filings based on their location (and where their employees reside). Accounting firms will do this front-end research and ensure that your business is registered to pay taxes in the proper municipality, city, county, and state.
CPAs can help with old tax notices
Many payroll providers only help with tax notices received during your business's relationship with their company and will not assist or respond to older notices. For example, if you hire a payroll provider in June 2022 but receive a tax notice from April 2022, your payroll provider is unlikely to help with the older tax notice. On the other hand, a full-service accounting firm will typically help with any tax notices, regardless of when they're received.
CPAs can integrate all of your financial data
Accounting firms can provide you with a single point of contact for all of your business's financial needs. This means they can integrate your payroll data with your financial statements and tax returns, as they will have all relevant financial data at their fingertips. Moreover, an accountant who understands your business's complete financial picture can provide more comprehensive information and services.
CPAs can ensure your payroll is processed in a timely and accurately
Payroll processing can be a complex endeavor. No matter what type of industry you're in, payroll must be processed in a timely and accurate manner. There is virtually no room for mistakes or delays when it comes to payroll - and an accounting firm can ensure your payroll is processed on time and without error.
CPAs also keep abreast of tax law changes and employee changes that will impact your payroll, which can be a headache to manage on your own. Ultimately, outsourcing your payroll to an accounting firm can bring much-needed peace of mind knowing that an expert advisor is in charge of this important business function.
Contact our office to learn about our payroll services
As your business grows, it is crucial to have someone you can trust to handle payroll processing. Contact our office for assistance if you would like to learn more about our payroll services and how they might benefit your company.
Call us at (314) 433-5800 or fill out the form below and we'll contact you to discuss your specific situation.
Schedule a quick 15-min call
Pricing starts at $499 / month.
No long-term contract.