Payroll Accounting Options for the Small Business

Payroll accounting is often a source of great stress for small business owners. There are several options available to small businesses when it comes to computing payroll, but one option far outshines the rest.

• Hire an Accountant

Starting a small business is all about finding ways to save money and not overburden your budget. Because of this, hiring an accountant is often not a feasible option for small business owners. Although it is an effective way to handle payroll accounting, the price of hiring an accountant often outweighs the efficacy. Small businesses usually cannot afford to hire an individual accountant, and even less often can they hire an entire accounting department.

• Payroll Accounting Software

These days there are software programs that perform just about every function possible. People used to fear the day that robots would completely eliminate the need for human workers. Perhaps now they should shift this same fear to software.

Luckily for us that day will never come. Software programs can do amazing things, but they are still limited and usually still require a human to operate them. They are also limited in the fact that they are sometimes difficult to use. This can be especially true with payroll accounting software that often requires some accounting knowledge to correctly operate it.

• Outsourcing

Outsourcing your payroll to an Internet based payroll service is often the best option for small business owners. This allows owners to devote more time to developing their growing business rather than worrying about their payroll. You can simply send your payroll information over the Internet (or by phone/fax) and the rest is taken care of for you.

Once your information has been sent your payroll is calculated for you, including all deductions and tax withholdings. All pay vouchers, checks and reports are then sent to your business and are also available for online viewing. If errors have been made the company you have outsourced to usually pays the fees and answer any questions regarding your payroll that may be posed by taxing agencies. Internet based payroll is an excellent solution to any small business payroll accounting problems.

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About the Author:

Kent Fairbourn is a Client Account Specialist for 10x Marketing, an Internet marketing company. Go now to ADP Small Business Services, the business behind small business, to access their free "Solution Builder" to find payroll solutions that fit your business needs.