5 Best Practices in Managing Payroll For Small Businesses

Managing the payroll for several employees can become challenging for small businesses. Without the help of an accountant, the owner may struggle monthly in keeping track of every employee’s salary and other fees needed for filing. However, holding a small business afloat can become less stressful through bookkeeping services offered in NYC than before. But what are the best practices in managing payroll for small businesses? Here are some ideas.

1. Divide the Workload

The first step in hiring an accountant is to divide the tasks. They will handle keeping track of the payments of all the employees, including the owner. The workload division should include regularly filing the reports and tax payments submitted by the accountant and keeping track of the payroll taxes and other required tax payments.

However, if you are a one-person business, it is best to give the payroll tasks to your accountant. By doing this, you can focus on other business aspects, such as marketing and sales. The accountant can provide payroll services and manage bookkeeping, keeping the business running smoothly.

2. Update Employee Records

If your business has grown, it is essential to maintain employee records to improve it. The records will act as the first step in running a business smoothly. Keeping records up-to-date will avoid mistakes that could cause an employee grievance or an audit from the tax authorities.

As a result, whenever an employee asks for an updated check, there will be no delays in processing the request. You can easily spot an error or discrepancies between what is stated in the file and what appears on the check.

3. Track Employee Hours Better

To improve record-keeping for employees' wages, it is essential to use an HR system that will keep track of the hours worked by employees. We recommend Gusto. Also, your accounting firm can help you with the task. They can set up the software and provide you with the needed training to handle HR tasks. They can also maintain the payroll system.

4. Never Forget Tax Payments

Taxes are one of the most important things for a small business owner to remember. However, if you have too many tasks to handle, you may forget to file your taxes on time. As a result, you will be charged penalties and interest on the delayed payment amount.

5. Keep Records

When you are a new business owner, you might be confused about what to do and when. In addition, you may be prone to making mistakes. You will avoid mistakes that could cost you your business by keeping records. Besides, you will never forget to file your taxes on time.

Note-keeping is one of the most important tasks for small business owners. Therefore, you should ask for an accountant when starting your business. The accountant will help you keep all your records up-to-date and assist you in the hiring and payroll tasks.

Conclusion

Keeping a small business running smoothly can become challenging. However, you can make the process less stressful by hiring an accountant. As a result, you will not have to worry about payroll, tax payments, and bookkeeping.

Booked offers bookkeeping services in NYC. Our goal is to help our clients and small businesses thrive in their respective industries by providing online payroll services. Nowadays, there is no need to hire an in-house accountant or bookkeeper—all you need is a Quickbooks consultant near you. Book an appointment through our website today for more information.