How to Choose Between Online Payroll and a Bookkeeper?

Answer 1

One of the largest operating expenses for a business is the cost of processing payroll. Processing payroll accurately and efficiently requires skilled bookkeepers or trained payroll specialists. The costs involved with accurate payroll processing continue to rise annually. Changes in technology have expanded the options for business owners who need to process their company payroll.

A business can drastically reduce their payroll expenses by switching to online payroll processing. The following list will show you how to choose if online payroll or a bookkeeper is right for your company.

1. Low Processing Rates

Bookkeepers are expensive. However, many businesses hire them because they are knowledgeable about payroll taxes and distributions. Online payroll processing provides fast and accurate processing for a lower price. The typical complete monthly cost for 1 to 20 employees is under $50. The national average salary for a bookkeeper is $17 per hour. A business can cut their payroll expenses up to 92% annually.

2. Individual Management

Payroll records can be quickly updated from your online profile. This creates a new set of internal controls that you can personally manage. You do not have to delegate the process to a bookkeeper and trust they will complete it quickly. The information can be accessed from anywhere with a simple internet connection. This means that a last minute payroll addition or correction can be completed even when the business is closed for the day or on holidays.

3. Direct Deposits

Printing payroll checks is expensive and time-consuming. If mistakes are made, the check must be reprinted at an additional cost. To reduce this expense, online payroll offers a direct deposit program. A direct deposit program is typically offered with no additional cost by many banks. The direct deposits can be made quickly and easily with no additional bookkeeping expense.

4. Effortless Tax Reporting

Bookkeepers filing multiple tax reports can increase the potential for errors. Online payroll processors offer easy tax reporting. The documents can be created quickly online and the data is automatically checked for accuracy. The reports can be paid and submitted online meeting the tightest deadlines.

Many businesses are learning to reduce their payroll expenses and choosing online payroll instead of using bookkeepers.