One of the best decisions that you can make is to hire a bookkeeping service provider for your business. Since managing employee payroll is not an easy task, it is sometimes wise to leave this work to a full-service payroll company. 

You might think that you can pay your hourly employees on time using accounting software like QuickBooks Payroll and take care of all payroll taxes on your own. However, if you want to remain focused on the core needs of your business, payroll responsibilities can be a distraction and a drain on your energy. 

Even if you have defined your payroll plans and possess a bit of accounting knowledge, there is a reason why companies rely on contractors for tax filings, keeping the books, and other payroll services. Business owners want an experienced partner to look over their finances and to not be distracted by worrying about it themselves. Here’s everything you need to know about bookkeeping service providers. 

What Are Payroll Services?

A payroll service handles all your payroll accounting. This means that they would manage the recording and management of employee compensation, direct deposits to their bank accounts, and assist with generating financial reports for effective tracking of expenses. Moreover, the service provider would also manage all the withholdings such as federal and state taxes, Medicare taxes, contributions, social security, wage garnishment, and health insurance premiums.

Since payroll is an integral element of every business, you need the help of an expert to better manage your company. Through outsourcing, you get to save yourself the trouble and focus on improving your business.

Benefits of Contracting a Bookkeeping Service for Payroll

There are many perks to partnering with an experienced bookkeeping service provider. Let’s look at a handful of them.

1. Saves Time

A major benefit of outsourcing your bookkeeping tasks is that it helps save time. You might think that bookkeeping is a task that simply needs to be performed twice a month. However, it could not be further from the truth. It requires attention to detail and full commitment. Completing bookkeeping takes a great deal of time on an ongoing basis. Otherwise, you are likely to end up making costly mistakes.

As your team continues to expand, it will only take more time to perform bookkeeping responsibilities yourself. Checks and balances must be ensured throughout the month to eliminate the possibility of any errors. This is why it makes sense to opt for a payroll service provider. It will save you the trouble and help you spare a ton of time so that you can put it to good use growing your company.

2. Cost-Effective

A common misconception that many businesses believe in is that outsourcing is costly. However, it is actually more cost-effective to hire a bookkeeping service provider instead of employing an in-house team to handle the accounting systems and look after all programs and devices. If you decide to employ an in-house team, you would have to train them, outfit an office, and make sure that your team keeps up with the latest technology and trends. Besides, you would have to put in a lot of time to get the department up and running.

When you combine all the costs that will need to be incurred to establish a bookkeeping department, you will come to realize that hiring a payroll company is a much more affordable option. All you will need to do is pay the service provider a flat fee for an amazing service. Thus, you can expect to save money.

3. Stay Organized

A great benefit of contracting a bookkeeping service provider is that it helps organize and simplify everything for you. The contractor will help you put your records, finances, and other documents in order. They’ve got the technology, infrastructure, and most importantly, the experience to manage your books and payroll perfectly. No matter which accounting tasks need to be taken care of, they can handle them. 

4. Ensures Accountability and Promotes Discipline

When you hook a bookkeeping service provider, you will be delighted to know that they will not rest until they exceed your expectations. They’ll ensure error-free payroll management, helping you maintain accountability and discipline in this area of your business. And with most of the day-to-day payroll and bookkeeping work off your plate, you’ll be able to focus on your customer experience, product quality, and employee morale and success. 

5. Accuracy

In addition to the above, you will also benefit from accuracy. When running a business, it is crucial that you seek to remain error free, in payroll management, as well as with taxes, in-house documentation and when compiling customer data.. This is another place where a bookkeeping service provider truly shines. They possess the skills, tools, and experience needed to maintain accuracy, even in a whirlwind of incoming information and changing data. 

Accuracy keeps you organized, helps you avoid costly or timely errors, makes sure you’re abiding by all rules, and increases the level of trust that the public has in you and your brand. 

6. It Helps Keep Your Employees Happy

If you take on payroll management on your own, you are likely to make mistakes such as missing or duplicating data. This would result in payroll discrepancies which can affect staff morale. You risk underpaying or overpaying workers, which is always damaging to you if you need to backtrack and fix the situation. Employees are likely to distrust you in the future following mistakes like this. 

Your payroll service provider will go out of their way to make sure that your employees are paid exactly what they are owed with all deductions and withholdings precisely calculated. Again, opting for an expert ensures your brand credibility and your own reputation are maintained.

7. Keeps You In Good Standing With the IRS

Compliance with the IRS is essential for running a successful business. Your service provider will be a virtual payroll guru, so they will make certain you never miss deadlines and are able to check off every requirement the IRS has.. 

It’s too easy, especially when you’re just starting your business or during a season when things are getting uniquely busy, to lose track of certain imperative guidelines and rules, and rush through things just to get them done. But this will only slow you down when your errors come back to bite you later on…something you simply can’t afford. 

8. Lowers Stress

Every business owner knows just how stressful it can be to manage bookkeeping. Between everything you have to manage and the time and focus it takes to see your vision through, having to worry about overseeing every aspect of your bookkeeping process can add a significant level of stress to your daily life. 

Bookkeeping service providers will help free up your time and energy so that you can relax and focus on running the business. More than this, though, when you’re running a business, it tends to spill over into your personal and family life. Putting payroll responsibilities on that pile means more time away from loved ones, less time for you to relax and recharge, and less freedom to enjoy the success you;re already experiencing. 

9. Improve Cash Flow

If you are having cash flow issues or want to improve your revenue, you can turn to a bookkeeping service provider to help you out. Bookkeeping professionals will look into every aspect of your budget to spot trouble spots or missed opportunities. This includes a thorough analysis of payroll. They can assess your current situation and future needs and make recommendations based upon these observations that can help you keep more cash in-house.

You may pay for too much overtime when another option exists. You also might be over-hiring and investing a lot into training when cross-training other employees or promoting from within could be a better solution. 

10. Streamline Your Payroll Process

Bookkeeping service providers are great at choosing just the right tools and policies to help streamline and refine your company’s payroll process. Whether it be adopting direct deposit, shifting to a more reasonable pay schedule, moving from physical time cards to an electronic system, and helping you create a cleaner, easily accessible, and instantly updated online employee schedule, their suggestions help make your team members an even greater and more valued asset in your organization. 

Conclusion

You might think that by handling the payroll on your own, you’ll be staying in control and saving money. Consequently, oftentimes, the very opposite is the truth. Attempting to juggle everything from planning and development, to customer experience, product design and marketing, can leave you exhausted and cause you to miss out on the power gained from strategic partnerships.  Adding payroll responsibilities to this already growing pile will dilute your focus and energy that much more. Professional partners help us build the kind of business we always wanted. 

Sound accounts helps business owners find greater success by expertly managing their books and their payroll process. This means more productivity and less dress for you. Contact us today to learn more about partnering with us. 

To learn more about the benefits of bookkeeping service providers, check out our frequently asked questions below. 

FAQ

How does a bookkeeping service provider benefit my business?

There are a number of benefits offered by a bookkeeping service. By hiring their service for your business, you can expect to reduce stress, cut down costs, make compliance with the IRS, improve your cash flow, maintain accurate records, and keep employees happy.

What is the Importance of bookkeeping and accounting?

Bookkeeping and accounting are considered one of the prime languages of business. If you want to gain a better understanding of your company, you need to get them right. Detailed financial management is the cornerstone of long-term success. It will help you gain a deeper understanding of what makes your business tick and how to make it function at a much higher level. Partnering with an expert in this area can help you get the most benefit out of your bookkeeping and budget. 

What are the responsibilities of a bookkeeper?

A bookkeeper has various responsibilities and areas of expertise. Here are some of the most common below.

Sends invoices to clients

Prepares financial statements

Keeps the company prepared for tax time

Day-to-day management of accounts and expenses

Maintains updated and accurate records

Ensures your business follows all applicable laws.

Handle accounts receivable and accounts payable.

Processes and manages all payroll needs