Do you love to crunch numbers for your business? If you’re like most entrepreneurs, you answered “no” to this question. In fact, you may have even screamed it inside your head! That’s because, while they are essential, bookkeeping tasks can be tedious and complicated for business owners to handle on their own. They can also be time-consuming. This is why so many entrepreneurs seek help from Employer Advantage. But if you still need convincing, here are a few more good reasons to get help with accounting.
Payroll Can Be Confusing and Mistakes Can Be Costly
Payroll mistakes are pretty common. Some of the most prevalent mistakes that small businesses make when processing payroll include:
- Missing deadlines and failing to pay employees on-time.
- Forgetting to send tax forms, including 1099’s and W2’s.
- Keeping unorganized and/or non-detailed payroll records.
- Not backing up payroll records and other essential documents.
It takes a lot of time and attention to detail to avoid these missteps, so it’s smart to turn to the many courses and other resources that are accessible to you online.
Invest in Payroll Software and Services
While the above-mentioned mistakes may not seem like major ones, making any one of them could land your business in serious hot water. Some payroll mistakes have even cost large businesses millions of dollars! If you want to avoid added expense and stress, you need to understand current tax rules and regulations and stay on top of new ones.
One way to streamline your efforts is to offer paycheck direct deposit. Direct deposit will ensure that your staff is always paid on-time and without either of you having to worry about paper checks. Last-minute adjustments are also easy enough fixes, so neither you nor your employees have to worry about inconvenient delays.
Tax Mistakes Can Spell Disaster for Small Businesses
Another reason to get help with accounting is your taxes. It doesn’t matter how many times you’ve done your own taxes solo — taking on business taxes is a whole different ball game. That’s because businesses have to follow an entirely different set of rules from the IRS.
You may be thinking that DIY taxes will help save your business money, but you also need to consider the potential costs of making an error on your returns. Missing a deadline could land you with hundreds (or potentially, thousands) of dollars in penalties, or you could face an audit. But understanding these rules can be difficult and is one reason most experts warn against DIY returns.
Get Professional Help When Filing Your Taxes
At the very least, it may be well worth it to hire an outside firm like Employer Advantage to handle your payroll taxes, as well as another great partner to manage your business accounting. This way, you’ll have easy access to the documents you need to file your return in a timely manner. You also won’t have to worry about payroll and tax mistakes that could result in penalties.
You can also simply visit a tax preparation service each year or invest in more robust accounting help for your business. On average, most small businesses pay between $1,000 and $5,000 for professional accounting services. This is a fraction of the cost of potential accounting, payroll, or tax mistakes. Also, accountants often find hidden savings opportunities in your books to make up for the expense.
Time is one of your most important assets. If payroll, taxes, or any other accounting task takes affects yours, it may be time to bring in help — be it a top-rated accounting software or experienced professionals. Either way, saving time and stress will be well worth any extra expense.
If you need help with payroll, human resources, risk management, or any other operations in your business, contact Employer Advantage for a consultation.
Blog contributor: Chelsea Lamb of businesspop.net